The NCC says rising consumption, AI and cloud computing are putting fresh pressure on Nigeria’s networks, power supply and digital infrastructure.

Nigeria’s data consumption rose by almost 47 per cent in one year to about 1.66 million terabytes in July 2026, with the Nigerian Communications Commission warning that demand is now outpacing network capacity.

The figure rose from 1.13 million terabytes in July 2025, according to NCC data. The regulator said the surge underscores the need for sustained investment to expand and modernise networks and improve service quality.

The development was highlighted in a communiqué issued after the Nigeria Digital Connectivity Investment Forum, held in Abuja on September 29 and 30.

The forum, organised by the NCC in partnership with Swedfund and Ookla, brought together policymakers, investors, telecommunications operators, infrastructure providers and development finance institutions to examine investment needs and barriers to digital infrastructure deployment.

Nigeria’s data demand is outgrowing networks

Participants at the forum projected that telecommunications subscriptions could rise from about 195 million to 350 million within the next 10 to 15 years.

The NCC said the expected expansion of cloud computing and artificial intelligence would put additional pressure on telecommunications networks, data centres and electricity supply.

“Cloud computing and artificial intelligence will place further demand on networks, data centres and, above all, power,” the communiqué said.

The growing demand comes as telecommunications and information services continue to play a significant role in the Nigerian economy.

The sector accounted for 9.72 per cent of Nigeria’s real GDP in the second quarter of 2026, according to National Bureau of Statistics figures cited at the forum. The subsector grew by 10.38 per cent year-on-year during the quarter.

But the expansion in demand is exposing weaknesses beyond network coverage.

Power, fibre and affordability remain major barriers

The NCC said participants identified unreliable power supply and inadequate middle-mile connectivity as major constraints to digital infrastructure deployment.

Middle-mile infrastructure connects major network backbones to local access networks, making it critical for extending reliable broadband beyond major metropolitan centres.

The commission said mobile broadband currently covers about 90 per cent of Nigerians, but smartphone ownership is only about 27 per cent, while broadband penetration stands at 57.4 per cent against a national target of 70 per cent.

Participants identified device affordability, digital skills and trust as major barriers to wider adoption, noting that expanding network coverage alone would not close Nigeria’s digital divide.

The forum also highlighted the financing challenge. Digital infrastructure typically has an asset life of 20 to 30 years, while available financing often comes with shorter repayment periods.

Participants therefore called on investors and development finance institutions to match long-life digital infrastructure projects with longer-tenor naira financing.

NCC pushes Project BRIDGE, cheaper deployment

The commission said participants recommended that the Federal Government accelerate Project BRIDGE, the proposed 90,000-kilometre national fibre backbone, to address gaps in middle-mile connectivity.

They also called for more reliable power, policy consistency and financing structures capable of reducing the cost of capital for telecommunications infrastructure.

State governments were urged to harmonise and reduce right-of-way and site permit charges and shorten approval timelines.

According to the NCC, a pilot of the Nigeria Digital Connectivity Index across 12 states found that right-of-way reforms were associated with fibre growth of between 22 per cent and 95 per cent in states that implemented the reforms.

The commission said 12 states now charge zero right-of-way fees, up from seven in December 2024.

The forum also agreed on measures to expand connectivity in underserved communities, including community-owned renewable-powered rural networks involving the Universal Service Provision Fund, state governments and the Rural Electrification Agency.

The NCC said stakeholders expect funding for the rural network projects to be secured within six months, while open-access and wholesale regulation, broadband mapping and a wholesale rate card are expected within six to 18 months.

A financing framework for telecommunications power is expected within 18 to 24 months.

The commission said it would continue working with stakeholders to advance the investment pathways identified at the forum.