Technology
Affordability Barrier to Internet Access in Nigeria—Research
By Dipo Olowookere
Compelling Mozilla-backed research, carried out by Research ICT Africa, finds that significant barriers to internet access remains in four African countries – Rwanda, Kenya, Nigeria and South Africa.
The research aims to understand, from a comparative perspective, how the citizens use the internet when data is subsidised and when it is not.
Knowing that affordability is one of the primary barriers to Internet access and particular optimal use, the main objective of the focus groups was to obtain qualitative information that reflects the perceptions of female and male Internet users, new users, and non-Internet users from urban and rural locations about how people use the Internet.
A 2016 International Telecommunications Union report estimates that only about 25 percent of the population of Africa has access to the internet.
It was discovered that in all the countries, across demographics, access to subsidised data did not result significantly in new users going online.
Also, use of subsidised data is just one of many strategies employed by users to manage costs in these four African countries.
Furthermore, uptake of zero rating varied across the four countries. Awareness was low and scepticism of free services was high in Nigeria, whereas in Rwanda bundles with unlimited WhatsApp and Facebook were very popular. In Kenya and South Africa, the zero-rated services were welcomed for their cost-reducing nature.
In addition, there was substantial interest and uptake in Equal Rating-compliant, partially subsidized data bundles that provide access to the entire internet not just some parts of it (e.g., Cell C’s offering of 250MB between 1 am and 7 am for R6 in South Africa or an MTN bundle in Rwanda for Rwf 800 (USD 0.96) that provide 24 hours unlimited data).
Likewise, poor network quality and coverage limited the consumption of subsidised data since some respondents, especially in rural areas of Kenya, Rwanda and South Africa, reported that telcos with those offerings did not have coverage in their area. Indeed, many of these users only have access via the most expensive operator in that country.
Equally, women face additional barriers to internet use, including concern of being exposed to inappropriate content online and its consequences in their intimate relationships and family responsibilities.
“Our research reveals that a significant urban-rural divide remains in opportunities to access the internet.” said Dr Alison Gillwald, Executive Director of Research ICT Africa. “Too often the debate over zero rating glosses over the fact that many people in rural communities don’t even have access to the best subsidized offerings and have to spend largely disproportionate amounts of their already low income on mobile access, and that’s assuming they can even find electricity to charge their devices.”
“Given all the controversy around zero rating, it’s surprising to see how few research respondents in these African countries actually use or depend on zero rated data. We are, however, seeing a lot of interest in Equal Rating compliant models which provide access to all of the internet, not just some parts of it,” said Jochai Ben-Avie, Senior Global Policy Manager at Mozilla. “More must be done to connect the unconnected. This research makes clear that it’s critical we all focus more on barriers like healthy competition outside urban areas, electricity, digital literacy, and gender power relations.”
Mozilla-backed research reveals affordability a barrier to internet access in Nigeria
Zero rated services are still relatively new to the Nigerian market, with Airtel launching Facebook’s Free Basics and Facebook Flex only last year. Awareness and use of zero rating remains low in Nigeria, a country which enjoys some of the cheapest data prices in Africa.
Results of the research showed that many rural users see the internet as their access to the civilized world and the gateway to the places around the globe where they have friends and family.
In addition, overall awareness and use of the internet has gained traction especially as social interactions, business or career enabler, and majority of participants, whether in rural or urban areas, rank the purchase of data high on their personal expense list.
Furthermore, there is a general belief that mobile network operators charge a hidden tariff, and whatever airtime is on the phone will be eventually deducted by the operator if one subscribes to a subsidized service.
Also, many non-users want to use a “big phone” (a smartphone) and would rather wait until they can afford one than use a more limited version of the internet.
Though the price of brand new smartphones keeps dropping and they can be bought for as low as $20, affordability challenges persist.
“Even in a country with some of the lowest rates for data and devices in Africa, the cost of buying a smartphone in Nigeria is still a challenge for many,” said Dr Alison Gillwald, Executive Director or Research ICT Africa. “Affordability gets disproportionate attention, but we need to do much more to improve digital literacy and supply side issues like network quality and speed.”
“This research demonstrates that Nigerians want access to all of the internet, not just some parts of it,” said Jochai Ben-Avie, Senior Global Policy Manager at Mozilla. “If we’re to bring all the internet to all people, we need to do more to improve digital literacy and understanding of the internet, especially among low-income individuals and those in rural and deep rural communities. At Mozilla we believe in equal rating for all internet users so that this shared global resource is not held hostage by the wealthy.”
