Despite the numerous advantages touted by telecommunications operators, the adoption of fifth-generation (5G) technology in Nigeria remains sluggish, with only a few subscribers having access to it two years after its launch in the country.
According to the latest statistics released by the Nigerian Communications Commission (NCC), the majority of telecoms subscribers are still using second-generation (2G) technology to access telecoms services across networks.
MTN Nigeria Communications Plc had a pilot rollout of 5G services in August 2022, followed by a commercial rollout in Lagos in September 2022. Airtel Nigeria also rolled out its 5G network in four states in June 2023, with plans to cover the entire country by the end of 2022.
Despite the hype surrounding the benefits of 5G, the penetration of the technology remains low. As of March 2024, 5G penetration was at 1.24%, while 2G penetration stood at 56.97%, 3G at 9.04%, and 4G at 32.74%.
The slow growth of 5G technology can be attributed to several factors. Firstly, there has been a decline in capital investments in the telecoms sector over the past two years, hindering network expansion, particularly for 5G, which requires heavy investments.
Secondly, the high cost of 5G-enabled devices is limiting the majority of subscribers from upgrading to the new technology. Compared to 2G-enabled devices, which are more affordable, many Nigerians opt to remain on the 2G network.
Thirdly, the disposable income of 5G users has been affected by the country’s economic challenges, including inflation. Many users now turn off their data when not in use to save costs, impacting the overall usage and growth of 5G.
The Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, highlighted these factors, emphasizing the need for increased investments in the telecoms sector to drive 5G adoption.
Overall, the slow adoption of 5G technology reflects broader challenges facing the telecoms sector in Nigeria and underscores the importance of addressing these issues to fully realize the potential of advanced technologies.
