Nigeria Telecom Market Size was valued at USD 8.8 Billion in 2022. The telecom market industry is projected to grow from USD 9.25 Billion in 2023 to USD 13.887 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.20% during the forecast period (2024 - 2032). The Nigeria telecom market has grown significantly as a result of a number of market drivers, including the rising use of mobile phones, the accessibility of low-cost smartphones, the development of mobile financial services, and better network infrastructure.
Figure 1: Nigeria Telecom Market Size, 2024-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Growth in Broadband Demand to Boost the Market Growth
The primary driver of Nigeria's telecom market expansion is the rise in broadband demand. There is a growing need for high-speed broadband connections as a result of the extensive use of the Internet. Telecom companies have been compelled by this to modernize their network architecture in order to accommodate more bandwidths and quicker speeds. The need for telecommunications services in Nigeria is expanding quickly as it gets increasingly interconnected. To maintain daily activities, access information and services, and stay connected with one another, people and businesses need fast and dependable connectivity. Nowadays, billions of people worldwide use mobile devices like tablets and smartphones, making them ubiquitous. The need for mobile data services, like texting and internet access, in Nigeria has significantly increased.
The main factor affecting the Nigeria telecom market's growth is technological progress. With the introduction of new technologies like 5G networks, the Internet of Things (IoT), and artificial intelligence (AI), telecom services have seen substantial evolution in recent years. Telecom services are expanding because these technologies make it possible to provide new services and enhance the functionality of already available services. AI is being utilized to enhance the dependability and efficiency of telecom services, ranging from customer support to network management. Artificial Intelligence has the potential to anticipate and mitigate network problems, enhance network efficiency, and offer customized client service. Thus, driving the telecom market revenue.
Nigeria Telecom Services Insights
The Nigeria Telecom market segmentation, based on services, includes Mobile Services, Fixed Internet and Data Services, and Fixed Line Services. The mobile services segment dominated the market mostly. Nigeria's market for mobile services is being driven by the country's rising smartphone adoption and mobile plan membership rates. For instance, the Nigerian Communications Commission, the country's telecom regulator, stated in February 2023 that the country's active mobile telecommunication plan subscriptions reached around 222,571 million in December 2022, demonstrating the demand for mobile services in Nigeria. Furthermore, mobile telecommunication services are essential to the operation of the Internet of Things in a business that gathers, transfers, and shares data online, which propels the nation's adoption of mobile services.
Figure 2: Nigeria Telecom Market, by Services, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Nigeria Telecom End User Insights
The Nigeria Telecom market segmentation, based on end user, includes Enterprises (SMES, Large Enterprises) and Customers. The customers category generated the most income driven by a number of variables, including population growth, a rise in the use of smartphones, an increase in internet access, and government programs to support digital connectivity. The need for dependable telecom services has also been fueled by Nigeria's explosion in e-commerce and digital service platforms. An effective telecom infrastructure is becoming more and more necessary as more customers turn to online channels for payments, shopping, and other services. The ease with which these services can be accessed on mobile devices has expedited the rise in the number of telecom subscribers.
Telecom Country Insights
Over the past few years, the Nigerian telecom market has experienced significant transformation due to a number of government initiatives aimed at improving the nation's internet infrastructure and broadband connection, an increase in data consumption by both individuals and businesses, the country's growing 5G deployments, and a number of innovations from major telecom market vendors operating in Nigeria. Additionally, the spread of Internet of Things (IoT) solutions is transforming a number of industries by facilitating increased automation, efficiency, and consumer satisfaction. The rapid growth of IoT usage is causing a significant upheaval in the Nigerian telecom business. Along with these partnerships and developments, the country's rolling out of 5G technology is expected to further increase demand for telecom towers, as will the increased use of digital technologies and government assistance in promoting them. Moreover, millions of Nigerians utilize financial services, e-commerce, and social networking sites on their mobile devices. By utilizing the speed, ease, and efficiency that smartphones provide, these apps may persuade more people to purchase smartphones.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the telecom market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Nigerian telecom industry must offer cost-effective items.
