Nigeria’s telecom market size to surpass $9billion
By Seun Johnson
The Nigerian telecom market size has been estimated to reach 9.9 billion dollars in 2024 and is expected to hit 11.43 billion dollar by 2029.
In the latest Industry Report compiled and published by Mordor Intelligence, the market is expected to grow at a Compound Annual Growth rate (CAGR) of 4.70 percent during the forecast period.
Over the years, the growth in telecom sector has been mainly driven by various factors among which include bourgeoning population, increasing smartphone penetration, expanding internet access, and government initiatives to promote digital connectivity.
According to Nigerian Communications Commission, NCC, the telecoms sector spurred the country’s economic growth in the third quarter of 2023 by contributing N2. 63tn to Gross Domestic Product, GDP. Although, the figure was said to have witnessed a slight decrease from the N2. 85tn it recorded in the second quarter of same year.
The industry which experienced an unprecedented revolution in 2001 with the introduction of Global System for Mobile Communication (GSM) has consistently experienced a steady growth in Nigeria.
GSM, a digital mobile network that is widely used by mobile phone users in Europe and other parts of the world was introduced in Nigeria with the aim of promoting economic development owing to its provision of easy and effective communication needed to stimulate and enhance trade between Nigeria and its foreign partners across the world.
Until this period, telephony was built on the outdated Nigerian Telecommunications (NITEL) network and several other existing Code Division Multiple Access network operators that have been in existence since the independence.
Between 2001 and 2006, the industry regulator deregulated the telecoms market and granted five years exclusivity period to GSM operators. The decision by NCC was said to have been responsible for the unusual surge in the number of telephone lines which rose from less than 400,000 in 2001 to over 10 million in 2006.
In the 2020 NCC’s Subscriber and Network data report, it was revealed that Nigeria’s telecom industry in 2019 attracted investment worth over $942.86 million. While MTN, Airtel, Globacom and 9Mobile remain the biggest players in the industry, the market has continued to attain its growth through premium connectivity and content services in the country as consumers enjoy robust and forward-looking regulatory regimes for these services.
These major players have consistently enjoyed significant market share at high competition and are racing for innovation that ranges from mass-market entertainment to high-end business connectivity. Among the key strategies adopted to drive market share in the industry are; introduction of new and affordable products and services, mergers, acquisitions, expansion of services or network and bandwidth.
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