Wisdom Engraced
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Nigeria’s internet service providers (ISPs) are dwindling, and this decline may hinder the country’s goal to provide broadband services nationwide. The National Broadband Plan (NBP 2020-2025) aims to achieve 70% broadband penetration this year, but various challenges, including the demise of infrastructure companies (InfraCos) and lack of commitment from government agencies, may derail this target.
As of September last year, Nigeria’s broadband penetration rate had declined to 41.56%. However, there was a slight increase in broadband connections in April 2024, with the penetration rate reaching 43.5% in March 2024. The Nigerian Communications Commission (NCC) has not provided an official reason for the decline in broadband subscriptions, but it may be linked to the mandatory SIM card verification process.
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The number of active ISPs in Nigeria fell from 252 in May 2024 to 242 in July 2024. Despite new licenses being issued, the decline may be attributed to ISPs’ inability to compete with mobile network operators (MNOs). The demise of operators in the Code Division Multiple Access (CDMA) area, such as Starcoms and Visafone, may also be linked to the issuance of Unified Access Licenses (UAL) to MNOs.
According to the World Bank, a 10% increase in broadband penetration can significantly raise the gross domestic product (GDP) in low- and middle-income countries like Nigeria. Nigeria’s Communications, Innovation, and Digital Economy Minister, Dr. Bosun Tijani, emphasised that promoting digital inclusion and financial inclusion is “dear to his heart.”
The decline in ISPs may stifle competition and hinder the progress of last-mile delivery of broadband to rural and underserved areas. Nigeria ranked seventh-fastest in Sub-Saharan Africa with an average download speed of 27.62 Mbps, according to the Worldwide Broadband Speed Report.
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To address these challenges, the Federal Government is driving initiatives such as the 90,000km fibre optic expansion, Project 774, Universal Access, and the National Broadband Alliance of Nigeria (NBAN). Dr. Tijani stated that President Bola Tinubu recognises the importance of ICT in building a prosperous nation, and these initiatives aim to accelerate broadband penetration and bridge the digital divide.
“President Bola Tinubu realises the place of ICT in building a virile and prosperous nation,” Dr. Tijani said. “To address these challenges and accelerate broadband penetration, the Federal Government is driving initiatives such as 90,000 km of fibre optic expansion… and other projects.”
While these initiatives hold promise, their successful implementation will be crucial in achieving the 90% broadband penetration target. Overcoming infrastructure hurdles, reducing costs, and promoting digital literacy will be essential to unlocking the full potential of broadband connectivity in Nigeria.
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