Mozilla-backed research reveals Kenyans offline due to prohibitive costs and security fears
The Communications Authority of Kenya reports that some 38 million people – about 82 percent of the population – were online in 2016. The four mobile operators in the country have 4G internet connections on mobile but not in all parts of the country.
Researchers’ gathered that social media tops the list of uses for the internet and there is even a perception among some users that the internet is about social media just like the price of data bundles and internet-enabled phones render the cost of doing what most users want to do online prohibitive to many.
Also, strategic solutions for high costs include working late into the night before reward bundle periods expire, visiting friends who have Wi-Fi at home, and using multiple promotions from different operators, while even when people have smartphones, they do not always carry them for offline security reasons. In particular, there are concerns that, thieves may frequent areas with free public Wi-Fi in order to steal patrons’ internet enabled devices.
Furthermore, national network coverage was seen to be a challenge for both voice and data particularly in rural areas.
“While internet access is good in Kenya relative to elsewhere in Africa, real barriers remain to internet use,” said Research ICT Africa Executive Director Dr Alison Gillwald. “If we don’t look beyond access issues to the real concerns around privacy and security, for example, we’ll never bring all of the internet to all people.”
“One participant in this study reported concerns about getting skin cancer from their phone, proving there’s a lot more we still need to do to improve digital (and health) literacy,” said Mozilla Senior Global Policy Manager Jochai Ben-Avie. “At the same time, Kenyan internet penetration is on par with some of the most developed countries, and that’s due to the ingenuity of Kenyans to find ways to connect despite the relatively high cost of data.”
Mozilla-backed research reveals heavy use of subsidized data in Rwanda
Internet use and access in Rwanda has been exploding largely due to the Government of Rwanda’s Vision 2020 to enable Rwanda to leap-frog the key stages of industrialization and transform her agro-based economy into a service, information-rich and knowledge-based one that is globally competitive. While internet penetration is relatively high, the diversity of content accessed by participants in this study is relatively low. This is of concern.
Results of the research showed that most participants only use a very limited number of websites and services, and make heavy use of subsidized data.
While the use of subsidized data services allows mobile network operators to retain a large number of subscribers that use the internet, an Airtel representative was quoted as saying the company is considering ending their current zero rating offers because the majority of users that are benefiting from zero rated services are no longer using other services, and therefore are not spending on data.
It was also found out that the types of bundles and packs from the three MNOs keep changing almost every week due to tough competition going on, and some promotion offers – including zero rated services – are not even publicized on the website to prevent competitors access to the information.
In addition, the majority of participants with mid or high income when asked how they would react if subsidized data was no longer available, responded that they may reduce the time spent on the internet, while participants with low incomes responded that they may stop using the internet.
Significant access barriers remain, especially in remote areas, including the cost of data as well as illiteracy and lack of understanding of foreign languages to manipulate devices and understand internet content, the research discovered.
“Rwanda has been a real leader in bringing people online, including through innovative models like internet connected buses and other public Wi-Fi efforts,” said Dr Alison Gillwald, Executive Director or Research ICT Africa. “The limited number of sites and services Rwandans use points to the need for the government and other stakeholders to consider issues beyond access that leave many Rwandans accessing just a small part of the internet.”
“While it’s inspiring to see the boom in internet access in Rwanda, many Rwandans are still stuck in the walled gardens of subsidized services and haven’t experienced the full diversity of the open internet,” said Jochai Ben-Avie, Mozilla’s Senior Global Policy Manager. “Rwanda is a fascinating testbed of different experiments in connecting the unconnected and we hope the Government of Rwanda and other stakeholders will focus on solutions like Equal Rating that seek to bring all of the internet to all people.”
The research sees opportunity and a greater outlook in the future of internet use for these countries. Infrastructural issues still need to be addressed in rural areas, in particular to increase quality of service, which would allow users to choose any operator offering the cheapest product. The intensity of use could be enhanced through redirecting universal services funds directed at access, often by subsidising the already planned roll out of services, towards supporting the rollout of public Wi-Fi points at all public facilities such as schools, clinics, libraries and police stations.
Other factors limiting the digital participation of the poor and unskilled, particularly women, will require policy interventions than extend way beyond digital policy to the much greater challenges of human development. Without interventions to redress broader social and economic inequality in society more the entry of more sophisticated services and devices will amplify digital inequality.
By Adedapo Adesanya
The Nigerian Communications Commission (NCC) has warned that Nigeria’s internet future is at risk, with IPv6 adoption stuck at just five per cent while global reserves of IPv4 addresses are completely exhausted.
