Rising Data Demand, AI To Power Nigeria’s Telecoms Expansion In 2026 – ATCON

Nigeria’s telecommunications industry is expected to move decisively from a period of consolidation in 2025 to full-scale expansion in 2026, driven by surging data demand, rapid adoption of artificial intelligence, and growing activity in the fintech ecosystem, the Association of Telecommunication Companies of Nigeria (ATCON) has said.

The President of ATCON, Mr Tony Emoekpere, disclosed this in Lagos while outlining his outlook for the sector, noting that the industry is entering 2026 with stronger fundamentals and renewed investor confidence following a year of stabilisation amid economic and operational headwinds.

According to Emoekpere, rising demand for data-intensive services across fintech platforms, artificial intelligence applications, cloud computing, digital payments and streaming services will be a major catalyst for growth in the coming year.

He said the sector’s outlook reflects its resilience despite challenges such as foreign exchange volatility, high energy costs, expensive equipment imports and persistent Right-of-Way bottlenecks.

Reflecting on developments in 2025, Emoekpere described the year as one of endurance and careful capital discipline, during which telecom operators, tower companies and internet service providers focused on stabilising operations rather than aggressive expansion.

He noted that industry players did not retreat in the face of challenges but instead prioritised network densification in high-demand corridors while accelerating the transition to solar and hybrid energy solutions to reduce reliance on diesel-powered infrastructure.

He said data from the Nigerian Communications Commission (NCC) showed that broadband penetration in Nigeria crossed the 50 per cent threshold in 2025, a milestone he attributed to the deepening integration of digital services into everyday economic and social activities.

Emoekpere also commended the NCC for sustaining transparent industry reporting, enforcing quality-of-service standards and ensuring efficient spectrum management, which he said played a key role in preserving investor confidence.

“These actions have helped stabilise the industry and send the right signals to investors,” he said, adding that collaborative engagement among operators, regulators and the Federal Government had strengthened the sector’s foundation for growth.

Looking ahead, Emoekpere said 2026 must be a year of execution, speed and scale, with operators expected to ramp up investments in data centres and last-mile broadband infrastructure, including fibre-to-the-home and fixed wireless access solutions, to meet rising digital demand.

He stressed that the visible enforcement of telecom assets as critical national infrastructure would be essential to sustaining expansion, calling for coordinated action to protect fibre routes and telecom towers from vandalism and other security risks.

He also urged the harmonisation of Right-of-Way charges across states, warning that inconsistent policies and multiple taxation continued to weigh heavily on operators and could slow deployment if left unaddressed.

According to ATCON, addressing these structural issues alongside sustained policy coordination will be critical to unlocking the next phase of growth in Nigeria’s telecoms industry as digitalisation accelerates across key sectors of the economy.