Nigeria's ICT Sector Booms: N9.44tn Boost, But Digital Divide Persists
The Information and Communication Technology (ICT) sector is making waves with a staggering N9.44tn contribution to Nigeria's economy in Q3 2025, sparking intense discussions about broadband expansion. This surge in economic activity comes as various stakeholders advocate for enhanced subsea capabilities, streamlined infrastructure, and a focus on local manufacturing.
The telecommunications and information services subsector led the charge with N7.47tn, a 1.22% year-on-year growth from Q3 2024. However, this success is not without its challenges, as the Q3 performance dipped by 3.95% compared to Q2 2025. Broadcasting and motion pictures also made significant contributions, with N1.04tn and N911.77bn respectively, while publishing brought in N18.6bn. These figures highlight the sector's economic prowess, but they also expose a pressing issue: the need to bridge the digital divide.
But here's where it gets controversial: Despite these impressive numbers, Nigeria's digital landscape is far from unified. While urban hubs like Lagos enjoy stable connectivity, vast regions struggle to get online. Industry leaders argue that the nation's economic output could skyrocket if the government addressed the infrastructure gap between coastal areas and the hinterland.
Leye Kupoluyi, President of the Lagos Chamber of Commerce and Industry, emphasized the importance of broadband penetration as a vital economic tool for youth and the broader economy. He pointed out the disparity between Lagos and the hinterland, urging sub-national governments to ensure that the benefits of broadband reach every corner of Nigeria. Kupoluyi believes this is crucial for sectors like agriculture, security, and food production.
Kupoluyi also highlighted the potential of digital connectivity in agriculture, a sector employing millions of Nigerians. He argued that technological integration could significantly boost the value of Nigerian cash crops, currently at 30%. Furthermore, he suggested that a digitally connected farming system could lead to nationwide economic prosperity.
The discussion extends beyond agriculture. Kupoluyi proposed using the National Identification Number and Bank Verification Number as a foundation for a digital safety net. He criticized the government's inaction, stating that they have the data and tools to implement effective social welfare programs but lack the initiative to centralize and execute them.
And this is the part most people miss: Kupoluyi's call to action is urgent, urging the government not to delay. He believes that waiting for perfection will only hinder progress and that immediate action is necessary to improve the lives of Nigerians. This plea comes amidst concerns about Nigeria's fibre optic infrastructure, with experts questioning the country's ability to distribute its massive international data capacity effectively.
The current situation is perplexing. Nigeria receives over 360 terabits per second of capacity through eight subsea cable systems, yet fixed broadband penetration is a mere 6%. Workshop participants attributed this disparity to governance issues, fragmentation, and the lack of a unified national strategy. They noted that infrastructure reaches the coast but fails to penetrate inland.
The 'operator-by-operator' network deployment model has led to redundant and costly infrastructure clusters in major cities. For example, a single 96-core fibre deployment in Lagos costs N248m, and multiple parallel fibre runs in some areas represent wasted capital that could have been used to connect underserved regions.
To address this, operators proposed 'Project Bridge', a 90,000-kilometre national fibre backbone with an open-access principle. This approach would allow different providers to share infrastructure, reducing duplication and costs.
Dr Bosun Tijani, the Minister of Communications, Innovation and Digital Economy, responded positively, announcing the government's plan to fund 3,700 telecom towers in rural areas. This move aims to connect 23 million Nigerians lacking digital services, particularly in the North, North-Central, and North-West. Tijani acknowledged the need for government intervention in sparsely populated areas, which private operators often overlook.
However, operators in subsea cable manufacturing emphasize that infrastructure expansion requires more than just government policy. They argue for a strong local manufacturing base to reduce costs and dependency on imports. George Onafowokan, Managing Director of Coleman Wires and Cables Industries Limited, advocates for prioritizing cable infrastructure, similar to the focus on petroleum and cement.
The inauguration of the Coleman Technical Industries Limited fibre optic cable factory in Ogun State is a significant step towards this goal. As Africa's largest facility of its kind, it aligns with President Bola Tinubu's vision of a $1tn economy. Tijani praised the factory as a vital enabler for Project Bridge, allowing Nigeria to build its 90,000-kilometre fibre network more efficiently by manufacturing critical components locally.
Controversy Alert: While the government's plans are ambitious, some critics question the effectiveness of these strategies in bridging the digital divide. Will Project Bridge and the new factory truly transform Nigeria's digital landscape, or are there underlying issues that need addressing? What do you think? Is Nigeria on the right track, or is there more to be done to ensure digital inclusivity and economic growth?