Major players in the telecom market are attempting to increase market demand by investing in research and development operations, including MTN Nigeria Communications PLC, Airtel Networks Limited (Airtel Africa PLC), 9Mobile (Emerging Markets Telecommunication Services Ltd), Globacom Limited, Broad Based Communications Limited, Main one service company limited, Fiberone Broadband Limited, SpaceX LLC, ipNX Nigeria Limited, Tizeti Network Limited, Backbone Connectivity Network (Nigeria) Limited, Viasat Inc., and Ngcom Networks Solutions.
In February 2023, the Nigerian Communications Commission posted in its report that while the country had approximately 156 million mobile active subscribers in December, mobile active plan subscriptions have increased to roughly 222,571 million. Which shows the demand for mobile services in Nigeria.
Nigerian Communication Commission reported in October 2022 that Nigeria's active broadband subscriptions were largely composed of 3G and 4G networks, with 44.5 percent of the overall broadband subscriptions in Nigeria, and has set an ambitious goal of increasing this number to 70% by the year 2025.
Mafab Communication announced in January 2023 that the wireless service provider has begun offering 5G mobile network services in Nigeria's capital city, Abuja. Through this entry, Nigeria has joined to be one of the few African countries with the latest technology available to its country, the 5G.
In May 2023, Tizeti expanded the scope of its partnership with Microsoft, and the companies commenced work on addressing the problems of broadband underdevelopment. This makes it possible to provide high-quality, low-cost, fast Internet access to the people of the country who remain outside the influenced areas.
In June 2023, Nigerian telecoms operator Globacom announced that it is deploying its 4th generation LTE Advanced mobile network in Nigeria, in which the company targeted at enhancing its data services to meet the demands of growing bandwidth from Nigerian telecom subscribers. Furthermore, the company has backed up this strategic shift by including plans to add 4000 more LTE Advanced sites across major cities in Nigeria with the aim of addressing future demand for high-speed internet in the region by 2023.
In the announcement of February 2023, Tizeti made it known that the firm is expanding its 4G LTE Network coverage to ten states in Nigeria. These include Delta, Akwa Ibom, Cross River, Abia, Anambra, Imo, Enugu, and the federal capital Abuja, Kano and Kaduna. This step enables people and enterprises within these ten states to have an unlimited supply of high-speed broadband.
Nigeria Telecom Market Segmentation
Telecom Services Outlook
Mobile Services
Fixed Internet and Data Services
Fixed Line Services
Enterprises
SMES
Large Enterprises
Customers
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 8.8 Billion |
| Market Size 2023 | USD 9.25 Billion |
| Market Size 2032 | USD 13.887 Billion |
| Compound Annual Growth Rate (CAGR) | 5.20% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Services, End User, and Region |
| Countries Covered | Nigeria |
| Key Companies Profiled | MTN Nigeria Communications PLC, Airtel Networks Limited (Airtel Africa PLC), 9Mobile(Emerging Markets Telecommunication Services Ltd), Globacom Limited, Broad Based Communications Limited, Main one service company limited, Fiberone Broadband Limited, SpaceX LLC, ipNX Nigeria Limited, Tizeti Network Limited, Backbone Connectivity Network (Nigeria) Limited, Viasat Inc., and Ngcom Networks Solutions |
| Key Market Opportunities | 5G Implementations Creating Acceleration |
| Key Market Dynamics | Increased Smartphone Penetration IoT Usage in Telecom Is Growing |
Frequently Asked Questions (FAQ) :
The Nigeria Telecom market size was valued at USD 9.25 Billion in 2023.
The market is projected to grow at a CAGR of 5.20% during the forecast period, 2024-2032.
The key players in the market are MTN Nigeria Communications PLC, Airtel Networks Limited (Airtel Africa PLC), 9Mobile(Emerging Markets Telecommunication Services Ltd), Globacom Limited, Broad Based Communications Limited, Main one service company limited, Fiberone Broadband Limited, SpaceX LLC, ipNX Nigeria Limited, Tizeti Network Limited, Backbone Connectivity Network (Nigeria) Limited, Viasat Inc., and Ngcom Networks Solutions, among others.
The mobile services category dominated the market in 2023.
The customers category had the largest share of the market.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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