In a recent report released by market intelligence firm Mordor Intelligence, the Nigerian telecom market is poised for significant growth, with a projected value of $11.43 billion by the year 2029. The report indicates a steady cumulative average growth rate (CAGR) of 4.70% expected between 2024 and 2029, building upon the current market value of $9.09 billion.

Key factors contributing to this optimistic projection include the substantial transformation witnessed in Nigeria’s telecom sector over recent years, driven by government initiatives aimed at bolstering internet infrastructure and broadband connectivity. Mordor identified the surge in data consumption from both businesses and individuals, the expanding deployment of 5G technology, and ongoing innovations by major telecom vendors as key drivers for the anticipated market growth.

One of the report’s highlights underscores the pivotal role of increased smartphone adoption in Nigeria’s burgeoning digital services sector. Millions of Nigerians are now utilizing mobile apps for social networking, e-commerce, and financial services. Mordor emphasized that these apps leverage smartphones’ capabilities to provide speed, convenience, and efficiency, thereby encouraging more individuals to invest in smartphones.

Additionally, the growing adoption of digital technologies and government support, coupled with the implementation of 5G technology across the nation, are poised to significantly boost the demand for telecom towers.

The surge in e-commerce and digital service platforms has been a crucial factor fueling the demand for reliable telecom services in Nigeria. As more consumers shift towards online platforms for shopping, payments, and other services, the need for a robust telecom infrastructure becomes increasingly essential. Accessing these services through mobile devices is identified as a catalyst accelerating the growth of telecom users in the country.

The launch of the National Digital Economy Policy and Strategy (NDEPS 2020-2030) by the Nigerian government is anticipated to further drive the demand for mobile telecom services. Mordor noted that the policy aims to provide low-cost telecom services to end-users, aligning with the broader objectives of the government’s digital transformation efforts.

The Nigerian Communications Commission (NCC) revealed that active mobile subscriptions in the country reached 220.3 million as of August 2023, with internet service subscriptions standing at 159 million during the same period. Broadband subscriptions accounted for 86.9 million, emphasizing the increasing reliance on high-speed connectivity.

In a significant development, the NCC declared that investments in Nigeria’s telecom industry, comprising foreign direct investment (FDI) and local investment, had reached $75.6 billion as of 2021, showcasing the sector’s attractiveness to both domestic and international investors.

As Nigeria embraces the digital era, the telecom market’s upward trajectory is set to play a pivotal role in the nation’s economic landscape, fostering connectivity, innovation, and economic growth.