Economy

Broadband Penetration Rises to 43.53% in Nigeria, Says NCC

Nigeria’s digital landscape has transformed in the past five years with monthly internet usage soaring by an astonishing 501.99%.

The surge in online activity, driven primarily by the proliferation of streaming services and other digital platforms, has bolstered the country’s internet usage.

According to data from the Nigerian Communication Commission (NCC), monthly internet usage has surged from 125,149.86 terabytes (TB) in December 2019 to 753,388.77 TB as of March 2024.

This exponential growth reflects a fundamental shift in how Nigerians access and consume information, entertainment, and services.

The COVID-19 pandemic acted as a catalyst for this surge in internet usage, as lockdowns and social distancing measures compelled individuals and businesses to rely heavily on online platforms for work, education, and social interactions.

Video conferencing, online learning, and virtual events became the norm, driving up demand for internet access across the country.

“The year 2020 witnessed a significant surge in data usage… The increase in data usage is directly linked to the outbreak of the COVID-19 pandemic, which disrupted normal activities, and most functions had to be held virtually including schools, corporate meetings, etc.,” stated the NCC in its 2020 industry report.

Streaming services emerged as a major driver of internet consumption, with platforms like YouTube, Netflix, and Spotify experiencing a surge in users.

Adetutu Laditan, Senior Product Marketing Manager for Sub-Saharan Africa at YouTube, noted, “We have a lot more users coming online and consuming more content… Trends are changing; digital is here to stay… For instance, more Nigerians are watching Nollywood movies on YouTube.”

The shift towards digital consumption was further fueled by the availability of a vast library of free content on the internet.

Nigerians, both young and old, have embraced online platforms for entertainment, education, and communication, contributing to the exponential growth in internet usage.

Karl Toriola, the CEO of MTN Nigeria, highlighted the changing consumption patterns, stating, “A lot of people are shifting their consumption from traditional voice and circuit switch services to data services…”

According to GSMA, 85% of Nigerians on mobile internet use it for video calls, 75% for watching online videos, and 54% for listening to music online.

The surge in internet consumption has not only transformed the way Nigerians interact with the digital world but also presented significant opportunities for economic growth.

The information and communications technology sector, buoyed by increased data service consumption, has remained resilient even during periods of economic uncertainty.

Despite the growth in internet usage, challenges persist, including broadband penetration below 50%, urban-rural disparities in internet access, and fluctuating internet speeds.

Also, the high cost of smartphones remains a barrier to many Nigerians, hindering widespread adoption of digital technologies.

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