Telecom giants MTN and Airtel have increased investments in infrastructure across Nigeria, to help Nigerian consumers transition to 4G and 5G networks, with MTN Nigeria’s CEO, Karl Toriola, noting a surge in the deployment of 4G and 5G sites across the country.
MTN Nigeria reported a 2.7% increase in the number of 4G sites, resulting in a rise in 4G adoption from 79.1% to 81.5% among its customer base. Moreover, the company witnessed growth in its 5G infrastructure, with the number of 5G sites climbing from 588 to 2,106, boosting 5G usage from 3.1% to 11.3%.
Airtel has also launched its 5G networks in major cities like Lagos and Abeokuta, with ongoing testing in locations such as Oshogbo. Both telecom operators have collectively invested ₦613 billion in expanding their 4G and 5G networks by the end of 2022, as per regulatory documents.
The network expansion coincides with increased availability of smartphones compatible with advanced networks. Smartphone manufacturers have responded to the demand, resulting in a 12% rise in smartphone deliveries to Africa in 2023, according to Canalys.
By January 2024, TECNO emerged as the leading smartphone brand in the Nigerian market, capturing 26.03% share, followed closely by Infinix with 20.88%. Samsung secured the third position with 11.43%, while Apple maintained a 9.66% share.
Data from the Nigerian Communications Commission (NCC) revealed that as of December 2023, 5G subscriptions accounted for 1.04% of internet users, while 4G adoption stood at 31.33%. Despite 2G’s continued dominance, comprising 57.84% of mobile internet subscriptions, its usage has dwindled over time.
Challenges such as supply chain disruptions and inflation led to a 30% surge in smartphone prices, as reported by GSMA. However, the uptake of 4G and 5G subscriptions remains strong, driven by collaborations between telecom companies, asset financing firms, and smartphone manufacturers.
Partnerships like the one between Airtel and iTel offer customers access to affordable smartphones, while startups like Keza Africa are witnessing increasing interest in smartphone financing despite economic uncertainties.