Minister of Communications, Innovation and Digital Economy, Bosun Tijani, announced a $2 billion broadband initiative at the 31st Nigerian Economic Summit in Abuja, aimed at expanding Nigeria’s digital infrastructure and positioning the country as Africa’s next global tech hub.
Project Highlights
- Coverage Goal: Universal broadband access across all 774 local government areas within 3 years.
- Funding Model: Hybrid financing 49% government, 51% private sector.
- Partners: Supported by the World Bank, IFC, and Africa Finance Corporation.
- Classification: Broadband to be declared a national critical infrastructure, attracting private investment and lowering telecom operational costs.
Economic and Social Impact
- ICT sector currently contributes 15% to Nigeria’s GDP, one of the highest in sub-Saharan Africa.
- Broadband penetration is about 50%, leaving millions offline.
- World Bank data shows a 10% increase in broadband access can boost GDP by up to 2% annually.
- Improving rural broadband could add up to $25 billion annually to Nigeria’s agricultural output.
- The government’s 3 Million Technical Talent (3MTT) programme is training digital workers in AI, cloud, cybersecurity, and data analytics.
- Nigeria’s broadband gap currently costs the economy $15 billion annually due to slower speeds, higher costs, and limited access.
Challenges Identified
- High fiber deployment costs (up to $50,000 per kilometer).
- Unreliable power supply leading to 30–40% of operating costs spent on energy.
- Low average revenue per user (ARPU) at $10–$20 compared to $50 in developed markets.
- Over 45 million students at risk of exclusion from digital learning due to connectivity gaps.
- Rural telehealth access remains limited.
Why This Matters
- Connectivity as a foundation for productivity and economic growth.
- Digital infrastructure is key to Nigeria’s vision of a prosperous, inclusive economy by 2030.
- Broadband expansion will empower small businesses, entrepreneurs, and communities to engage in the digital economy.
- This initiative exemplifies effective public-private partnerships driving national development.
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