Nigeria Digital-Bold Infrastructure Development

Nigeria Digital-Bold Infrastructure Development by Dr Kenny Odugbemi

According to published research studies, current trends indicate a significant leap forward in internet penetration, mobile connectivity, and the adoption of cloud services across Nigeria and the African continent.

Availability of affordable smartphones, coupled with the on-going expansion of fibre-optic networks and the deployment of undersea cables, by our Mobile network operator-
*MTN,
*Glo,
*9mobile
*Airtel
*Private operator MainoneCable etc

All have paved the way for increased connectivity in previously underserved regions. 

There is a lot of work yet to be done, however – especially to further expand mobile networks, increase and improve fibre links, and build data centre capacity. 

According to a report by the IFC and Google, Nigeria’s internet economy is largely overlooked investment opportunities available, with a potential to add US$650m to Nigeria’s GDP by 2027

Nigeria’s digital economy has long been a focus area for development partners and local investors with recent content digital trade strategies and the powerful role of technology to help bridge the gender gap.

Nigeria’s digital infrastructure opportunity, highlighting investment opportunities in the sector along with current trends, persistent challenges, and market intelligence from Nigeria’s mobile network operator

Connecting Nigeria – Africa’s Continent – A World Where There Are Aboundance Opportunities

Internet usage in Nigeria has increased to 38% today. to reach 40% in 2027

With Nigeria’s population projected to reach 400m people by 2050, the demand for digital services is expected to soar. 

Expanding mobile networks, increasing and improving fibre links, and building data centre capacity present some of the greatest investment opportunities in digital infrastructure across Nigeria

These specific sectorial segmentations offer significant potential for growth and are essential for driving connectivity, data storage, and processing capabilities on the continent.

Additionally, the Nigeria Data Centres Association highlights the need for data centres to support the growing digital ecosystem, stating that “Nigeria requires at least 50 additional data centres by 2025.” Investing in mobile network expansion, fibre infrastructure, and data centres is not only necessary to meet the increasing demand for connectivity, but also to facilitate the development of a robust digital economy, unlock new business opportunities, and bridge the digital divide by providing access to digital services and information for underserved populations. Numerous challenges persist, however. 

African Continent perspectives
According to the World Bank, achieving universal, good-quality internet access across Africa will require investments of $100 billion, 80 percent of which is needed for core infrastructure to establish and maintain broadband networks. 

This includes 250,000 new 4G base stations, at least 250,000 kilometres of fibre, and migration to 5G, which, in turn, could dramatically increase the need for data centres.

While investors are increasingly aware of and interested in opportunities within digital infrastructure across Africa, investment levels today are insufficient to meet the growing demand.

The confusing web of regulatory environments across the continent poses another challenge.

The inconsistent regulatory frameworks in Nigeria remain a major challenge for cross-border connectivity and regional integration.”

✓Inconsistent regulations create barriers for digital infrastructure providers and investors, leading to delays in infrastructure deployment and hampering cross-border connectivity initiatives. 

✓lack of regulatory coherence stifles innovation, investment, and the overall growth of the digital economy in Nigeria, limiting the potential for digital inclusion and economic development on a broader scale.

Nigeria’s digital infrastructure landscape also faces clear deficits, including a lack of reliable electricity, which severely impacts the deployment and operation of digital infrastructure.

According to a recent report, approximately 80 million people in Nigeria lack access to electricity, making it challenging to sustain the necessary power supply for digital networks and data centres. 

Without a stable electricity infrastructure, the expansion and optimisation of digital services have become constrained, impeding economic development and digital inclusion across the continent.

Conclusion
5G penetration in Nigeria is less than 2%
We need additional 60,000km optical fiber network
With an audacious human building capacity of 3million techpreneurs by 2027, will require the support of Development partners and private investors
It is advisable for the present government to adopt PPP initiatives and facilitation of DFI’s to the tune of $650m as capital injection spread over 4years
Telco’s and digital innovation schemes leveraging the following
✓Knowledge
✓Policy review and recalibration
✓infrastructure development
✓Facilitation of trade and investment in Nigeria taking advantage of AFCTA will provide more digital penetration through Africa subregion
Nigeria will now be fully digitized to promote access, availability, and reliability on digital platforms with the adoption of technology tools AI, Robotics, sequencing, Blockchain and convergence between these tools will bring us closer to the 4th industrial revolution to activate $1trn economy in the next decade