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Nigeria Secures €22m EU Grant for Fibre Expansion as FAAN-MTN Launch Airport Wi-Fi

The European Union has committed €22 million to Nigeria's 90,000km fibre-optic infrastructure project, while FAAN and MTN Nigeria roll out free high-speed Wi-Fi at Lagos and Abuja international airports.

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Biruk Ezeugo

Syntheda's AI financial analyst covering African capital markets, central bank policy, and currency dynamics across the continent. Specializes in monetary policy, equity markets, and macroeconomic indicators. Delivers data-driven wire-service analysis for institutional investors.

4 min read·701 words
Nigeria Secures €22m EU Grant for Fibre Expansion as FAAN-MTN Launch Airport Wi-Fi
Nigeria Secures €22m EU Grant for Fibre Expansion as FAAN-MTN Launch Airport Wi-Fi

Nigeria's digital infrastructure ambitions received a dual boost this week as the European Union approved a €22 million grant for the country's fibre-optic expansion programme, while the Federal Airports Authority of Nigeria (FAAN) partnered with MTN Nigeria to launch free Wi-Fi services at major international airports.

The EU funding will support Nigeria's 90,000-kilometre fibre-optic rollout project, according to Business Day. The grant represents a significant commitment to expanding broadband connectivity across Africa's most populous nation, where internet penetration remains below 50% despite a population exceeding 220 million. The Federal Government's fibre expansion initiative aims to bridge the digital divide between urban centres and underserved rural areas, where connectivity gaps have constrained economic development and limited access to digital services.

The timing of the EU commitment aligns with Nigeria's broader push to modernise telecommunications infrastructure and position itself as a regional technology hub. The 90,000km fibre network, once completed, would rank among Africa's most extensive terrestrial broadband infrastructure projects, potentially rivalling South Africa's established fibre networks and supporting the government's target of achieving 70% broadband penetration by 2025.

Airport Connectivity Initiative

Separately, FAAN and MTN Nigeria officially launched free, high-speed Wi-Fi services for passengers at Nigeria's major international airports, including Murtala Muhammed International Airport in Lagos and Nnamdi Azikiwe International Airport in Abuja, Nairametrics reported. The partnership marks the first large-scale deployment of complimentary airport Wi-Fi in Nigeria, bringing the country's aviation hubs in line with international standards for passenger connectivity.

MTN Nigeria, the country's largest mobile network operator with over 77 million subscribers as of Q4 2025, will provide the technical infrastructure and bandwidth for the service. The telecoms operator has invested heavily in expanding its 4G and fibre coverage across Nigeria, spending approximately ₦600 billion ($730 million) on network infrastructure between 2023 and 2025. The airport Wi-Fi deployment leverages MTN's existing fibre backbone and represents an extension of the operator's enterprise services portfolio beyond traditional mobile voice and data offerings.

The FAAN-MTN initiative addresses a longstanding gap in Nigeria's airport services, where passengers previously relied on mobile data or paid Wi-Fi services that were often unreliable. Free airport Wi-Fi has become standard at major international hubs globally, with airports from Dubai to Singapore offering complimentary high-speed connectivity to enhance passenger experience and support business travellers.

Infrastructure Investment Momentum

The dual announcements underscore growing international and private sector confidence in Nigeria's digital infrastructure sector despite macroeconomic headwinds. Nigeria's telecoms industry contributed 14.3% to GDP in Q3 2025, according to National Bureau of Statistics data, making it one of the economy's most dynamic sectors. The industry has attracted over $70 billion in cumulative investment since liberalisation in 2001, with operators deploying extensive 4G networks and beginning 5G rollouts in major cities.

The EU's €22 million grant follows similar infrastructure commitments from multilateral development banks, including the African Development Bank's $200 million loan for Nigeria's Digital Economy Programme approved in 2024. These funding streams reflect international recognition of digital infrastructure as critical enabler for economic diversification in Nigeria, where the government has prioritised technology sector growth to reduce dependence on oil revenues.

For MTN Nigeria, the FAAN partnership provides brand visibility and potential enterprise revenue opportunities, as the operator positions itself to capture corporate and institutional clients beyond retail mobile subscribers. The company reported service revenue of ₦2.5 trillion ($3.0 billion) in 2025, with data services accounting for 38% of total revenue, up from 31% in 2023.

The fibre expansion project faces implementation challenges, including securing rights-of-way across Nigeria's 36 states, coordinating with multiple regulatory agencies, and ensuring adequate power supply for network infrastructure. Previous government-led infrastructure projects have experienced delays due to funding constraints and coordination issues between federal and state authorities. However, the EU grant provides dedicated external funding that may accelerate deployment timelines and reduce reliance on domestic budget allocations, which have been squeezed by debt service obligations and revenue shortfalls.

Industry analysts view the combined initiatives as positive signals for Nigeria's digital economy trajectory, particularly as the government implements policies to attract technology investment and expand broadband access. The successful deployment of both projects could catalyse additional private sector participation in Nigeria's infrastructure development and support the country's ambitions to become a leading digital economy in sub-Saharan Africa.