Nigeria's Internet Growth and Challenges
Nigeria has witnessed a significant increase in internet penetration over the past five years, with the rate rising by 21.75 percent. According to data from the Nigerian Communications Commission (NCC), internet penetration now stands at 48.81 percent, up from 40.09 percent in May 2020. This progress, however, is not without its challenges.
Despite this growth, industry experts believe that the pace of development remains slower than expected, particularly when compared to Nigeria’s rapidly growing population and the government’s ambitious targets for a fully digital economy. A closer examination of the figures reveals a steady but uneven pattern of growth over the last half-decade.
In May 2020, the penetration rate was 40.09 percent, but it dipped slightly to 39.59 percent in May 2021 due to the SIM-NIN linkage directive, which restricted SIM activations. By May 2022, the figure recovered to 43.67 percent, driven by increased smartphone usage and eased regulatory hurdles. In May 2023, the rate rose to 48.28 percent, but it dropped to 43.80 percent by May 2024, following another round of SIM disconnections linked to National Identity Number verification. The most recent data from May 2025 shows a penetration rate of 48.81 percent, the highest in five years.
Growth of 4G Networks
A major driver of this growth has been the increased adoption of 4G networks, which offer faster and more stable connections than older technologies. According to the NCC, 4G usage rose from 32.74 percent in May 2024 to 50.29 percent in May 2025, marking a 53.6 percent increase in just one year. This surge aligns with the government’s push to expand fibre optic infrastructure and improve network capacity across the country.
Under the National Broadband Plan, authorities aimed to make broadband more affordable, targeting a maximum price of N390 per 1GB of data, roughly two percent of median income or one percent of minimum wage. However, industry players argue that data costs remain higher than the government’s target, especially in rural areas where network deployment is slower and operational costs are higher.
The Rise of 5G
While 4G continues to expand rapidly, 5G adoption remains low but steady. In May 2024, 5G usage was at 1.73 percent. By April 2025, it rose to 2.81 percent, and reached 2.93 percent in May 2025. Businesses are currently the primary drivers of 5G uptake in Nigeria, according to Ernest Akinlola, a former CEO of a Nigerian telecom company and renewable energy expert.
“5G adoption may appear low for the mass market, but businesses and corporations are making effective use of the bandwidth,” Akinlola said. Experts attribute the slow 5G uptake to high device costs, limited network availability, and ongoing rollout challenges, particularly in rural communities.
To address these issues, the government has announced plans to deploy 7,000 new telecom towers, with 80 percent of the infrastructure targeted at Northern Nigeria. This move is part of broader efforts to close connectivity gaps, support digital transformation, and accelerate the 5G rollout nationwide.
Digital Infrastructure Gap
Muhammed Rudman, Vice President of ATCON and CEO of the Internet Exchange Point of Nigeria, warned about Nigeria’s dangerous digital infrastructure gap. He emphasized the country’s overwhelming dependence on mobile internet, with 99.98 percent of users on mobile devices and only 0.2 percent on fixed connections. Rudman attributed this imbalance to a weak internet backbone and poor local content delivery, contrasting Nigeria’s situation with countries like South Africa and Brazil that have stronger fixed infrastructure and local internet traffic retention.
He also pointed to the lack of coordinated policy efforts at federal and state levels as a major obstacle to improving internet penetration in Nigeria.
Decline of Older Networks
As faster networks grow, the data shows a steady decline in the use of 2G and 3G technologies, reflecting a shift in consumer preference. For 2G networks, adoption dropped from 44.86 percent in May 2024 to 38.76 percent in May 2025. This decline reflects the increasing number of Nigerians moving from basic feature phones to smartphones. Similarly, 3G usage fell from 10.78 percent in May 2024 to 8.02 percent in May 2025. Operators are gradually reallocating the spectrum used for 3G services to bolster faster 4G and 5G networks.
Bridging the Digital Divide
To support long-term growth, the Nigerian government is embarking on a $2 billion fibre optic expansion project, aimed at adding 90,000 kilometers of new fibre optic cables across the country. This project, backed by partners such as the World Bank, is expected to increase Nigeria’s total fibre infrastructure to about 125,000 kilometers, improving broadband penetration, lowering internet costs, and connecting schools, hospitals, and other critical institutions.
The initiative forms a key part of Nigeria’s plan to bridge the digital divide, promote financial inclusion, and boost economic growth through better telecommunications infrastructure.
Although Nigeria has made significant strides in internet expansion, analysts warn that the current 48.81 percent penetration is far from the government’s 90 percent broadband coverage target for 2025. They point out that achieving the goals of the National Broadband Plan will require more than just infrastructure; it will also depend on the right mix of policy reforms, market-driven demand, funding, and incentives to encourage private sector investment.
For now, millions of Nigerians, especially those in remote and underserved communities, still face challenges in accessing affordable and reliable internet services.