Two-years After 5G Launch, More Nigerians Still Utilise 2G to Access Telecoms Services 

Emma Okonji

In spite of the many advantages of the fifth generation (5G) technology, as reeled out by telecommunications operators, only few Nigerian telecoms subscribers have access to 5G technology, two years after its launch in the country.

Majority of the subscribers are still utilising the second generation (2G) technology to access telecoms services across networks, according to the latest statistics released by the Nigerian Communications Commission (NCC).  

Following the orders from the NCC, that all licensed 5G operators must roll out 5G services in 2022, MTN Nigeria Communications Plc, had a pilot rollout of 5G services in August 2022, before the commercial rollout of its 5G services in Lagos, in September 2022, with a promise to roll out in six other states before the end of that year.

In June 2023, Airtel Nigeria also rolled out its 5G network in four states in Nigeria, with plans to cover the entire country by the end of 2022. 

Both MTN and Airtel hyped so much on the benefits of 5G network, and they encouraged telecoms subscribers to connect to 5G and enjoy the new possibilities and experiences that 5G brings.

According to the telecoms operators, “5G is not just about speed. 5G will help people do more with their devices, unlocking a whole new world of possibilities for society. 5G connectivity will pave the way for life-altering advancements, bringing in high speed of connectivity with lower latency, and giving customers near-instant access to the things they care about and downloads that take seconds, instead of minutes.”

But in spite of the hype, only few telecoms subscribers have been connected to the 5G network, as majority of subscribers are still on 2G network.

Advancement in technology started with GSM technology, and later advanced to 2G, 3G, 4G and 5G technologies, with each technology promising better customer experience.

But the recent statistics released by the NCC, which THISDAY obtained from its website, showed that majority of telecoms subscribers are still accessing telecoms services via the 2G technology, despite the hype on 5G technology.      

According to the statistics, as at March 2024, 2G penetration across networks is 56.97 per cent, while 3G penetration is 9.04 per cent. The 4G penetration is put at 32.74 per cent, while 5G penetration, which is the latest technology with so much hype was put at 1.24 per cent penetration.

From the statistics, one year after the commercial launch of 5G network in Nigeria, its penetration level was 0.88 per cent as at September 2023, when 2G penetration level was already at 60.08 per cent and 4G was at 28.47 per cent penetration level.

However, 2G penetration started sliding from October 2023 at 60.00per cent, to reach 57.84 per cent in December 2023, with a further slide to 57.78 per cent and 57.55 per cent in January and February 2024 respectively, before sliding again to 56.97 in March 2024.

But 5G technology continued to grow, though slowly, as it grew from 0.88 per cent in September 2023 to 0.90 per cent in October 2023, with a further slight growth to 0.96 and 1.04 in November and December 2023 respectively. There was a further minimal growth in 5G technology to 1.11 per cent in January 2024, and another minimal growth to 1.18 per cent in February 2024, before reaching 1.24 per cent penetration level in Mach 2024.

Despite the slide in 2G technology penetration level, beginning from the commercial launch of 5G in September 2022, the NCC statistics however made it clear that more subscribers are still connected to the 2G technology at 56.97 per cent penetration level, compared to 5G penetration level at 1.24 per cent as at March 2024.      

Giving reasons for the slow growth of 5G technology, despite the hype about its benefits, the Chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, blamed the slow growth in 5G penetration, on three factors, which he listed to include lack of capital investments in telecoms, high cost of 5G-enebled devices, and the attempt to manage the disposable income of 5G users.   

He said, “Telecoms operations require huge capital investments, but in the last two years, investments in telecoms dropped. Because of the state of the economy, people are not investing in telecoms business, and telecoms operators are not able to invest either, by way of network expansion. 5G for instance, requires heavy investments, but the high cost of 5G equipment is hindering telecoms operators from investing in 5G network.

“The second factor is about the high cost of 5G enabled devices, which is limiting majority of the telecoms subscribers from upgrading to 5G network. 2G enabled devices like smartphones and tablets are much cheaper and because of the low income of many Nigerians, they can only afford to buy 2G enabled devices and therefore prefer to remain on the 2G network.

“The third factor is the disposable income of 5G users, which is adversely being affected by the dwindling economic situation of the country, based on the current inflation trend. Most of them now turn off their data on their mobile devices, when not in use, a development that makes it difficult for callers to reach them whenever their data is turned off. Such subscribers’ behaviour to turn off data when not in use was uncommon in the past, until recently when we started experiencing it, which is a function of the harsh economic challenges that is also affecting 5G growth in the country.”

“The reason for the slow adoption of 5G technology, which is the latest technology, can be traced to lack of real growth in the telecoms sector in recent times, which is a function of lack of the investments in the telecoms sector,” Adebayo further said.