4G Remains Dominant As Profit Concerns Stall 5G Expansion

Latest industry data from the Nigerian Communications Commission show that 4G networks accounted for 53.76 per cent of Nigeria’s mobile connections as of March 2026, while 5G makes up only about 4.2 per cent despite its commercial rollout in 2022, far ahead of 2G and 3G. The data proves that 4G continues to be Nigeria’s dominant mobile technology as telecommunications operators delay wider deployment of fifth-generation (5G) networks over concerns about low returns on investment and the huge cost of expanding infrastructure. Older 2G networks still serve more than one-third of subscribers, highlighting the slow pace of migration to newer technologies.
Nearly five years after Nigeria began licensing 5G spectrum, operators have invested an estimated $820.8 million in the technology. However, network expansion has remained slower than expected as telecom companies continue to struggle to recover their investments amid low consumer adoption, high operating costs and limited demand for premium 5G services.
Analysts say most telecom operators are prioritising investments in expanding 4G capacity and fibre infrastructure, which currently generate stronger and more predictable revenue than 5G. Although 5G offers significantly faster internet speeds and lower latency, many Nigerians still rely on 4G because of the high cost of compatible smartphones and limited network availability.
The slow rollout is also affecting Nigeria’s broader digital economy. Experts warn that delayed 5G deployment could postpone growth in cloud computing, artificial intelligence, smart manufacturing, healthcare, education and other digital services that depend on faster and more reliable connectivity. Slower adoption also limits future telecom revenue growth and delays new investment opportunities across the sector.
Industry observers attribute the cautious investment approach to soaring energy costs, foreign exchange volatility, expensive imported network equipment and uncertainty over when operators will achieve sustainable returns on 5G investments. These challenges have forced many operators to concentrate on strengthening existing networks instead of aggressively expanding 5G coverage.
Despite the current slowdown, experts believe Nigeria still has significant long-term potential for 5G growth as smartphone adoption increases, enterprise demand rises and digital services continue to expand. They note that stronger regulatory support, improved infrastructure investment and wider availability of affordable 5G-enabled devices will be crucial to accelerating nationwide deployment and unlocking the technology’s economic benefits.