Telecom Operators Drive 4G and 5G Adoption in Nigeria through Infrastructure Investments

Telecom giants MTN and Airtel are spearheading substantial infrastructure investments in Nigeria, resulting in a rapid transition of more Nigerians to 4G and 5G networks. MTN Nigeria’s CEO, Karl Toriola, shared in a recent investor call that the company has experienced a 2.7% surge in the number of 4G sites, pushing the 4G adoption rate among users from 79.1% to 81.5%.

MTN’s 5G sites have seen remarkable growth, soaring from 588 to 2,106, significantly boosting 5G usage from 3.1% to 11.3%. Concurrently, Airtel has introduced its 5G networks in major cities like Lagos and Abeokuta, presently undergoing testing in Oshogbo.

Regulatory documents from MTN Nigeria and Airtel Africa reveal a combined investment of ₦613 billion in expanding their 4G and 5G networks by the end of 2022. MTN allocated ₦504.33 billion to network development, while Airtel invested ₦108.79 billion during the same period. This surge in infrastructure investments aligns with an increased availability of smartphones compatible with 4G and 5G networks, as highlighted by a 12% rise in smartphone deliveries to Africa reported by Canalys in 2023.

By January 2024, TECNO emerged as the dominant smartphone brand in the market, securing a 26.03% share. Infinix, another brand under the same parent company, closely followed with a 20.88% share. Samsung claimed the third position with an 11.43% market share, while Apple maintained the fourth spot, capturing 9.66% of the market.

Data from the Nigerian Communications Commission (NCC) as of December 2023 indicated that 5G subscriptions constituted 1.04% of internet users in Nigeria, while 31.33% utilized 4G. The report further revealed 2.18 million subscriptions to 3G, with 2G maintaining dominance at 57.84% of mobile internet subscriptions, despite a decline in usage.

Despite challenges such as supply chain disruptions and inflation leading to a 30% increase in smartphone prices, the uptake of 4G and 5G subscriptions continues to rise. Collaborations between telecom companies, asset financing firms, and smartphone manufacturers have introduced flexible financing options to alleviate economic pressures.

The collaboration between Airtel and iTel, for instance, is facilitating access to affordably priced smartphones for customers. Sam Adeoye, the head of public relations at Airtel Nigeria, highlighted that these agreements enable the acquisition of 4G/5G devices and routers. Aisha Husseini, founder of Keza Africa, a device financing startup, emphasized the increasing interest in smartphone financing, driven by rising inflation in Nigeria. Even individuals who previously would not have considered device financing are now opting for it due to the depreciation of the naira.

The concerted efforts of telecom operators, coupled with strategic investments and collaborative initiatives, are reshaping Nigeria’s telecommunications landscape. The surge in 4G and 5G adoption, despite challenges, underlines the industry’s resilience and adaptability, ultimately enhancing connectivity and digital access for Nigerians.