In our last report on the country’s broadband penetration (See CSL Nigeria Daily 02 February 2022—Is broadband penetration set to grow in 2022?), we espoused our view that after a disappointing performance in broadband penetration in 2021 due to the SIM-NIN integration exercise, 2022 will be better off, indicating that penetration would rise in the year, albeit at a gradual pace. True to our prognosis, the broadband penetration rate has increased progressively as the recent data by the Nigerian Communications Commission (NCC) showed that the broadband penetration increased to 44.32% in June 2022 from 40.88% in December 2021. Accordingly, the total number of broadband subscriptions has increased to 84.61m subscriptions from 78.04m subscriptions in December 2021.  

Save for February 2022, the subscriptions have increased m/m, with the most recent between May and June, where subscriptions rose by 1.5% m/m. We attribute the continued m/m uptick to the sustained efforts by the industry players in deploying fixed and mobile broadband infrastructure. Also, we have seen states like Lagos, Ekiti, Kaduna and Kwara reducing right of way charges to encourage investments in broadband infrastructure in the states such as the partnership between Kaduna State and Airtel Nigeria to deepen 3G and 4G network coverage by the end of the 2022 including deployment of fibre network access. Meanwhile, the NCC has approved commencement of fibre roll-out by licensees under the Open Access Fibre Infrastructure Network (OAFIN) License, also referred to as the Infraco License.  

Looking ahead, we expect broadband penetration to continue to grow in the later part of the year. The recent partnership between the NCC and Google in April 2022 to improve broadband penetration in the country is commendable. More interesting is that Elon Musk’s Starlink satellite internet network is expected to start operations in the country this month, bringing high-speed, low-latency broadband internet to remote and rural areas of the country. However, subscription to the satellite internet services requires the acquisition of a starter kit and monthly subscriptions whose values are yet to be disclosed. Based on the company’s website, the starter kit to Nigeria is US$99, significantly lower than the US$599 it sells its starter kits in the US and where monthly subscription cost is US$110