Nigeria is losing an estimated $15 billion every year due to a persistent broadband infrastructure gap, according to Yinka Isioye, Chief Experience Officer of FibreOne, the country’s largest fiber to the home broadband provider.
Speaking at the 21st Titans of Tech Conference held in Lagos, Isioye emphasized that the broadband shortfall poses a significant barrier to national development, affecting productivity, education, healthcare delivery, digital inclusion, and economic growth.
“This annual loss is nearly four times the combined budgets for education and healthcare in Nigeria. It is equivalent to what each of Nigeria’s 36 states receives as federal allocation,” Isioye said.
A Widening Digital Divide
Currently, over 60 percent of Nigerians and more than 70 percent of Africans lack reliable broadband access. Among those most affected are students, with approximately 45 million Nigerian learners unable to access adequate digital learning platforms.
Internet access in Nigeria remains five to ten times slower and two to four times more expensive per Mbps compared to developed economies. According to the World Bank, a 10 percent increase in broadband penetration can boost GDP growth by 1.4 percent. In Nigeria’s case, bridging the gap could unlock over $19 billion in digital value and generate as much as $45 billion in annual GDP growth.
Infrastructure and Investment Challenges
Isioye identified several obstacles hampering broadband expansion:
High deployment costs, with fiber rollout averaging $30,000 to $50,000 per kilometer
Power instability, with operators spending up to 40 percent of operational costs on diesel and energy
Low average revenue per user (ARPU), with Nigerians spending only $10 to $20 monthly on internet services, compared to $50 or more in advanced markets
These factors, Isioye said, extend the timeline for return on investment and make infrastructure rollouts in underserved areas economically unviable without strategic interventions.
Roadmap for Digital Transformation
To address the broadband deficit, Isioye proposed a multi-pronged strategy:
Long-term local financing, including mobilization of pension funds and domestic investors
Shared rural infrastructure, such as consortia led fiber deployments and community WiFi networks
Solar powered base stations and micro networks to ensure reliable service in off-grid regions
Incentivized broadband for jobs programs, offering tax breaks to ISPs serving unemployed youth enrolled in digital training
“Broadband is no longer a luxury. It is a fundamental enabler of socioeconomic inclusion and progress,” Isioye stated. “We must treat it as essential national infrastructure.”
Government Support and Global Backing
Isioye commended the Federal Government’s commitment to building a digital first economy under the leadership of President Bola Tinubu, and praised the proactive policy direction of Minister of Communications, Innovation, and Digital Economy, Bosun Tijani.
In a related development, the World Bank has pledged to support Nigeria’s digital transformation through the deployment of 90,000 kilometers of fiber optic cables, as part of broader investments in infrastructure and human capital development.
Conclusion
As the digital economy becomes increasingly central to national competitiveness, Nigeria’s broadband challenge represents both a critical risk and a powerful opportunity. Bridging this gap, experts say, will require not just policy intent but bold investments, collaborative infrastructure models, and a shared commitment to inclusive digital access.
