More Nigerians are moving to 4G and 5G networks as telcos like MTN and Airtel increase infrastructure investments across the country.
The number of 4G sites deployed by MTN Nigeria has increased by 2.7%, CEO Karl Triola said during an investor conference call on Monday. With this infrastructure expansion, customers’ 4G usage increased from 79.1% to 81.5%.
MTN’s number of 5G sites increased the most from 588 sites to 2,106 sites, and 5G penetration rose from 3.1% to 11.3%.
Airtel, another major telco, has rolled out its 5G network in four cities including Lagos and Abeokuta and is currently testing its network in Osogbo.
Telcos pour billions into infrastructure
MTN Nigeria and Airtel Africa have spent a combined £613 billion to expand their 4G and 5G networks by the end of 2022, the companies’ regulatory filings have revealed.
MTN spent N504.33 billion on network rollout while Airtel invested N108.79 billion in the same period. Smartphone vendors have also responded, primarily by increasing shipments of 4G and 5G-enabled devices, with data from Canalys showing that smartphone shipments to Africa will increase by 12% in 2023.
As of January 2024, TECNO leads the smartphone vendor market with 26.03%, followed by sister brand Infinix with 20.88%. Samsung is in 3rd place with 11.43%, and Apple is in 4th place with 9.66%.
Usage increases due to infrastructure growth
By December 2023, 1.04% of Nigeria’s internet subscribers were using 5G. According to data from the Nigerian Communications Commission (NCC), 4G users also increased to 31.33%.
The number of 3G subscriptions in December 2023 was only 2.18 million, and 2G usage, which still accounts for more than half (57.84%) of mobile internet subscriptions, also declined.
The number of 4G and 5G subscriptions increased despite supply chain disruptions and inflationary pressures that pushed smartphone prices up 30%, according to GSMA data. In response to these pressures, carriers are partnering with asset finance companies and smartphone manufacturers to offer flexible financing options.
The partnership between Airtel and iTel will enable customers to purchase a range of affordable smartphones.
“These deals are helping our subscribers acquire 4G/5G devices and routers,” added Airtel Nigeria Public Relations Officer Sam Adeoye.
Aisha Husseini, founder of device financing startup Keza Africa, said the demand for smartphone financing is increasing against the backdrop of rising inflation in Nigeria.
“Even those who did not choose device financing because of the devaluation of the naira are now choosing it,” Husseini said.