Speaking at the inauguration of the Nigeria IPv6 Council in Lagos, the chief executive of the NCC, Mr Aminu Maida, described the moment as “a defining moment in Nigeria’s digital evolution,” but said major gaps remain.
IPv4 and IPv6 are two versions of the Internet Protocol (IP) addressing system. IP is a set of communication rules that provides data exchange over the Internet. His warning indicates that Nigeria is still relying on an obsolete internet addressing system, and unless it accelerates IPv6 adoption, it could face slower growth, higher costs, and reduced competitiveness in the digital economy.
“According to our 2026 approval measurements, Nigerians’ IPv6 adoption stands at approximately five per cent, while leading economies have surpassed that.
“Global IPv4 reserves are exhausted, while the rapid expansion of IT networks, IoT, cloud services and AI-driven applications has pushed the limits of legacy internet addressing,” Mr Maida said.
He stressed that the transition to IPv6 was no longer optional but “a strategic necessity for national competitiveness, security and economic sovereignty.” The council, established as a national chapter of the global IPv6 Forum in 2014, has led advocacy efforts over the past four years, but Maida said more coordinated action was required.
“This is not a task any single institution can accomplish alone. It demands collaboration among regulators, operators, enterprises, academia and consumers,” he stated.
He added that the NCC had signed a Memorandum of Understanding with an international partner for capacity building across the public sector, while some government agencies and private organisations have launched pilot IPv6 deployments.
The NCC EVC charged the newly inaugurated council members to deliver quarterly progress updates, drive capacity building with academic institutions, lead migration of government networks, and unlock industry investment in IPv6 infrastructure.
“The time for adoption and prioritisation of IPv6 deployments across your networks and platforms is now. “The decisions you make today will determine Nigeria’s digital competitiveness,” he added.
Speaking about the newly inaugurated Council, the National President of the IPv6 Council, Mr Muhammed Rudman, emphasised that Nigeria lagged behind in IPv6 adoption.
He said Nigeria’s internet readiness trailed global standards, with only about five per cent of internet users connected via IPv6 compared to a 40 per cent global average.
Mr Rudman noted that Africa’s average stands at six per cent, putting Nigeria below the continental benchmark despite its large digital economy.
He identified key challenges: the continued availability of IPv4 addresses in the AfriNIC region, lack of financial support for training, and no urgent push from ISPs because IPv4 still meets customer needs. “It doesn’t affect their bottom line,” he said.
The Interswitch Retail Summit 2026 will convene on April 23, 2026, at the Lagos Marriott Hotel Ikeja, bringing together senior leaders across Nigeria’s retail ecosystem for a focused conversation on the future of commerce. The forum, themed “The Modern Retail Playbook: What Works, What’s Changing, What’s Next?”, is designed to foster meaningful, execution-driven dialogue among decision-makers and key industry stakeholders. At its core, the event aims to bridge the gap between insight and action in a rapidly evolving market.
Nigeria’s retail sector is undergoing a profound and inevitable evolution. The familiar structures that once defined how businesses operate, how customers engage, and how transactions are completed are steadily giving way to a more dynamic, technology-driven ecosystem. For many organisations, this shift has moved beyond theory into daily reality, where decisions around growth, efficiency, and customer experience must now be made within the context of constant change.
At the centre of this evolution is the growing influence of digital technology. Consumers are more informed, more connected, and more demanding than ever before. They expect seamless interactions, faster service, and consistent experiences across both physical and digital channels. Meeting these expectations requires more than incremental improvements; it calls for a fundamental rethinking of how retail operations are structured, delivered, and scaled.
Leadership, therefore, has taken on a more integrated and strategic role. Today’s Chief Executive Officers (CEOs), Chief Technology Officers (CTOs), and Chief Financial Officers (CFOs) are not just managing their respective functions; they are collectively responsible for navigating a new kind of business environment. Strategy, technology, and finance are no longer separate conversations; they intersect in ways that directly influence an organisation’s ability to compete and grow.
Across Nigeria, there are already clear signs of adaptation. Retailers are leveraging data to better understand customer preferences and tailor their offerings in real time. Payment solutions are becoming more seamless, reducing friction at checkout and enabling new forms of commerce. At the same time, partnerships across the ecosystem are unlocking efficiencies and opening new pathways for growth. Yet, while progress is evident, it remains uneven.
Many organisations are still grappling with how to translate emerging trends into practical strategies that deliver measurable outcomes. This underscores the importance of platforms that bring industry leaders together. When decision-makers exchange ideas, challenge assumptions, and learn from one another, the entire ecosystem benefits. It is through these shared conversations that best practices are refined, new approaches are tested, and meaningful progress is accelerated.
