Nigeria has an ambitious digital transformation bid that is just as huge as its potential as a country. Yet, the lofty goal is hobbled by the absence of sundry basic infrastructures that are taken for granted in other parts of the world, ADEYEMI ADEPETUN writes.

While Nigeria has made strides in Internet and mobile penetration, the journey to a truly digital economy is stalled at the final stage – reaching the last mile. This is caused by a number of issues, from inadequate physical infrastructure like roads, electricity and limited access to technology in rural and underserved areas.
 
The resulting inefficiencies inflate the cost of logistics, hinder e-commerce and exclude millions of citizens from essential digital services, creating a significant bottleneck that slows progress.
 
Indeed, the insufficient last-mile infrastructure is a primary factor impeding Nigeria’s digital expansion, preventing the country from meeting its ambitious connectivity goals. Despite the significant progress in building national fibre optic backbones, the final link connecting the networks to homes and businesses remains weak, creating a major digital divide.
 
The gap is evidenced in lagging broadband penetration rates, high data costs and a heavy reliance on less reliable mobile internet.

Key statistics
The National Broadband Plan (NBP) 2020-2025 aims for 70 per cent broadband penetration by the end of 2025. However, as of July 2025, penetration stood at just 48.01 per cent, a significant shortfall. This is a troubling trajectory, with the country also missing its interim target of 50 per cent penetration by the end of 2023, achieving only 43.71 per cent by that time. Today, about 25 million people are either unserved or underserved in Nigeria.
 
Also, in a concerning trend, the number of active Internet subscribers in Nigeria has seen a notable decline. Data from the Nigerian Communications Commission (NCC) shows a drop from 163.8 million to 139.2 million between December 2023 and December 2024. This decrease, largely attributed to SIM-NIN linkage issues, highlights the fragility of the current digital ecosystem. Since the approval of the 50 per cent tariff hike for telecom operators, there has been a significant slump in the number of active telephone users in the country. In the last six months, operators have lost over 1.2 million active subscribers despite the telcos boom.
  
When the NCC approved a 50 per cent data tariff hike in January 2025, the cost of 1GB of data jumped from N287.50 to N431.25, with higher-volume bundles witnessing even steeper increases.
 
While Internet usage is growing, with consumption reaching 1.1 million terabytes in July 2025, this growth is largely driven by mobile networks. As of July 2025, only about 50.85 per cent of active subscriptions were on 4G, with 5G usage still in its infancy at just 3.17 per cent. This reliance on mobile networks for primary connectivity is a last-mile issue, as it often results in slower speeds and higher costs for consumers.
 
Findings also showed that the cost of laying fibre optic cables, the backbone of high-speed last-mile connectivity, is a major barrier. The cost of installing one kilometre can range from $5,000 to $15,000 in developing countries like Nigeria.   
  
The significant capital expenditures are exacerbated by regulatory hurdles and high right-of-way fees imposed by state governments, which slow down deployment and increase operational costs for service providers.
  
According to a telecoms expert, Kehinde Aluko, Nigeria’s diverse terrain and lack of a standardised addressing system further compound the last-mile problem.  Congested urban areas like Lagos make trenching for fibre cables difficult and expensive, while sparsely populated rural areas often lack the basic infrastructure for reliable internet access. This leads to a significant urban-rural digital divide.

Impact on economic devt
The lack of last-mile infrastructure has profound consequences on Nigeria’s digital economy, which has seen its revenues grow from $5.09 billion in 2019 to $9.97 billion in 2021. 
 
However, this growth is limited to areas with good connectivity, leaving a large portion of the population behind. The inability to connect all citizens to the digital grid means lost opportunities in e-commerce, telemedicine, job creation and others.
 
Precisely, last-mile delivery challenges, including poor road networks and a lack of a proper addressing system, slow down the growth of e-commerce. This not only frustrates consumers but also discourages businesses from expanding into underserved regions.

In rural communities far from hospitals and schools, reliable internet is essential for accessing remote healthcare and online learning. The last-mile deficit prevents these vital services from reaching those who need them most.
 
A robust digital economy relies on a skilled and connected workforce. Without widespread access to the internet, many young Nigerians are excluded from the training and entrepreneurial opportunities that online platforms provide.

The power challenge
While Nigeria’s telecom sector battles several challenges from all fronts, including vandalism, site closures, fibre cuts, multiple taxation, exorbitant Right of Way (RoW) charges, and lack of grid power, appear to be the top crisis.
 
As of today, telecom operators are said to spend 30 per cent of their operating expenditure on energy to power their over 40,000 base transceiver stations (BTS) spread across the country.
   
MTN Nigeria Chief Operating Officer, Ayham Mousa, said the lack of energy to base stations hinders quality of service, stressing that no operator jokes with low energy supply to sites.
  
Mousa, who said that while about 20 per cent to 30 per cent of expenses go into power availability across sites, stressed that 70 per cent of downtime is traceable to lack of power, increasing fibre cuts and vandalism.
  
He equally pointed to the fact that there are still challenges around operators expanding fibre infrastructure in the country, stressing that if there could be hamonisation of RoW charges, telephone services will get to the remotest part of the country.

Bridging the gap
AS part of sustainability measures, the Federal Government unveiled initiatives like Project Bridge, a $2 billion fibre expansion plan, aimed to extend the country’s network from 35,000 km to over 125,000 km, connecting all 774 local government headquarters to a fibre network.
 
Reducing the high incidences of fibre cuts in the country, which has slow last-mile connectivity, the Managing Director and Chief Executive Officer, Edo State ICT Agency (ICTA), Eghosa Urhoghide, stressed the importance of ensuring the implementation of the Dig Once Policy. He also stressed the importance of community collaboration in the protection of telecom infrastructure.
 
“It has become more urgent for governments to revisit the Dig Once Policy to ensure the safety of infrastructure across the country. This will stop incessant fibre cuts, vandalism, among others,” he stated.