Nigeria's Telecoms Market to Worth over $10bn by 2020 – Report
The Nigerian mobile market is expected to record growth from its previous position of 9.2 billion in 2013 to well over 10 billion by the year 2020 while also recording increase on the number of users to about 182 million.
This projection was contained in a report that detailed the findings of market analysts at Pyramid Research, an international consulting firm and market analyst in the communications sector.
This projection means that Nigeria will continue to record a growth pattern in its telecoms sector.
According to the report, the Nigerian telecoms market will witness a slight reduction in the growth rate in 2015 due to the impact of fixed-line disconnections as well as the drop in CDMA usage, but the long-term growth of the telecoms sector will not be affected.
The report also posits that the market will grow at a Compound Annual Growth Rate (CAGR) of 2 percent over the next five years, with mobile data propelling the push at a rate of 16 percent increase till 2019.
An analyst at the co pant was quoted to have said: “Political instability and low oil prices have led to a depreciation of the Naira against the US Dollar, but the telecommunications market will remain an integral part of the country’s efforts to diversify its sources of growth. Other countries in Africa are likely to follow Nigeria when it comes to mobile technology developments. The increasing demand for mobile data will offer service providers, as well as new entrants to the market, ample opportunity to test and grow their service offerings in Nigeria.”
Despite the prevailing uncertainties caused by recent currency devaluations, the Nigerian telecommunications market still offers strong growth rates of around 6.8 per cent per year for the period between 2014 and 2019.
This development is being further strengthened by the resolve of the government through the ministry of communications technology and relevant agencies to increase accessibility to telecoms services by the populace and also increase the broadband penetration rate through special purpose vehicles created.
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