Nigeria’s Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, says the new $2 billion broadband project will expand the country’s economy and position it as Africa’s next global technology hub.
Speaking during the plenary session on Smart Growth, Digital Leap hosted by IHS Towers at the 31st Nigerian Economic Summit in Abuja, Tijani said the project would drive digital inclusion and unlock the nation’s long-anticipated digital wealth.
Tijani explained that the plan, which adopts a hybrid financing model of 49% government and 51% private sector funding, aims to deliver universal broadband coverage across all 774 local government areas within three years.
“Connectivity is not optional. It’s the foundation of productivity,” he said.
He noted that, according to the National Bureau of Statistics (NBS), the ICT sector currently contributes around 15% to Nigeria’s GDP, one of the highest in sub-Saharan Africa. Despite this, broadband penetration remains around 50%, leaving millions of Nigerians offline.
He noted that a 10% rise in broadband access could raise GDP by up to 2% annually, citing World Bank data on the link between digital access and economic growth.
Project partners
The two-billion-dollar broadband plan, Tijani said, is supported by the World Bank, International Finance Corporation (IFC), and the Africa Finance Corporation (AFC).
He added that the project would classify broadband as national critical infrastructure to fast-track private investment and lower operational costs for telecom operators.
He also pointed to the IHS Towers innovation hub project as an example of how public-private partnerships can transform Nigeria’s digital economy. The hub, according to him, is expected to train thousands of young Nigerians, offer incubation spaces, and connect startups to global investors.
Economic impact
Tijani said the benefits of the broadband project will cut across multiple sectors beyond technology.
- He referenced estimates suggesting that improving rural broadband access could add up to $25 billion annually to Nigeria’s agricultural output, helping the country diversify its exports.
- The minister added that through the government’s 3 Million Technical Talent (3MTT) programme, digital workers are being trained in Artificial Intelligence (AI), cloud computing, cybersecurity, and data analytics, with about 4% focusing exclusively on AI.
He commended President Bola Tinubu’s administration for repositioning broadband as essential infrastructure through tariff reforms and clearer regulations to attract investment.
The Chief Executive Officer of IHS Nigeria, Mr. Mohamad Darwish, said Nigeria’s digital landscape continues to show strong growth potential despite ongoing infrastructure and skills challenges.
“Today, our country stands tall as Africa’s most vibrant startup ecosystem and one of the world’s leading creative communities,” Darwish said.
He explained that Nigeria’s progress in internet access has transformed how small businesses, entrepreneurs, and creators operate, fuelling e-commerce, agency banking, and mobile payments.
However, Darwish noted that infrastructure gaps, unreliable power supply, and uneven digital literacy still slow progress. He said bridging this divide would require sustained collaboration between government and the private sector.
Darwish said expanding broadband coverage, combined with community-based digital skills programmes, could empower more Nigerians to participate in the digital economy.
“We cannot build a prosperous and inclusive Nigeria by 2030 without digital technology at its core,” Darwish said.
He stressed that digital infrastructure, innovation, and talent must be treated as the foundation of a modern economy capable of sustaining long-term development.
What you should know
Yinka Isioye, Chief Experience Officer of FibreOne, one of Nigeria’s major broadband providers, stated that Nigeria’s broadband gap costs the country $15 billion annually, with slower speeds and higher costs for internet access being key symptoms of that deficit.
Citing World Bank data, he noted that a 10% increase in broadband penetration could generate up to 1.4% GDP growth in developed countries. For Nigeria, he projected that an additional 30% broadband coverage could unlock $19 billion in economic value and boost annual GDP growth by over $45 billion.
Beyond the economic loss, Isioye warned that over 45 million students risk being excluded from digital learning, while limited access to telehealth continues to affect rural populations. He further revealed that the $15 billion broadband deficit is nearly four times Nigeria’s combined health and education budgets.
He identified major obstacles to broadband expansion, including fiber deployment costs of up to $50,000 per kilometer, power instability—where 30–40% of operational expenses go to energy—and Nigeria’s low Average Revenue Per User (ARPU) of $10–$20, compared to about $50 in developed markets.
