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Technology | Mobile Money and Telcos

Modest Growth in Broadband Penetration

Mar 08, 2023   •   by   •   Source: FBNQuest   •   eye-icon 200 views

Our chart today, drawn using data from the Nigerian Communications Commission (NCC), shows modest growth in Nigeria’s broadband subscriptions in Dec ’22. The considerable progress seen in recent years in terms of mobile broadband penetration can be largely attributed to significant investments made in the development of fixed broadband infrastructure across the country by the network providers. According to NCC, mobile broadband accounts for a dominant share (over 99%) of Nigeria’s broadband connections due to the ease and relatively low cost of acquiring mobile lines. As such, the growth in broadband connections broadly mirrors the increase in mobile internet subscriptions, and by extension, active mobile subscribers.

 

According to the report, total broadband connections increased by 2% m/m and 16% y/y to about 90 million in Dec ‘22.

 

The figure represents a penetration rate of 47.4%, compared with 46.2% in Nov ’22.

 

The steady growth in broadband penetration is laudable due to its beneficial effects on economic activity, particularly in sectors like e-commerce, fintech, and education.

 

The International Telecommunication Union (ITU) estimates that a 10% increase in broadband penetration will lead to additional GDP growth of 2.0% and 1.8% for low- and middle-income countries, respectively.

 

Based on the Nigerian National Broadband Plan 2020-2025, the government seeks to achieve 90% population coverage and broadband penetration of 70% by 2025.

 

The plan also seeks to deliver data download speeds across the country of a minimum of 25mbps in urban areas and 10mbps in rural areas.

 

According to the plan, the government projects a broadband penetration rate of 50% by 2023.

 

Given the steady growth in mobile penetration, we see the government delivering on this penetration target this year.

 

Although the progress made in enhancing broadband access is commendable, there remains significant ground for the federal government to cover in terms of its policy implementation target.

 

 

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