A new report has revealed that as 5G-enabled devices flood the market, the infrastructure to support them remains inadequate, threatening the country's digital transformation goals.
In urban centers like Lagos, Abuja and Port Harcourt, Nigerians are purchasing 5G-enabled smartphones at an unprecedented rate.
A global forecast projects 5G device sales to grow by 13.2 percent in 2025, followed by 16 percent growth in 2024.
In the Middle East and Africa region, smartphone shipments increased by three percent year-on-year in the second quarter (Q2) of 2025, due to promotions and improving economic conditions.
Affordable 5G-compatible phones from brands like Xiaomi and Samsung now account for almost half of new smartphone purchases in Nigeria.
However, the ground reality tells a different story. Only 12.7 percent of Nigeria's mobile towers are 5G-capable, and coverage is limited to select urban areas, leaving rural areas and even some state capitals disconnected.
The Nigerian Communications Commission (NCC) estimates that 5G services reach less than five percent of the population, compared to 45 percent for 4G.
A recent NCC-Ookla study revealed a 70.9 percent 5G coverage gap in Lagos, where 41,057 5G-enabled devices were detected but unable to connect to the 5G network. In Abuja, the 65.6 percent difference affects 16,143 devices.
The implications for Nigeria's digital economy are significant. Lagos, a metropolis of over 20 million and Africa's largest city, is a hub of technology and innovation, yet its limited 5G access hinders growth in areas such as real-time data analytics, remote work and digital commerce.
Also read: Mobile industry to drive $270 billion GDP growth in Africa by 2030 – GSMA report
In the country's capital, Abuja, the coverage gap threatens Nigeria's aspirations to lead Africa's digital economy. “Device adoption reflects confidence in the potential of 5G, but without strong network expansion, we are hitting a bottleneck,” telecom analyst Jid Awe warned.
Awe noted that Nigeria risks lagging behind competitors such as South Africa, where 5G coverage is more widespread despite similar economic challenges.
Although 5G-enabled phones are affordable, it is still out of reach for many Nigerians. MTN Nigeria CEO Carl Toriola highlighted the affordability of 5G smartphones as a key issue, with prices ranging from N120,000 ($75) to N2 million ($1,250), putting them out of reach for the 88.4 million Nigerians living in extreme poverty.
“The biggest hurdle is the cost of the handsets,” Toriola said, noting MTN's collaboration with the Ministry of Communications to promote local smartphone assembly and offer financing through its MoMo platform.
Meanwhile, as reported by the NCC, operational challenges such as 1,100 daily fiber outages, 545 access denials, and 99 cases of generator and battery theft severely hamper network reliability.
Regulators have unveiled reforms to address these challenges. The 50 percent tariff hike approved in January 2025 has unlocked $1 billion in equipment investment since June, aimed at upgrading base stations and expanding fiber backbones.
NCC also signed an MoU with federal and state ministries to prevent disruptions caused by road construction and vandalism, designating telecom infrastructure as Critical National Infrastructure (CNI). Dinesh Balsingh, CEO of Airtel Nigeria, said, “Fiber cutting is now a criminal offence, which will protect our investment.”
Meanwhile, both MTN and Airtel are leveraging the technology to optimize 5G deployment.
MTN Chief Technology Officer Yahaya Ibrahim stressed the need for AI-powered demand planning and fault detection to prioritize high-demand urban centers like Lagos and Abuja. “We will not deploy 5G where there are no 5G handsets,” Ibrahim said. He said only 4.9 million 5G-enabled devices, mostly iPhone 13 models and above, are in use across the country.
Meanwhile, Airtel is accelerating its 5G rollout in cities, using AI to monitor billions of daily network interactions and deploying small-cell solutions like mini antennas in dense areas like Computer Village and Victoria Island. “We are focusing on customer experience APIs to identify vulnerabilities and act faster,” Balsingh said.
Airtel is also expanding its fiber infrastructure to support 5G, partnering with satellite providers like Starlink and OneWeb to bring 4G and 5G to rural areas. Over the past two years, the company moved 3,000 kilometers of fiber to increase resiliency.
However, rural areas remain deprived, with network speeds up to 50 percent slower than urban centres, widening Nigeria's digital divide.
Operators are seeking government subsidies to offset costs. “Expanding access to high-speed networks is critical to Nigeria's digital transformation. No one should be left behind,” an NCC spokesperson told BusinessDay.
