Broadband Penetration Stalls At 45.61% With Months Left To 2025 Deadline | Investors King
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Broadband Penetration Stalls at 45.61% With Months Left to 2025 Deadline

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Nigeria’s broadband expansion effort faces huge shortfalls as data from the Nigerian Communications Commission (NCC) confirms that broadband penetration stood at 45.61% in January 2025.

The figure falls far below the 70% target outlined in the National Broadband Plan 2020–2025, with only a few months remaining before the deadline.

Since April 2020, when penetration was recorded at 39.54%, the growth of slightly above six percentage points in nearly five years reflects slow execution across infrastructure, investment, and policy coordination.

The Association of Telecommunications Companies of Nigeria stated that the penetration figure fails to reflect actual user experience due to limited service quality and infrastructure reach.

Poor voice and data service in many regions point to deeper operational challenges.

Stakeholders maintain that the current infrastructure footprint is insufficient to drive universal access as deployment of inland fibre remains low, while most rural areas depend on outdated technologies or remain entirely unconnected.

The Association of Licensed Telecom Operators of Nigeria identified high operating costs regulatory inefficiencies and multiple taxation as key constraints.

Operators continue to face delays in obtaining Right-of-Way permits and challenges related to forex availability which limits capital expenditure on equipment and network expansion.

Despite the 2022 formation of an industry-wide committee to implement the National Communications Backbone initiative, progress has been limited. Investors remain cautious due to a lack of policy clarity and prolonged structural constraints.

Experts argue that achieving nationwide broadband coverage requires significant private sector involvement supported by targeted public sector reforms.

Without regulatory adjustments and reliable infrastructure incentives the sector is unlikely to attract the capital required to close the gap before the end of 2025.

Nigeria’s macroeconomic environment remains a critical factor. Inflationary pressure, currency instability and energy costs continue to strain telecom operators.

In rural areas, operators still depend on diesel-powered infrastructure, resulting in unsustainable operational models.

Analysts warn that broadband targets without consistent investment and measurable service quality indicators are insufficient.

A national infrastructure-sharing policy and lower sectoral levies could help reduce duplication and enable wider network coverage especially in underserved areas.

The current outlook suggests that unless coordinated action is taken across all levels of government and industry the broadband penetration goal will remain unachieved.

Failure to meet the target may hinder Nigeria’s broader digital economy objectives, including remote education, e-commerce growth and inclusive innovation.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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