With the current value of the Nigerian Telecom market at $9.09 billion, a new report has predicted that the market value would reach $11.43 by 2029.
The report by market intelligence firm, Mordor Intelligence, revealed that the market is expected to grow at a cumulative average growth rate (CAGR) of 4.70 per cent between 2024 and 2029.
Though the government’s various initiatives to improve the nation’s internet infrastructure and broadband connection have significantly transformed the Nigerian telecom market in recent years, Morodor noted that, various innovations by major telecom market vendors, growth in 5G deployments nationwide, and an increase in data consumption by individuals and businesses will drive the projected market value.
The analysis highlighted further elements driving the nation’s telecom sector’s expansion, adding that, “Increased smartphone adoption in Nigeria has 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 analysed to boost the demand for telecom towers significantly.”
According to Morodor, the rise in e-commerce and digital service platforms in Nigeria has also increased demand for dependable telecom services, adding that as more people turn to online platforms for payments, shopping, and other services, a robust telecom infrastructure is becoming increasingly necessary.
The report also said the Nigerian government’s announcement of the National Digital Economy Policy and Strategy (NDEPS 2020–2030) would increase demand for mobile telecom services in Nigeria since they can be used to offer end customers low-cost telecom services.
The report further observed that the launch of the National Digital Economy Policy and Strategy (NDEPS 2020-2030) by the Nigerian government would fuel the demand for mobile telecom services in Nigeria due to its application in providing low-cost telecom services to the end users.
“Additionally, in October 2022, The Nigerian Communication Commission 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.
“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 telecom services in Nigeria during the forecast period,” it added.
