FibreOne, a leading broadband provider in Nigeria, has revealed that the country’s significant broadband access deficit results in an estimated annual economic loss of $15 billion.
This statement was made by FibreOne’s Chief Experience Officer, Yinka Isioye, during his keynote speech at the 21st Titans of Tech Conference, Expo, and Awards held in Lagos on Friday evening, themed “Game Changers: Shaping the Future of Technology.”
Isioye underscored the vital role of broadband, likening it to oxygen and describing it as the backbone for digital advancements in sectors like education, healthcare, small and medium enterprises (SMEs), financial technology, and smart urban development.
He highlighted a stark reality: over 60% of Nigerians and 70% of Africans lack reliable broadband, excluding millions from critical opportunities. Recalling a personal experience, Isioye shared how poor internet access once cost him a pivotal job interview, illustrating the real-world impact of connectivity gaps.
He pointed out that Nigeria’s internet speeds are five to ten times slower and two to four times more expensive per megabit per second compared to global standards.
Citing World Bank data, Isioye noted that a 10% increase in broadband penetration could boost GDP growth by 1.4% in developed nations. For Nigeria, achieving an additional 30% penetration could add at least $19 billion to the economy, with a potential multiplier effect driving annual GDP growth by over $45 billion.
Isioye warned that without enhanced broadband access, over 45 million Nigerian students risk being left behind, and rural communities will continue to lack telehealth services. He also emphasized that Nigeria is missing out on billions in foreign exchange by failing to position itself as a global outsourcing hub due to inadequate connectivity.
The $15 billion annual loss from the broadband gap, Isioye noted, is nearly four times Nigeria’s combined health and education budgets and equivalent to the yearly federal allocation for one of the country’s 36 states.
He identified key barriers to broadband expansion, including the high cost of fiber deployment—ranging from $30,000 to $50,000 per kilometer—due to expenses for civil works, right-of-way fees, security, community levies, and challenging terrain. Additionally, power instability consumes 30% to 40% of providers’ operational costs, primarily for diesel and alternative energy sources.
The low Average Revenue Per User (ARPU) in Nigeria, ranging from $10 to $20 compared to $50 in advanced markets, further prolongs return on investment timelines, deterring providers.
Despite these challenges, Isioye praised Internet Service Providers (ISPs) and Mobile Network Operators (MNOs) for their resilience in expanding networks and innovating.
He also commended the Nigerian government, particularly President Bola Tinubu’s vision for a digital-first economy and the efforts of the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, in advancing supportive policies.
To address the broadband gap, Isioye proposed mobilizing pension funds and local investors for long-term financing, fostering shared rural fiber consortia, and encouraging resource pooling among MNOs and ISPs.
He also advocated for enabling Mobile Virtual Network Operators (MVNOs) to enhance rural broadband delivery, promoting community-driven networks, establishing public-private partnership WiFi zones, and scaling solar-powered micro-base stations.
Additionally, he suggested a “broadband for jobs” initiative, offering tax credits to ISPs providing discounted access to households with unemployed youth enrolled in digital skills programs.
Isioye reaffirmed FibreOne’s commitment to viewing broadband as “transformative connectivity” that drives education, innovation, healthcare, and national development. At the same event, Mr. Pedro Aganbi, convener of the Titans of Tech Conference, noted that the theme aimed to celebrate visionaries and organizations that not only adapt to change but lead it by creating smarter solutions and fostering new ways of collaboration and connectivity.
NAN
