Following the launch of 5G by MTN and Mafab, SAMI OLATUNJI discusses the affordability challenges surrounding 5G deployment and mass adoption in Nigeria. MTN Nigeria pioneered 5G mobile services, soon followed by Mafab, which introduced the technology in January, heralded as a potential global cyber‑revolution. Airtel has also obtained a 5G licence and may launch the service shortly. Users can choose from phone‑router bundles or SIM‑only 5G offerings, with options varying significantly across regions. While worldwide adoption of fifth‑generation technology continues to grow, uptake in Nigeria remains low.
To accelerate adoption, Nigeria introduced a national 5G policy to guide network deployment. During its launch, President Major‑General Muhammadu Buhari (retd) stated that the policy aims to ensure major cities benefit from 5G, positioning the technology as a driver of the economy, a catalyst for smart cities, and a platform for job creation in the digital sector. Minister of Communications and Digital Economy Prof. Isa Pantami emphasized 5G’s potential to enhance mobile experiences and real‑time communications, adding that the policy seeks effective urban deployment by 2025, ecosystem security, and data protection.
Despite the government’s ambitious projections, the high cost of deploying 5G nationwide may hinder adoption. The Nigerian Communications Commission (NCC) identified several obstacles: a shortage of 5G‑enabled devices, high deployment expenses, limited high‑efficiency spectrum, and a lack of trained personnel. In the 2021 spectrum auction, Nigeria’s reserve price of $194.7 million (N75 bn) for the 3.5 GHz band was among the world’s highest, far exceeding prices in Egypt, India, and South Africa. Gbenga Adebayo, chairman of the Association of Licensed Telecom Operators of Nigeria, warned that exorbitant spectrum fees could prevent the country from fully benefiting from 5G. Similarly, Ikechukwu Nnamani, president of the Association of Telecommunications Companies of Nigeria, argued that reduced spectrum costs are essential for affordable subscriber rates, noting that 5G deployment is far more capital‑intensive than 4G.
In December 2021, MTN Nigeria and Mafab Nigeria Communications Limited won the 5G auction after 11 bidding rounds, paying $273.6 million per lot—MTN an additional $15.9 million for the preferred lot. The NCC later raised the reserve price for new 5G spectrum to $273.6 million, prompting objections from operators who cited the increase from $194.7 million in 2021. Huawei urged a lower reserve to encourage broader participation, while Airtel, which withdrew from the previous bid, requested a non‑competitive allocation at the reserve price. NCC’s Executive Commissioner of Technical Services, Ubale Maska, defended the higher price as reflecting the spectrum’s fair market value and urged Airtel to re‑enter the competitive process. Ultimately, in January 2023, Airtel was the sole bidder for the 3.5 GHz band. Prof. Pantami disclosed that Airtel, Mafab, and MTN collectively spent about $820.8 million on 5G spectrum, enabling services at 225 sites across eight states.
Affordability of 5G devices also threatens adoption. Although global shipments of 5G devices more than doubled from 2020 to 2021—over 615 million units and 650 smartphone models—prices remain prohibitive for most Nigerians. QuartzAfrica noted that low purchasing power and high data costs could impede 5G rollout across Africa. The cheapest 5G‑enabled smartphone on the continent costs roughly $300 (N210,000), beyond the reach of the average consumer. To address this, MTN partnered with financing platform Intelligra, OEMs (Samsung, TECNO, Nokia, Infinix, iTel), Stanbic IBTC Bank, and retailer Slot to offer installment plans with no upfront deposit. MTN’s 5G router, priced at N50,000, exceeds the national minimum wage, and a 2022 Alliance for Affordable Internet report indicated that only 44 % of Nigerians own smartphones. The GSMA’s 2022 Mobile Economy report warned that affordable 5G devices are crucial for adoption in Sub‑Saharan Africa, given the region’s historically low uptake of 4G due to device costs.
Industry leaders remain optimistic. Adeolu Ogunbanjo, president of the National Association of Telecoms Subscribers, affirmed Nigeria’s readiness for 5G despite existing challenges. Ajibola Olude, COO of the Association of Telecommunications Companies of Nigeria, highlighted MTN’s financing scheme and predicted rapid adoption once benefits become clear, citing potential impacts on security, education, health, and the broader economy. PPC Limited projected increased 5G uptake in Nigeria and three other Sub‑Saharan countries in 2023. Tower infrastructure firms also expressed willingness to partner with operators to reduce deployment costs and help bridge the country’s $136 billion infrastructure gap. Effective collaboration and support—both for network rollout and affordable subscriptions—will be decisive in achieving mass 5G adoption in Nigeria.
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