Nigeria’s Digital Divide Widens Amidst Global Tech Advancements, High Cost of Smartphones

The digital divide, or technology gap, which encompasses disparities in internet access, computer literacy, and the skills needed to navigate the digital world, continues to widen in Nigeria due to global technological advancements. While developed nations are progressing rapidly with new technologies to drive the digital age, Nigeria, like many other developing nations, is struggling to catch up due to insufficient ICT infrastructure.

In particular, the global conversation around broadband technology is centered on the potential of 5G and its numerous advantages. However, Nigeria’s journey toward fully utilizing the benefits of 5G remains slow, hindered by low smartphone penetration, which is exacerbated by poverty, illiteracy, and lack of awareness.

The Nigerian Communications Commission (NCC) in its latest report revealed that 2G continues to dominate Nigeria’s mobile market. As of December 2023, 57.84% of the country’s 224.7 million mobile subscriptions were still on 2G, while 31.33% were on 4G, 9.80% on 3G, and only 1.04% on 5G. This data highlights the country’s low smartphone ownership despite significant investments in network infrastructure by telecom companies such as MTN.

High Cost of Smartphones a Barrier to Digital Inclusion

A 2023 report by DataReportal indicated that between 11.8% and 18.9% of Nigeria’s population—over 211 million people—own smartphones, which correlates with an estimated 122.5 million internet users. MTN Nigeria’s CEO, Karl Toriola, identified the high cost of mobile phones as a major obstacle to digital inclusion in the country.

Toriola discussed this issue in a recent interview on Arise TV, explaining that while many Nigerians would prefer to shift from traditional voice services to data-driven services, they are constrained by the prohibitive costs of 4G and 5G-enabled smartphones. As of November 2023, while there was an increase in the availability of 5G-enabled smartphones, with prices ranging from N120,000 to over N2 million, the cost remains beyond the reach of 88.4 million Nigerians living in extreme poverty.

“The biggest barrier is the cost of handsets,” Toriola said. “Affordability of data is a key issue, but the affordability of smartphones is the challenge to unlocking the full potential of digital data. Also, while global demand for smartphones has led to a reduction in prices, Nigeria may not generate enough demand to see significant price drops.”

Proposed Solutions to Address Device Affordability

To make smartphones more accessible, Toriola suggested local assembly of devices to reduce production costs and eliminate customs taxes. He emphasized the importance of collaboration with regulators to achieve these goals. MTN is actively working with the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, and other regulatory authorities to address device affordability and drive digital inclusion in Nigeria.

Toriola also highlighted the significance of credit scoring in enabling consumers to finance their mobile devices, noting that several companies in Africa, in partnership with MTN, are working on solutions to assess creditworthiness. “Through our mobile money platform, MoMo, we will be able to predict behavioral patterns and creditworthiness, which will help make smartphones more accessible to a broader demographic,” he added.

Expansion of 5G and Fibre Connectivity

Regarding network advancements, Toriola revealed that MTN’s rollout of 5G technology had quadrupled by the end of 2023. He assured Nigerians that the company would continue to provide high-quality technological connectivity. “We are very proud of our achievements so far, and we see a huge opportunity to offer customers improved quality of service,” he said.

MTN is also focused on expanding fibre optic networks across Nigeria to bring internet connectivity closer to residential homes and offices. “We want to ensure that homes and offices are connected to uninterrupted internet,” Toriola explained. “As we continue to expand our fibre infrastructure, we will be a significant part of Nigeria’s push toward a digital economy. We are fully committed to supporting the digital transformation agenda of the Ministry of Communications and Digital Economy,” he concluded.

Nigeria’s Digital Divide Widens Amidst Global Tech Advancements, High Cost of Smartphones

The digital divide, or technology gap, which encompasses disparities in internet access, computer literacy, and the skills needed to navigate the digital world, continues to widen in Nigeria due to global technological advancements. While developed nations are progressing rapidly with new technologies to drive the digital age, Nigeria, like many other developing nations, is struggling to catch up due to insufficient ICT infrastructure.

In particular, the global conversation around broadband technology is centered on the potential of 5G and its numerous advantages. However, Nigeria’s journey toward fully utilizing the benefits of 5G remains slow, hindered by low smartphone penetration, which is exacerbated by poverty, illiteracy, and lack of awareness.

The Nigerian Communications Commission (NCC) in its latest report revealed that 2G continues to dominate Nigeria’s mobile market. As of December 2023, 57.84% of the country’s 224.7 million mobile subscriptions were still on 2G, while 31.33% were on 4G, 9.80% on 3G, and only 1.04% on 5G. This data highlights the country’s low smartphone ownership despite significant investments in network infrastructure by telecom companies such as MTN.

High Cost of Smartphones a Barrier to Digital Inclusion

A 2023 report by DataReportal indicated that between 11.8% and 18.9% of Nigeria’s population—over 211 million people—own smartphones, which correlates with an estimated 122.5 million internet users. MTN Nigeria’s CEO, Karl Toriola, identified the high cost of mobile phones as a major obstacle to digital inclusion in the country.

Toriola discussed this issue in a recent interview on Arise TV, explaining that while many Nigerians would prefer to shift from traditional voice services to data-driven services, they are constrained by the prohibitive costs of 4G and 5G-enabled smartphones. As of November 2023, while there was an increase in the availability of 5G-enabled smartphones, with prices ranging from N120,000 to over N2 million, the cost remains beyond the reach of 88.4 million Nigerians living in extreme poverty.

“The biggest barrier is the cost of handsets,” Toriola said. “Affordability of data is a key issue, but the affordability of smartphones is the challenge to unlocking the full potential of digital data. Also, while global demand for smartphones has led to a reduction in prices, Nigeria may not generate enough demand to see significant price drops.”

Proposed Solutions to Address Device Affordability

To make smartphones more accessible, Toriola suggested local assembly of devices to reduce production costs and eliminate customs taxes. He emphasized the importance of collaboration with regulators to achieve these goals. MTN is actively working with the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, and other regulatory authorities to address device affordability and drive digital inclusion in Nigeria.

Toriola also highlighted the significance of credit scoring in enabling consumers to finance their mobile devices, noting that several companies in Africa, in partnership with MTN, are working on solutions to assess creditworthiness. “Through our mobile money platform, MoMo, we will be able to predict behavioral patterns and creditworthiness, which will help make smartphones more accessible to a broader demographic,” he added.

Expansion of 5G and Fibre Connectivity

Regarding network advancements, Toriola revealed that MTN’s rollout of 5G technology had quadrupled by the end of 2023. He assured Nigerians that the company would continue to provide high-quality technological connectivity. “We are very proud of our achievements so far, and we see a huge opportunity to offer customers improved quality of service,” he said.

MTN is also focused on expanding fibre optic networks across Nigeria to bring internet connectivity closer to residential homes and offices. “We want to ensure that homes and offices are connected to uninterrupted internet,” Toriola explained. “As we continue to expand our fibre infrastructure, we will be a significant part of Nigeria’s push toward a digital economy. We are fully committed to supporting the digital transformation agenda of the Ministry of Communications and Digital Economy,” he concluded.