As a company with over two decades of experience enabling digital payments and commerce across Africa, Interswitch Group has seen firsthand how collaboration drives innovation. Its work across retail and the broader commerce ecosystem reinforces a simple but powerful reality: the most effective solutions are often developed through partnership. Whether it is integrating payment systems, improving operational efficiency, or enhancing customer engagement, the ability to work across boundaries is becoming a defining feature of successful organisations.
The timing of the forum is particularly significant. Nigeria’s economic landscape continues to evolve, presenting both challenges and opportunities for businesses. Rising operational costs, shifting consumer spending patterns, and increased competition are prompting organisations to rethink traditional approaches. At the same time, advances in technology are opening new possibilities for efficiency, scalability, and innovation. Navigating this dual reality requires a balanced approach, one that combines strategic foresight with disciplined execution.
Operational efficiency will be a key area of focus at the forum. In a competitive environment, the ability to streamline processes, reduce waste, and optimise resources can significantly impact performance. Technology plays a central role in enabling this shift through automation, improved visibility, and more informed decision-making. However, unlocking these benefits requires more than tools; it demands organisational alignment and strong leadership commitment.
The forum will also explore the future of retail in Nigeria, with a focus on emerging trends and their implications for business strategy. From the rise of omnichannel retailing to the growing importance of data-driven insights, the forces shaping the industry are increasingly interconnected. Understanding these dynamics is essential for leaders looking to position their organisations for sustained success.
Ultimately, the evolution of Nigeria’s retail sector is not a distant prospect; it is already underway. The question for business leaders is no longer whether they will be affected, but how they will respond. Will they take a proactive approach, seeking out insights and building the partnerships needed to thrive, or will they struggle to keep pace with change?
Platforms like the Interswitch Retail Summit 2026 offer a timely opportunity to choose the former. By bringing together the individuals shaping the future of retail, the forum creates space for learning, collaboration, and decisive action. In a rapidly evolving landscape, such platforms are no longer optional; they are essential for leaders looking to build resilient, future-ready retail businesses in Nigeria.
By Aduragbemi Omiyale
Four Nigerian firms have been selected to join the 10th Google for Startups Accelerator Africa Cohort, which began on April 13 and will end on June 19, 2026.
Fifteen companies are participating in the hybrid programme, which will receive dedicated guidance from experienced mentors and industry experts, alongside hands-on technical workshops focused on AI and machine learning.
The four Nigerian startups chosen for this scheme include Bani, MasteryHive AI, Regxta, and Termii.
They were picked from an exceptionally competitive pool of nearly 2,600 applications. The beneficiaries are utilising Artificial Intelligence (AI) to address critical local and regional challenges.
As for Bani, it is a cross-border payments infrastructure platform eliminating settlement delays for African businesses trading globally, while MasteryHive AI is an AI-native platform automating transaction reconciliation, fraud detection, and AML monitoring.
On its part, Regxta combines alternative data-driven credit scoring with a hybrid digital-agent distribution model to deliver financial products to unbanked micro businesses, while Termii uses its AI-native communications infrastructure platform to ensure reliable financial messaging for banks and fintechs.
African tech founders are actively solving fundamental infrastructural challenges, bridging gaps in financial inclusion, healthcare, and supply chains with complex AI.
The continent’s venture ecosystem showed remarkable resilience by raising $3.9 billion in 2025. However, scaling deep-tech solutions requires specialised technical infrastructure, advanced cloud capabilities, and strategic mentorship to complement this capital.
Accelerator initiatives provide these exact tools, ensuring local innovations can sustainably grow into businesses that power the continent’s digital economy.
“At Termii, we’re building AI-powered infrastructure that ensures financial transactions don’t fail, from login PINs to payment OTPs and fraud alerts.
“The Google Startup Accelerator is helping us accelerate our AI roadmap and scale globally, and even in the first week, access to technical support and insights has been incredibly valuable for our next phase of growth,” the chief executive of Termii, Mr Gbolade Emmanuel, stated.
“We are absolutely thrilled to welcome these exceptional founders into Class 10. African startups are driving essential economic growth and social development.
“Our role is to serve as a supportive partner, providing these developers and founders with the technical infrastructure, mentorship, and global network they need to scale their solutions and amplify their real-world impact,” the Head of Startup Ecosystem for Google Africa, Mr Folarin Aiyegbusi, disclosed.
Since launching in 2018, the Google for Startups Accelerator Africa program has supported 106 startups from 17 African countries, empowering them to collectively raise over $263 million and create more than 2,800 jobs.
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