By Damilola Fatunmise
Nigeria’s telecommunication sector has evolved into a cornerstone of the nation’s economic framework, driving growth, innovation, and digital inclusion. As the country embraces the Fourth Industrial Revolution (4IR), robust telecommunication networks, particularly 4G and 5G infrastructure, are pivotal for ensuring economic competitiveness, improving connectivity, and enhancing quality of life. In this piece we spotlight the current trends of telecommunications in Nigeria and the evolving role in shaping the nations economy and development with expert opinion provided by Anu Collins.
According to the Nigerian Communications Commission (NCC), Nigeria has over 220 million active mobile subscribers and more than 156 million internet users as of 2024, reflecting a penetration rate of over 80%. This impressive adoption is underpinned by investments in 4G networks, with ongoing rollout of 5G technology promising faster speeds, lower latency, and improved capacity.
Anu Collins, a telecommunications and networking expert with over 12 years of experience, highlights the critical role of these advancements in enabling economic transformation. “The deployment of 5G networks can catalyze sectors such as health, education, agriculture, and transport through high-speed internet and massive connectivity. However, achieving this potential requires addressing persistent challenges in infrastructure, affordability, and regulatory frameworks,” he notes.
Enhanced connectivity has facilitated the rise of digital businesses, including fintech, e-commerce, and remote work. Nigeria’s booming startup ecosystem, valued at over $1.8 billion in 2023, benefits significantly from improved network reliability and speed. The adoption of 5G will further revolutionize industries by enabling technologies like cloud computing, Internet of Things (IoT), and artificial intelligence (AI).
Telecommunication networks are integral to intelligent transport systems (ITS), ride-hailing services, and traffic management. Real-time data from connected vehicles and IoT devices can improve logistics efficiency and urban planning, reducing congestion and fuel consumption. The Fourth Industrial Revolution depends on a digitally enabled economy. With 5G networks, Nigeria can implement smart manufacturing, automation, and digital twin technologies, driving industrial productivity. Anu Collins emphasizes, “The transition to 5G is critical for Nigeria to compete on a global scale, especially in sectors like agriculture, where precision farming and drones rely on stable, high-speed networks.”
Despite the progress, significant hurdles remain. Rural areas are often underserved due to the high cost of deploying network infrastructure. Frequent power outages hamper network operations, increasing reliance on costly diesel generators. The cost of 5G-compatible devices and data plans limits accessibility for many Nigerians. Inconsistent policies and excessive taxation on telecom operators deter investment in advanced technologies.
To harness the full potential of telecommunication networks, the following actions are recommended: Government and private sector collaboration can expand fiber-optic networks and base stations, especially in underserved regions. Investing in solar and wind energy can mitigate power issues, ensuring consistent network performance. Streamlining regulations and offering tax incentives can attract foreign and local investments in 5G technology. Enhancing public knowledge about the benefits and uses of 5G can increase adoption rates. Telecom operators should develop flexible data plans and promote local manufacturing of 5G-enabled devices to reduce costs.
Nigeria’s telecommunication networks hold the key to unlocking its economic potential in the digital era. By addressing infrastructural and regulatory challenges, the nation can pave the way for widespread 5G adoption and sustainable development. As Anu Collins aptly states, “Nigeria stands at the cusp of a digital revolution. Strategic investments and innovative approaches to telecommunications will not only bridge the digital divide but also position the country as a leader in Africa’s 4IR journey.” With coordinated efforts, the transformative power of telecommunications can drive Nigeria toward a future of inclusive growth and prosperity.