Connectivity demand is surging, but investors say infrastructure, power, financing and affordability must be tackled together
Nigeria’s digital economy is entering a decisive phase. Data consumption is rising rapidly, demand for connectivity is expanding, and digital technologies such as artificial intelligence and cloud computing are expected to place even greater pressure on the country’s telecommunications networks, data centres and power infrastructure.
But while Nigeria needs massive investment to meet this growing demand, stakeholders say the challenge is no longer simply about building more networks. The country must also address the cost of capital, unreliable power, Right of Way restrictions, inadequate middle-mile infrastructure, affordable smartphones, digital skills and consumer trust.
These issues dominated discussions at the Nigeria Digital Connectivity Investment Forum 2026, convened by the Nigerian Communications Commission (NCC), in partnership with Swedfund and Ookla, at the Onomo Allure Hotel, Abuja, from September 29 to 30.
Held under the theme, “Unlocking Infrastructure Investment through Data, Transparency and Partnerships,” the forum brought together policymakers, regulators, investors, development finance institutions, operators, infrastructure companies, technology providers and other stakeholders to examine how Nigeria can unlock the investment required to deliver meaningful connectivity.
The forum’s central message was clear: Nigeria cannot build a digital economy on connectivity infrastructure alone. Investment in networks must move alongside investment in power, devices, skills and the wider digital ecosystem.
Demand is running ahead of infrastructure
The scale of the challenge was underscored by the dramatic growth in data consumption.
According to the forum, Nigeria consumed approximately 1.6 million terabytes of data in July 2026, representing an increase of almost 47 per cent over twelve months.
At the same time, subscriptions are projected to rise from about 195 million currently to approximately 350 million within the next 10 to 15 years.
The emergence of artificial intelligence and cloud computing will further intensify demand for connectivity, data centres and, critically, electricity.
This means that the infrastructure Nigeria needs to support its digital future will have to be substantially larger, more resilient and more efficiently financed than what exists today.
But stakeholders noted that increasing network capacity without addressing the other constraints could produce limited results.
From coverage to meaningful connectivity
One of the most significant observations from the forum was that network coverage is no longer the only—or even the largest—connectivity challenge facing Nigeria.
Mobile broadband already covers about 90 per cent of Nigerians. Yet smartphone ownership is estimated at only about 27 per cent, while broadband penetration stands at 57.4 per cent against a national target of 70 per cent.
The implication is profound.
A network may be available in a community, but if residents cannot afford smartphones, lack the skills to use digital services or do not trust the services available to them, coverage does not automatically translate into meaningful connectivity.
The forum therefore identified device affordability, digital skills and trust as increasingly important barriers.
This represents a shift in the way Nigeria must think about digital inclusion.
The next phase of connectivity investment cannot simply be measured by how many towers or kilometres of fibre are deployed. It must also consider whether people can actually access and use the services delivered by those networks.
Data as an investment tool
The collaboration between the NCC, Swedfund and Ookla was highlighted as an important step towards giving investors a more granular understanding of Nigeria’s connectivity landscape.
Independent connectivity data can reduce uncertainty by showing not just where infrastructure exists, but how people actually experience connectivity.
The forum proposed a practical approach: screen nationally, validate locally and verify after intervention.
For investors, such evidence can help identify areas where infrastructure investment is most needed and where interventions are likely to have the greatest economic and social impact.
The forum also recommended that the NCC publish the first national Nigeria Digital Connectivity Index report and continue developing evidence-based tools for infrastructure planning.
The power problem
Perhaps no issue emerged more strongly than power.
For telecommunications infrastructure companies, energy is no longer merely an operating expense; it is fundamental to the viability of the network itself.
The forum observed that the cost and reliability of electricity are major constraints on telecommunications deployment, particularly outside major urban centres.
The problem extends beyond telecom towers.
The cost of inland connectivity is also restricting the development of data centres and internet services to a relatively small number of metropolitan locations.
Stakeholders therefore argued that energy and connectivity investments should be planned together.
Tower clusters, for example, could serve as anchor customers for distributed renewable energy systems, creating opportunities for energy investors while improving the reliability of telecommunications infrastructure.
The forum consequently recommended the development of a financing framework for telecommunications power within 18 to 24 months, including standardised energy provision and stronger protection for telecommunications power infrastructure.
Financing infrastructure that lasts decades
Another critical issue was the mismatch between the lifespan of digital infrastructure and the tenor of available financing.
Telecommunications infrastructure can have an asset life of 20 to 30 years, yet infrastructure projects are often expected to operate with financing structures that are considerably shorter.
Participants noted that Nigeria’s infrastructure financing has grown from less than ₦70 billion in 2004 to approximately ₦19.4 trillion in 2025.
However, the availability of capital does not automatically make projects bankable.
According to the forum, investors require sound governance, capable management, predictable policies, reliable data and appropriate risk allocation before committing long-term capital.
Speaking from the investment perspective on Day One, Bolaji Balogun, Chief Executive Officer of Chapel Hill Denham, stressed the importance of investable projects, appropriate financing structures and capital-market participation in attracting long-term private and institutional investment into digital infrastructure.
