Nigeria is losing an estimated $15 billion annually due to a persistent gap in broadband access, according to Lanre Ore, Chief Executive Officer of FibreOne, a prominent Nigerian broadband service provider.
Speaking through the company’s Chief Experience Officer, Yinka Isioye, at the Titans of Tech Conference 2025 in Lagos, Ore described broadband as “as essential as oxygen” and a vital enabler of modern digital economies. He highlighted its impact across various sectors, including education, healthcare, fintech, SMEs, and smart cities.
“Over 60% of Nigerians and more than 70% of Africans still lack reliable broadband access. This exclusion is costing us dearly—in GDP, innovation, jobs, and human potential,” Isioye stated.
The Cost of Limited Connectivity
Ore shared a personal anecdote about missing a significant opportunity due to poor internet, underscoring the real-world consequences of limited connectivity. He pointed out that internet speeds in Nigeria are 5–10 times slower and up to four times more expensive per megabit per second (Mbps) compared to developed markets.
Citing the World Bank, he emphasized that a 10% increase in broadband penetration can boost GDP by 1.4% in developed nations. For Nigeria, a 30% increase in broadband coverage could unlock at least $19 billion in value, with a potential GDP multiplier effect of over $45 billion annually.
“The $15 billion we lose yearly due to the broadband gap is nearly four times the nation’s combined health and education budgets. That’s equivalent to the yearly federal allocation of an entire state,” Isioye noted.
Barriers to Broadband Growth
Isioye outlined several challenges hindering broadband expansion:
- Exorbitant fiber rollout costs: These range from $30,000–$50,000 per kilometer due to civil works, Right of Way (RoW) charges, security concerns, and local levies.
- Unstable power supply: Up to 40% of Internet Service Providers’ (ISP) operating expenses (OPEX) are spent on diesel and alternative energy.
- Low Average Revenue Per User (ARPU): Nigeria’s ARPU of $10–$20 is significantly lower than the $50 in developed markets, making Return on Investment (ROI) timelines less attractive to investors.
Despite these hurdles, Isioye commended ISPs and Mobile Network Operators (MNOs) for their continued innovation and investment. He also acknowledged the efforts of the Nigerian government, led by President Bola Tinubu and Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, in steering the nation toward a digital-first economy.
Strategies for Bridging the Gap
Isioye proposed several strategies to close the broadband gap:
- Mobilize local capital: Encourage the use of pension funds and local capital for long-term broadband infrastructure financing.
- Encourage resource pooling: Promote shared rural fiber consortia and MNO/ISP resource sharing.
- Support rural delivery models: Advocate for community networks, solar-powered micro base stations, and Mobile Virtual Network Operators (MVNOs) for rural areas.
- Launch “Broadband for Jobs” schemes: Offer tax incentives to ISPs that provide discounted access to unemployed youths undergoing digital skills training.
“Broadband is not just about cables—it’s about life-changing connectivity. It empowers education, innovation, inclusion, and national transformation,” Isioye concluded.