Nigeria’s digital economy is expanding at a pace few sectors can match, driven by surging data consumption, fintech innovation, streaming, cloud services, and a rapidly growing base of mobile internet users. From startups building AI-powered products to millions of Nigerians relying on smartphones for work, commerce, and entertainment, digital infrastructure has become central to economic growth. But as demand accelerates, a critical question is emerging: is Nigeria’s spectrum capacity ready for the next wave?
Spectrum — the radio frequencies that enable mobile communication — is the invisible backbone of the digital economy. In Nigeria, rising smartphone penetration and cheaper data plans have pushed mobile networks to their limits. The Nigerian Communications Commission (NCC) estimates that mobile data traffic has more than doubled in the past five years, fuelled by video streaming, social media, mobile payments, and remote work.
Yet network quality remains uneven. Users frequently complain about slow speeds, dropped calls, and congestion, especially in densely populated urban centres. Industry experts argue that the challenge is not just infrastructure like fibre and towers, but also access to sufficient, affordable spectrum. Without enough spectrum, even the most advanced network equipment struggles to deliver consistent performance.
Nigeria has taken steps to address the issue. The auction of 3.5GHz spectrum licences in 2021 was a major milestone, paving the way for 5G deployment by operators such as MTN and Mafab. Since then, 5G coverage has expanded gradually, promising faster speeds and lower latency for businesses and consumers. However, adoption remains limited, partly due to device costs and the still-narrow footprint of 5G networks.
At the same time, older spectrum bands used for 2G, 3G, and 4G remain heavily congested. Analysts say refarming underutilised spectrum, releasing more mid-band frequencies, and ensuring fair pricing will be crucial to sustaining growth. High spectrum fees, they warn, can discourage investment and ultimately raise costs for consumers.
The stakes are high. Nigeria’s digital economy contributed over 18% to GDP in 2023, according to official figures, and policymakers see it as a key driver of jobs and exports. Emerging technologies such as AI, the Internet of Things, and cloud computing will further increase demand for reliable, high-capacity networks.
Whether Nigeria can fully capitalise on this momentum may depend on how quickly regulators and operators align on spectrum strategy. As the digital economy scales, spectrum readiness will determine not just network speeds, but the country’s ability to compete in an increasingly connected global economy.
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