The Nigerian telecoms market size has been estimated at $9.09 billion in 2024, and is expected to reach $11.43 billion by 2029, growing at a CAGR of 4.70 per cent between 2024 and 2029. This was revealed by market intelligence firm, Mordor Intelligence, in its recent report of Nigerian tele- coms sector. Noting that the Nigerian telecoms market had undergone significant transformation over the past few years owing to various initiatives taken by the government to boost the country’s internet infrastructure and broadband connection, the firm stated in the report that growth in data consumption from businesses as well as individuals, growth in 5G deployments across the country and various innovations by the significant telecoms market vendors operating in Nigeria would drive the projected revenue.

“The proliferation of Internet of Things (IoT) solutions is revolutionising various sectors, enabling improved efficiency, automation, and enhanced user experiences. The Nigerian telecom market is experiencing a profound transformation with the rapid growth of IoT usage,” it stated. It added that increased smartphone adoption in Nigeria had fueled the development of a dynamic digital services sector. “Currently, millions of Nigerians use mobile apps, including social networking sites, e-commerce, and financial services. These apps could leverage smartphones’ capabilities to offer speed, convenience, and efficiency, encouraging more people to invest in smartphones. “In addition to these expansions and collaborations, the growing adoption of digital technologies and government support in aiding the same alongside the 5G technology implementation across the country is analyzed to boost the demand for telecom towers significantly.

“Moreover, the long-term ROI for heavy Capex investments in advanced telecom infrastructure may be uncertain, particularly in rapidly evolving technology environments. Factors such as changing consumer preferences, regulatory dynamics, and market disruptions can impact the revenue streams and payback periods for Capex-intensive projects, creating risk for telecom operators. “With COVID-19, the telecoms industry witnessed a significant increase in demand for Internet services, owing to most of the population staying at home and corporate offices employing remote working conditions. “The increase in people working from home has led to a rise in the de- mand for downloading, online video viewing, and communication through video conferencing, all leading to increased network traffic and data usage.

However, these trends have been limited to countries where the internet penetration and digital transformation of the end-users are high,” it added. Meanwhile, the report projected that mobile services, which include Mobile Data Services, Voice Services, Text and Multimedia Messaging, and Other Mobile Services, that can be operated on mobile netaqworks such as 2G, 3G, 4G, 5G, etc, will hold major market share. It further noted that the increasing smartphone penetration in the country, with mobile plan subscriptions, was fueling the market for mobile services in Nigeria. For instance, in February 2023, the Nigerian Communications Commission (NCC), the Nigerian telecom regulator, reported that the number of active mobile telecommunication plan subscriptions in the country reached about 222,571 million in December 2022, which shows the demand for mobile services in Nigeria.

Additionally, in October 2022, the NCC stated that the country’s broadband subscriptions majorly depend on 3G and 4G networks contributing 44.5 per cent of the total broadband subscriptions in Nigeria, and the regulator has planned an objective to increase it to 70 per cent by 2025. In July last year, the NCC also declared that investments in the country’s telecom industry comprising foreign direct investment (FDI) and local investment, had reached $75.6 billion as of 2021. The research firm said highspeed mobile Internet, such as 4G and 5G, can support businesses’ transforming supply chain management to create smart and efficient manufacturing in the country due to its networking application in the cloud computing services in the business environment. It added that mobile telecommunication services are used in the functioning of the Internet of Things in an enterprise that collects, transmits, and shares data via the Internet, driving the adoption of mobile services in the country.

“Further, the Nigerian government has launched the National Digital Economy Policy and Strategy (2020-2030) aimed at repositioning the Nigerian economy toward opportunities that digital technologies provide and diversifying the economy, which would require voice and data services in the country and fuel the demand for mobile tele- coms services in Nigeria due to its application in providing low- cost telecoms services to the end users. “Therefore, the demand for data and voice services in the consumer segments, the increase in the number of smartphones, and the country’s national digital economy policy are driving the adoption of mobile services in Nigeria, supported by the vendors’ partnerships and expansion to offer 4G and 5G based mobile telecoms services in Nigeria during the forecast period,” it stated stated.