Nigeria Requires $360 Million to Expand 4G Coverage to 98% – GSMA

Nigeria’s digital future hinges on expanding its 4G network to reach 98% of the population, a challenge estimated to require $360 million in investment. This ambitious target, outlined in the GSMA’s 2024 Year in Review report for Sub-Saharan Africa (SSA), underscores the need for financial commitment, policy reforms, and innovative connectivity solutions to bridge the digital divide in the nation.

As the heartbeat of Africa’s economy and a rising tech hub, Nigeria’s success in achieving near-universal 4G coverage could serve as a blueprint for other developing nations. However, significant hurdles remain, especially in underserved rural areas. Let’s delve deeper into the GSMA’s findings, recommendations, and Nigeria’s path forward.

Current State of 4G Coverage in Nigeria

In recent years, Nigeria has made impressive strides in expanding its 4G coverage. Back in 2019, only 41% of the country had access to 4G connectivity. Fast forward to 2024, and this figure has surged to 84%, according to GSMA data. While urban centers such as Lagos, Abuja, and Port Harcourt have benefitted immensely, rural areas remain on the fringes of this digital revolution.

Currently, only 48% of Nigeria's rural regions enjoy 4G connectivity. The GSMA attributes this disparity to challenges such as high deployment costs, lack of infrastructure, and limited access to affordable devices. These obstacles highlight the critical need for targeted investments and policy interventions to ensure equitable access across the nation.

The $360 Million Investment Gap

The GSMA estimates that Nigeria requires an additional $360 million to achieve 98% 4G coverage nationwide. This funding is essential not only to extend infrastructure to rural and hard-to-reach areas but also to ensure seamless connectivity for the majority of Nigerians.

While the $360 million figure might appear steep, the potential economic and social returns far outweigh the initial cost. Greater 4G coverage means improved access to education, healthcare, financial services, and entrepreneurial opportunities. Moreover, enhanced connectivity can accelerate Nigeria’s digital transformation, creating a ripple effect across all sectors of the economy.

For the remaining 2% of the population living in remote, sparsely populated areas, alternative technologies such as satellite internet may provide a viable solution. These complementary approaches could help bridge the final connectivity gaps without requiring extensive infrastructure investments.

Policy Reforms: The Key to Unlocking Investment

One of the most striking insights from the GSMA report is the transformative potential of policy reforms. The association estimates that eliminating sector-specific taxes on telecom infrastructure and removing retail price regulations could shrink the investment gap by 44%, reducing the required funding from $360 million to $200 million.

These changes would incentivize private sector investments, lower operating costs for telecom operators, and make it more financially feasible to expand into rural areas. Additionally, improving right-of-way approvals and simplifying bureaucratic processes could further accelerate infrastructure deployment.

Countries with more supportive policy frameworks, such as Kenya and South Africa, have demonstrated the significant benefits of proactive governance in driving mobile broadband adoption. Nigeria has an opportunity to follow suit by prioritizing reforms that foster investment and innovation.

Demand-Driven Solutions: Bridging the Accessibility Gap

Beyond infrastructure, addressing demand-side barriers is equally critical to achieving 98% 4G coverage. Affordability remains a major challenge for millions of Nigerians who lack access to 4G-enabled devices or struggle to afford mobile data plans.

The GSMA emphasizes the need for measures that make 4G devices more accessible and affordable. Subsidies, tax exemptions on mobile devices, and partnerships with manufacturers could help bring down costs, enabling more Nigerians to adopt 4G technology.

Educational campaigns and digital literacy programs can also play a pivotal role in increasing adoption rates. By highlighting the benefits of mobile broadband and teaching people how to use digital tools effectively, Nigeria can maximize the societal impact of its connectivity expansion efforts.

The Role of Telecom Operators in Driving Expansion

Telecom operators in Nigeria, such as MTN, Airtel, Globacom, and 9mobile, are central to the nation’s 4G expansion efforts. These companies have invested heavily in network infrastructure over the years, but they face numerous challenges, including high operating costs, regulatory hurdles, and limited access to foreign exchange.

Collaboration between the public and private sectors is essential to overcoming these obstacles. Public-private partnerships (PPPs) could help bridge funding gaps, while streamlined regulations could reduce operational inefficiencies for telecom operators.

Additionally, exploring innovative financing models, such as shared infrastructure agreements, could enable operators to extend their networks more cost-effectively.

Lessons from GSMA’s Digital Africa Index

The GSMA’s Digital Africa Index offers valuable insights into the factors that drive digital progress across the continent. Countries like Kenya, Mauritius, and South Africa, which scored above 50 on the index, have implemented forward-thinking policies that encourage mobile broadband adoption and digital innovation.

Nigeria, with a score below 50, has significant room for improvement. By adopting best practices from high-scoring countries, Nigeria can accelerate its digital transformation and enhance its competitiveness in the global economy.

Key lessons include:

• Prioritizing affordable access to broadband.
• Encouraging investment through supportive policies.
• Strengthening digital literacy and inclusion initiatives.
• Fostering innovation through public and private collaboration.

Looking Ahead: The Road to 98% Coverage

Achieving 98% 4G coverage in Nigeria is an ambitious but attainable goal. It requires a multi-faceted approach that combines infrastructure investments, policy reforms, and demand-driven initiatives.

Collaboration will be key to success. The Nigerian government, telecom operators, international organizations, and private investors must work together to address the financial, regulatory, and technological challenges that lie ahead.

Ultimately, the expansion of 4G coverage is not just about connectivity—it’s about empowering millions of Nigerians to participate fully in the digital economy, unlocking new opportunities, and improving quality of life across the nation.