His intervention reinforced one of the forum’s central conclusions: Nigeria does not merely need more money; it needs the right kind of money, structured for infrastructure with long-term asset lives.
On the second day, Bismarck Rewane, Chairman of the Board of FCMB and Managing Director of Financial Derivatives Company, examined the wider economic and financial environment for infrastructure investment.
He highlighted the importance of the cost and availability of capital, investor confidence and policy predictability, while emphasising the role of digital infrastructure in driving productivity and economic growth.
States hold a key to faster deployment
While federal policy remains important, the forum acknowledged that the speed of digital infrastructure deployment is also heavily influenced by conditions at the state level.
The pilot of the Nigeria Digital Connectivity Index across 12 states reportedly showed that Right of Way reforms can translate directly into significant fibre growth.
In states that implemented reforms, fibre growth ranged between 22 per cent and 95 per cent.
The number of states charging zero Right of Way fees has also increased from seven in December 2024 to 12.
Stakeholders consequently called on state governments to further reduce and harmonise Right of Way and site permit charges, shorten approval timelines and adopt the federal model under which the operator laying fibre is responsible for reinstating the road.
The message is that infrastructure investment can be accelerated without necessarily requiring massive public expenditure if governments remove unnecessary deployment barriers.
New models for connecting the unconnected
The forum also showcased emerging models capable of reducing the cost of extending connectivity to underserved communities.
These include shared rural networks, satellite connectivity delivered directly to unmodified handsets, micro-cabling, solar-powered rural sites and local manufacturing of devices and SIM cards.
Such innovations could significantly alter the economics of rural connectivity.
But stakeholders cautioned that technology alone will not solve the digital divide.
Even where networks can be deployed more cheaply, consumers still need affordable devices to access them.
This is why the forum recommended that operators, infrastructure companies and technology providers should combine coverage investment with initiatives that put affordable devices in the hands of users, including locally manufactured devices and SIMs.
Project BRIDGE takes centre stage
Against the background of the middle-mile connectivity gap, the forum called on the Federal Government to accelerate Project BRIDGE, the proposed 90,000-kilometre national fibre backbone.
The backbone is viewed as a strategic intervention for expanding the availability of high-capacity connectivity beyond existing metropolitan centres.
Participants also recommended the development of metro and access fibre through concession arrangements, mapped against existing infrastructure and integrated with Project BRIDGE.
The objective is to avoid unnecessary duplication while ensuring that existing and new infrastructure can operate as part of a more coherent national connectivity ecosystem.
The Universal Service Fund and rural connectivity
Rural and underserved communities remain a particular concern.
Participants agreed that within six months, stakeholders should work towards securing funding for community co-owned rural networks powered by renewable energy in communities with zero connectivity.
The proposed approach would involve collaboration among the Universal Service Provision Fund, state governments and the Rural Electrification Agency.
The forum also recommended stronger regulatory backing for the Universal Service Fund as the primary source of support for underserved-area projects, complemented by blended public and multilateral financing.
This could help shift rural connectivity from an area of limited commercial attractiveness to one where public and development finance can de-risk private participation.
The road ahead
The conclusions from the Abuja forum suggest that Nigeria’s connectivity challenge is becoming more sophisticated.
The country is no longer starting from a position of simply needing to connect the unconnected. It must now build an infrastructure ecosystem capable of supporting explosive data consumption, artificial intelligence, cloud computing, digital trade and a rapidly expanding digital economy.
That will require more than telecommunications investment.
It will require long-term capital, reliable power, transparent connectivity data, predictable regulation, affordable Right of Way, open-access infrastructure, cheaper devices and stronger partnerships between government and the private sector.
The forum’s recommendations therefore spread responsibility across the entire ecosystem.
The Federal Government is expected to accelerate Project BRIDGE, improve power availability and maintain policy consistency.
The NCC is expected to deepen regulatory reforms, publish the national Digital Connectivity Index, advance open-access and wholesale regulation and finalise the direct-to-device framework.
State governments are expected to reduce deployment costs and streamline approvals.
Operators and infrastructure companies are expected to embrace shared infrastructure and neutral-host models.
Investors and development finance institutions, meanwhile, are being encouraged to provide long-tenor naira financing, use independently verified network-performance data and deploy blended finance and credit enhancement to bring commercially marginal projects to market.
From forum to action
The most important outcome of the Nigeria Digital Connectivity Investment Forum may ultimately be whether its recommendations move beyond the conference room.
Participants recognised that the major barriers—financing costs and tenor, Right of Way and permitting, unreliable power and inadequate trusted infrastructure data—are interconnected.
Solving one without addressing the others will produce only partial results.
Nigeria’s digital future will therefore depend on the ability of government, regulators, investors, financiers and industry to work from a common set of facts and pursue coordinated solutions.
The NCC has undertaken to sustain engagement with stakeholders to advance the identified actions and investment pathways.
For a country whose data consumption is growing at nearly 47 per cent annually and whose digital economy is becoming increasingly central to national economic growth, the message from Abuja is unmistakable:
The next 25 years of Nigeria’s digital transformation will be determined not merely by how much infrastructure the country builds, but by how intelligently it finances, powers, shares and uses that infrastructure.
