Nigeria Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Last updated: 24 Nov 2023 Update History

Report Status: Current

Report Pages: 267

Analyst: Henry Lancaster

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Summary
Table Of Contents

Nigeria’s telcos struggle with poor investment climate

In recent years Nigeria’s telecom sector has benefitted from a range of regulatory measures aimed at improving competition and developing infrastructure. The government’s aim to increase broadband penetration to 70% by the end of 2025 as part of a national broadband plan remains ambitious, given that the penetration rate was below 50% as of August 2023. Broadband services are predominantly delivered via mobile networks, but while there is some investment in fibre infrastructure one promising platform is satellite connectivity. SpaceX launched commercial services in February 2023, providing national coverage with download speeds vastly superior to the national average. Other satellite options also exist, including services provided by the ISP Tizeti based on Eutelsat’s Ka-band connectivity (Konnect), and the NigComSat 2 satellite which delivers 5G backhaul services for MNOs.

The government’s 5G policy has been supported by the award of spectrum. Mafab Communications, Airtel Nigeria, and MTN Nigeria have all launched commercial services, though their reach is limited: MTN Nigeria’s 5G network is the largest though still covered only 7.5% of the population by September 2023.

The sector continues to face economic challenges, notably from unfavourable forex conditions which make the country less attractive to foreign investors, and by the plethora of taxes for telecom services.

Key developments:

Mafab Communications launches 5G services.
Tizeti secures NIDF funds to expand its network across 15 states.
Starlink launches satellite broadband services in Nigeria.
Nigeria’s broadcasters object to planned reassignment of 600MHz spectrum for telecom use.
MTN Nigeria drops IHS Holding in preference for ATC as its partner to manage its portfolio of mobile towers.
More than 500,000 5G users in Nigeria.
Report update includes the regulator’s market data to August 2023, operator data to Q3 2023, updated Telecom Maturity Index charts and analyses, assessment of the global impact of the pandemic on the telecoms sector, recent market developments.

Companies mentioned in this report:

Nigerian Telecommunications (ntel, Nitel, Pentascope, Transcorp, M-Tel), Africa Mobile Networks, Globacom (Glo Mobile), VGC Communications (MTN Nigeria), Nepskom Communications, MTS First Wireless, Suburban Telecom, Backbone Connectivity Network (BCN), Traffic Network Services, Fibre Tech West Africa, Phase3 Telecom, Alheri Engineering, Mobitel Nigeria, Prestel (O-Mobile), Galaxy Backbone, 21st Century Technologies, Main One (Mainstreet Technologies), Brymedia, NigComSat, O3b Networks, WASACE, Linkserve, Pinet Informatics, Odu’a Telecom, Swift Networks, Startech Connection, Netcom Africa, MWEB Nigeria, Accelon (Internet Solutions), Polestar, Naija Wi-Fi, Suburban Telecom, Zinox, Starcomms, Layer3, Airtel Nigeria (formerly Zain, Celtel), 9Mobile (Etisalat Nigeria, EMTS, Mubadala), Visafone, Starcomms (Capcom), Multi-Links, Reliance, Econet Wireless, Vodacom.

Key statistics
Regional Africa Market Comparison

Market characteristics
Market Leaders
Market Challengers
Market Emergents
TMI vs GDP
Mobile and mobile broadband penetration
Fixed versus mobile broadband penetration

Country overview
Telecommunications market
Regulatory environment

Regulatory authority
Fixed-line developments

National Telecommunications Policy (NTP)
Nigerian Communications Act
West African common regulatory framework
Interconnection
Infrastructure sharing
Telecom taxes
Universal service
National Rural Telephony Program (NRTP)
National Information Technology Development (NITD) Fund
Backbone Transmission Infrastructure Project (BTRAIN)
Telecom sector liberalisation
Globacom’s SNO licence
Regional fixed-wireless access (FWA) licences
International gateway licences
Unified licensing regime
Privatisation of Nitel

Mobile network developments

GSM licence terms
Spectrum
Mobile Termination Rate (MTR)
Mobile tariffs
Unified licensing regime
Universal service
Mobile Number Portability (MNP)
Quality of Service
SIM card registration

