Nigeria’s telecommunications giants have turned their attention to data as subscriber growth plateaus in Nigeria’s maturing mobile market, spurring a shift in infrastructure investment.
BusinessDay findings show that telecom operators are now investing heavily in faster networks, fibre cables and data centres. The goal is to serve existing customers who spend more time online, watching videos, using social media, making digital payments, working remotely and attending online classes.
Figures from the Nigerian Communications Commission (NCC) show that active mobile subscriptions stood at 179.64 million in December 2025, up slightly from 177.43 million in November. Teledensity rose to 82.87 percent, meaning most Nigerians already have at least one SIM card.
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In cities especially, almost everyone who wants a phone line already has one, many people even have two or more SIMs. Because of this, telecom companies are finding it harder to add large numbers of new users.
However, while subscriber growth is slowing, data usage is rising sharply. NCC data show that internet traffic reached 1.39 million terabytes in December, up from 1.24 million terabytes in November.
This growth is driven by everyday online activities such as video streaming, social media, mobile banking, online learning and new digital apps. More Nigerians may not be joining networks, but those already connected are using much more data.
Broadband subscriptions also increased to 112.67 million, pushing penetration close to 52 percent. Internet speeds have improved, too.
Average mobile download speed almost doubled in two years, from about 7 Mbps in early 2023 to 14.7 Mbps by late 2025, mainly because more users are now on 4G networks.
According to Aminu Maida, executive vice chairman of the NCC, this growing appetite for data is reshaping telecom investment.
“This usage boom is the main reason operators are investing more in data services rather than chasing new subscribers. In 2025 alone, over $1 billion was invested across the industry, leading to the deployment of more than 2,850 new network sites,” Maida said.
He added that although network quality has improved, there is still work to be done. “Quality of service today is not yet where we want it to be, but we are no longer where we used to be,” he said, noting that operators plan to invest even more in 2026.
The market remains dominated by a few big players. MTN Nigeria leads with 93.06 million subscribers, accounting for 51.87 percent of the market. Airtel follows with 60.89 million subscribers (33.94 percent), while Globacom holds about 12.39 percent. Together, MTN and Airtel control nearly 86 percent of the market, meaning they capture most of the growth in data usage.
Network technology trends also tell the story. 4G now carries more than half of all connections, while 2G still serves over a third of users, mainly because cheaper phones and basic services remain important for many Nigerians.
Data from mobile number switching shows that few people are changing networks. Between September and December 2025, only about 1,300 to 1,600 users switched networks each month, suggesting that competition is now more about better data experience than signing up new customers.
MTN ramps up data-led investments
As data demand grows, MTN Nigeria, the country’s largest operator, says it is expanding its data services aggressively.
Karl Toriola, MTN chief executive said the company is investing in network upgrades, fibre expansion and digital infrastructure to ensure Nigerians can access faster and more reliable data.
“Our focus is on bringing high-speed connectivity closer to users, improving experience and supporting the digital economy.
Data is essential for connectivity, inclusion and economic diversification beyond traditional resources. We are expanding both mobile and fixed networks to meet rising needs,” Toriola said.
MTN’s expansion includes the launch of FibreX, a fibre-to-the-home service designed to relieve congestion on mobile networks and deliver high-speed broadband directly to homes and businesses. The company is also building out its 5G network and investing in cloud-ready infrastructure to support digital services and enterprise solutions.
In July 2025, MTN launched the Dabengwa Data Centre in Lagos, a $150 million Tier III facility that supports cloud services and content delivery networks.
According to Toriola, the centre will help reduce latency, improve speeds and create an environment that encourages more data usage and local digital innovation.
“By strengthening our infrastructure across fibre, mobile and data centres, we are not just responding to demand, we are helping to grow the data economy,” Toriola said.
Airtel’s big push in 2026
Airtel Nigeria, the second-largest operator, says 2026 will be a major year of network and data expansion.
Dinesh Balsingh, Airtel CEO, said the company had expanded its network footprint, increasing sites from roughly 15,000 to 17,000, with plans to expand further in 2026.
“We intend to repeat that scale of expansion again in 2026. These investments are focused on improving coverage, capacity and resilience, not just in big cities but in deep rural communities and small towns,” Balsingh said.
He noted that Airtel has deployed satellite technology in remote locations, including parts of northern Nigeria, where traditional fibre infrastructure is impractical.
“These are very remote villages where terrestrial fibre was practically impossible, but satellite connectivity is performing very well,” Balsingh said.
Airtel has equally upgraded about 25 percent of its existing sites with higher-capacity equipment and migrated backhaul links from microwave to fibre.
Today, 99.99 percent of Airtel’s sites are 4G-enabled, even in remote areas, and the company has increased 4G spectrum capacity by about 20 percent to meet rising data demand.
On 5G, Balsingh said Airtel has more than doubled its 5G sites in the past few months and plans to migrate about 25 percent of its network in top cities to 5G over time.
Airtel is also expanding its fibre backbone by about 25 percent and working on a second internet breakout point from southern Nigeria to enhance network resilience. The company is strengthening its data centre and artificial intelligence capabilities with facilities expected to support advanced analytics, network automation and consumer protection services.
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“These investments are about building scale, capacity and resilience for the long-term future of Nigeria,” Balsingh said, describing 2026 as another massive year for infrastructure development.
A new phase for Nigeria’s telecoms
Competition in the industry is increasingly focused on who can deliver the fastest, most reliable and most affordable data services, rather than who can sign up the most SIM cards.
Mobile number portability data show that between September and December 2025, monthly porting activity averaged between 1,300 and 1,600 transactions, with larger networks like MTN and Airtel attracting the most incoming switches. The relatively low switching suggests that subscribers are sticking with networks that meet their data needs, rather than chasing price alone.
Policy actions are also shaping the landscape. Bosun Tijani, the minister of Communications, Innovation and Digital Economy of Nigeria, has directed the NCC to enforce automatic penalties for network failures within 90 days, as part of efforts to improve quality and accountability.
Regulators are also facilitating the gradual migration from older 2G and 3G services to faster 4G and 5G networks.
Overall, Nigeria’s telecom sector is shifting from a subscriber-led growth model to a data-driven one. While the pace of new SIM registrations has slowed, the surge in internet usage, powered by better networks, expanded broadband and sustained investment, is helping to power the digital economy.
To sustain this momentum, industry leaders say Nigeria must continue addressing persistent challenges such as rural coverage gaps, infrastructure vandalism, power reliability and multiple taxation, ensuring that rising data demand translates into consistent service quality and long-term growth.
