News
Nigeria poised to become one of Africa’s largest 5G markets, GSMA projects
Nigeria is expected to emerge as one of Africa’s leading 5G markets over the next decade, driven by rising investments in next-generation mobile networks, increasing smartphone adoption and growing demand for high-speed connectivity, according to new projections from the GSM Association (GSMA).
While 4G is expected to remain the dominant mobile technology across much of Sub-Saharan Africa in the near term, the GSMA says 5G adoption is steadily gaining momentum, with Nigeria positioned to play a central role in the region’s transition.
In its Mobile Economy Sub-Saharan Africa report, the GSMA projects that Nigeria and South Africa will account for almost half of the region’s estimated 226 million 5G connections by 2030. The report places total 5G connections in Sub-Saharan Africa at 226 million by the end of the decade, representing an adoption rate of about 17%.
The GSMA has previously identified Nigeria as one of the key markets driving Africa’s transition to advanced mobile technologies, reflecting growing readiness for large-scale 5G deployment.
The broader Mobile Economy 2026 report underscores the growing importance of advanced connectivity technologies to economic transformation across emerging markets.
“AI and 5G are expected to remain the primary investment priorities for enterprises through to 2030, reflecting their role as critical enablers of cross-sector digitalisation,” the GSMA said.
Across the continent, 5G adoption is projected to accelerate significantly over the coming years. The GSMA’s Mobile Economy Africa 2025 report estimates that mobile technologies, including 4G, 5G and AI, could contribute up to $270 billion to Africa’s economy by 2030.
Nigeria among early adopters of 5G in Africa
Nigeria was among the first major markets in Sub-Saharan Africa to launch commercial 5G services following spectrum auctions conducted by the Nigerian Communications Commission (NCC) in 2021.
Telecommunications operators including MTN Nigeria and Mafab Communications launched commercial 5G networks in 2022, with Airtel Nigeria subsequently rolling out its own 5G services, marking a competitive push into next-generation connectivity in the country.
The GSMA has previously identified Nigeria as one of the key markets driving Africa’s transition to advanced mobile technologies, reflecting growing readiness for large-scale 5G deployment.
The expansion of 5G is expected to extend beyond faster mobile broadband, enabling a wider range of use cases including fixed wireless access (FWA) for homes and businesses, industrial automation, cloud computing, Internet of Things (IoT) deployments and AI-powered services.
As demand rises for faster mobile broadband, cloud computing, artificial intelligence applications and enterprise connectivity, Nigeria’s large population, expanding digital economy and growing mobile broadband usage are positioning it as one of the continent’s most important 5G markets.
According to GSMA Intelligence, FWA is emerging as one of the most promising early applications of 5G in Sub-Saharan Africa, offering operators a pathway to expand broadband access in underserved areas while unlocking new revenue streams.
However, the pace of adoption will depend on the ability to overcome structural constraints, particularly around device affordability and access.
Smartphone affordability remains key 5G barrier
The GSMA notes that Africa continues to record the lowest smartphone ownership levels globally, with just 24% penetration recorded in 2024. Affordability remains the primary barrier limiting adoption, a challenge that directly affects access to 5G services, which require compatible devices.
To address this gap, GSMA and major operators including MTN, Airtel, Orange and Vodacom have launched initiatives aimed at expanding access to more affordable 4G and 5G-enabled devices across African markets.
The organisation argues that reducing handset costs will be critical to increasing mobile internet usage and accelerating the transition to next-generation networks.
As demand rises for faster mobile broadband, cloud computing, artificial intelligence applications and enterprise connectivity, Nigeria’s large population, expanding digital economy and growing mobile broadband usage are positioning it as one of the continent’s most important 5G markets.
The projections suggest that Nigeria’s role in Africa’s digital future will depend not only on continued network expansion, but also on ensuring that consumers and businesses have access to affordable devices and enabling services required to fully leverage 5G connectivity.
FCMB Group deployed a mix of strategies, including top-line expansion and cost management, to deliver a 90.5 per cent increase in net profit for the six months to June, compared with a year earlier, the latest accounts of the bank holding company published on Monday showed.
Gross earnings climbed to N676.2 billion from N529.2 billion, with 88.8 per cent of it solely contributed by interest and discount income, setting the scene for the big earnings boost, which was partly driven by a reduction in some major expenses.
Cost-to-income ratio dropped to 41.4 per cent from 57 per cent one year prior, strengthening earnings.
FCMB Limited, the group’s commercial banking division, continued to dominate performance across key income streams and accounted for more than three-quarters of post-tax profit.
The other divisions, including Credit Direct, its consumer lending business that offers payroll-based loans to customers, are all currently profitable, contributing their share to the bottom line.
The financial institution managed to scale back interest expense by 2.7 per cent (N6.8 billion), even as interest and discount income rose by up to 31 per cent, attributable to an improved low-cost deposit mix and lower cost of funds.
That was a lever for a jump in net interest income from N207.4 billion to N356.3 billion.
In a separate statement on Monday, FCMB Group highlighted the role of its digital business – comprising payments, lending and wealth – in driving turnover growth. It noted that digital revenue, at N89.1 billion, added 13.2 per cent to gross earnings due to volume growth.
“Our first-half performance demonstrates the strength of our recapitalised and diversified business model,” said Ladi Balogun, the CEO.
“We delivered record profitability despite accelerating the normalisation of asset quality towards regulatory thresholds, reflecting our commitment to building a stronger balance sheet for long-term growth,” he added.
Net fee and commission improved by almost one-third, enabled by both a rise in fee and commission income and a drop in related expenses.
Net trading income took a blow from sharply weaker bond and treasury bills trading income, falling 65.7 per cent year on year.
READ ALSO: Aradel, NEM, FCMB Group top stock pick this week
Likewise, impairment losses quickened to N85.9 billion from N36.2 billion, as the provision for other losses, apart from those on loans and advances, surged 2,427.6 per cent to N48.1 billion.
Profit before tax roughly doubled to N157.3 billion, while profit for the period stood at N139.9 billion, up from N73.4 billion in the same period last year.
Mr Balogun assured that return on equity will surpass 25 per cent this year, compared with 21.1 per cent for the financial year 2025.
-
Business4 days agoLingzhi Global Champions Coffee Culture at Jos Awareness Campaign
-
News2 days ago
Monday.com is the latest tech company to blame AI for layoffs — here are 20 others
-
Health4 days agoKano Renews Commitment to Eliminating Mother-to-Child Transmission of HIV, Hepatitis B, Syphilis
-
Business4 days ago
Nigerian Man Says ₦270,000 NELFUND Loan Helped Him Earn First ₦1 Million
