…High cost of devices, coverage remains uneven
…As smartphone market contracts 11% amid rising device prices
…Africa’s budget smartphone shipments plunge 34% amid rising costs
By Juliet Umeh
Nigeria’s mobile market has shifted significantly towards newer network technologies over the past three years, but 5G remains out of reach for most consumers. High smartphone prices, uneven network coverage and rising infrastructure costs continue to limit adoption, despite growing demand for mobile data.
In May 2023, 2G accounted for 58.36 percent of reported mobile connections, while 4G represented 25.06 percent and 5G just 0.12 percent. By August 2026, 4G had become the leading technology at 54.77 percent, while 2G fell to 36.05 percent. 5G increased to 4.92 percent.
The data from the Nigerian Communications Commission, NCC, show progress but underline how slowly the newest technology is reaching the wider population.
Chief Technology Officer of NATCOM Development and Investment Limited, trading as NTEL, Kingsley Uwazie, said Nigerians had a strong appetite for data consumption, but the cost of accessing 5G remained a significant barrier.
“The 5G ecosystem is in its maturity phase. It has been proven that there is an appetite. Nigerians have an appetite to consume data. But there is a barrier to acquiring the devices and using the technology,” he said.
High cost of compatible devices
Consumers need 5G-enabled smartphones to access the technology, but rising device prices are making upgrades increasingly difficult, particularly for low-income earners.
Uwazie said 5G devices remained expensive despite subsidies offered by some operators.
“5G, at the moment, is not a cheap technology to deploy or to own. The cost of 5G devices has been high,” he said.
He cited MTN Nigeria and Airtel Nigeria as operators subsidising selected devices, adding that a phone available for about N50, 000 with a subsidy could cost more than N200, 000 without it.
The affordability challenge has intensified as Nigeria’s smartphone market contracted by 11 percent in the second quarter of 2026, according to technology research firm Omdia. Rising memory-chip costs, partly linked to growing demand from artificial intelligence, AI, data centres, have increased pressure on manufacturers and consumers.
Across Africa, shipments of smartphones priced below $100 fell by 34 percent year-on-year during the quarter.
In Nigeria, a market assessment published by technology news platform Condia found that prices of selected Tecno, Infinix, Oppo and itel models increased between January and June 2026. The midpoint price of the itel S-Series Ultra rose from about N263, 500 to N316,400, while the Infinix Zero Series increased from approximately N550,000 to N637,500.
Omdia warned in June that Nigerian smartphone prices could rise by another 15 to 30 percent through the remainder of 2026 if component costs continued increasing.
These developments could discourage consumers from upgrading, slowing the growth of the 5G user base.
Coverage remains uneven
Even consumers who can afford compatible devices may struggle to access reliable 5G connections because coverage varies by location.
MTN’s 2023 pilot announcement identified Lagos, Abuja, Port Harcourt, Ibadan, Kano, Owerri and Maiduguri as intended launch cities, subject to coverage. Airtel began its rollout in Lagos, Ogun, Rivers and the Federal Capital Territory, focusing on selected locations.
However, a rollout in a city or state does not guarantee availability in every neighbourhood.
A December 2025 report based on Ookla analysis put Lagos’s average 5G coverage gap at 55.4 percent, meaning a compatible phone could not connect to 5G for more than half of the measured time. The gap was approximately 50 percent for MTN and 77 percent for Airtel.
In Abuja, the average gap stood at 47.4 percent. These figures measure time-based access gaps, not the proportion of land without coverage, but they illustrate the difficulty consumers face in obtaining consistent service.
High operating costs slow expansion
Expanding 5G requires substantial investment in network infrastructure, electricity and transmission. Operators must determine whether the number of potential subscribers in an area can justify those costs.
Uwazie estimated that operating a telecommunications site in Nigeria could cost between $2,000 and $3,000 monthly, compared with about $300 in China and $500 in India. He said the costs included power and transmission.
“If you deploy 5G in areas where only two people have 5G-enabled phones, it means those two people can’t cater for the operating expenditure required to deploy 5G. The operating expenditure of running mobile networks in Nigeria is extremely high. It is a combination of both power and transmission, keeping that site up.”
The limited number of compatible devices can, therefore, weaken the business case for expanding coverage, particularly in areas where operators expect low subscriber numbers.
Digital inclusion at risk
The challenge extends beyond 5G adoption to Nigeria’s broader digital inclusion ambitions.
The GSMA’s smartphone adoption report found that only 27 percent of Nigeria’s population owned a smartphone in 2024, while the mobile internet usage gap remained close to 60 percent.
The NCC said in April 2026 that it was exploring ways to make cheaper smartphones available. Nigeria was also selected for pilot initiatives coordinated by the GSMA’s Handset Affordability Coalition to expand access to affordable 4G smartphones.
However, rising global component costs threaten to undermine these efforts.
Affordable devices and reliable connectivity are essential for mobile banking, digital education, online commerce and employment opportunities. Expanding network coverage alone will not connect consumers who cannot afford internet-enabled phones.
For 5G to reach more Nigerians, compatible devices must become cheaper, coverage must improve and operators must find sustainable ways to reduce deployment costs.
Until these barriers are addressed, 5G will remain largely inaccessible to many consumers, with adoption concentrated among those who can afford compatible smartphones and live in well-served locations.
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