Mobile market

Market analysis
Mobile statistics

Mobile voice

Mobile infrastructure

International gateways
National mobile infrastructure plan
Tower infrastructure
Analogue networks
Digital networks
Other infrastructure developments
Mobile data
Mobile broadband

Major mobile operators

MTN Nigeria
Airtel Nigeria
Globacom
9Mobile (Etisalat Nigeria, EMTS, Mubadala)
M-Tel

Major CDMA mobile operators

Multi-Links Telkom
Reliance Telecommunications (Reltel, Zoom)
Starcomms (Capcom)
InterC Network (Intercellular Nigeria)
Visafone
MVNOs

Mobile content and applications

Mobile money transfer, m-banking
Service providers
Payment Service Banks
M-health

Fixed-line broadband market

Introduction and statistical overview

Market analysis
Internet Exchange Points (IXP)
National Broadband Plan
Broadband statistics

Digital Subscriber Line (DSL) networks

Providers

Fibre-to-the-Premises (FttP) networks
Other fixed broadband services

Broadband over Powerlines (BPL)
Fixed wireless

Fixed network operators

Nigerian Telecommunications (Nitel)

National backbone network
Wireless Local Loop (WLL)

Globacom

Network infrastructure
Fibre backbone network
International presence
Services
International expansion

VGC Communications
National Long-Distance Operators (NLDO)
Mafab Communications
Fixed-wireless network operators

MTS First Wireless
Mobitel Nigeria
Prestel (O-Mobile)
Regional FWA operators

Telecommunications infrastructure

Overview of the national telecom network
Backbone networks

National Information Infrastructure Backbone (NIIB)
NIPTI
Suburban Telecom
Phase3 Telecom
Backbone Connectivity Network (BCN)
Private networks

International terrestrial infrastructure

The Central African Backbone (CAB)
Nigeria – Niger link
Trans-Saharan Backbone
NNPC network

International submarine infrastructure

SAT-3/WASC
Glo-1
MainOne
WACS
ACE
WASACE
Equiano
Djoliba
2Africa submarine cable

Satellite

Rascom
NigeriaSat-1
NigComSat
O3b Networks
Starlink

Data centres

Appendix – Historic data
Glossary of abbreviations
Related reports

List of Tables

Table 1 – Top Level Country Statistics and Telco Authorities – Nigeria – 2023 (e)
Table 2 – Development of telecom revenue by sector (NGN billion) – 2017 – 2022
Table 3 – Change in telecom sector contribution to GDP – 2012 – 2023
Table 4 – Change in the number of outgoing mobile number portings – 2013 – 2023
Table 5 – Development of mobile sector financial data (NGN billion) – 2017 – 2022
Table 6 – Growth in the number of active mobile subscribers and penetration – 2012 – 2027
Table 7 – Change in the number of mobile subscribers by operator (million) – 2014 – 2023
Table 8 – Change in the market share of mobile subscribers by operator – 2012 – 2023
Table 9 – Change in the number of prepaid mobile subscribers – 2012 – 2022
Table 10 – Change in the market share of mobile subscribers by platform – 2023
Table 11 – Population coverage by mobile platform – 2022
Table 12 – Increase in data traffic – 2018 – 2023
Table 13 – Growth in SMS traffic – 2012 – 2022
Table 14 – Growth in the number of mobile internet subscribers by operator (million) – 2012 – 2023
Table 15 – Growth in the number of active mobile broadband subscribers – 2012 – 2027
Table 16 – Change in the number of MTN Nigeria’s mobile sites by technology – 2016 – 2023
Table 17 – Change in the number of MTN Nigeria’s mobile subscribers – 2012 – 2023
Table 18 – Change in MTN Nigeria’s financial data (ZAR million) – 2012 – 2023
Table 19 – Development of MTN Nigeria revenue by type (ZAR million) – 2012 – 2023
Table 20 – Development of MTN Nigeria’s financial data (NGN billion) – 2017 – 2023
Table 21 – Change in MTN Nigeria’s mobile ARPU – 2012 – 2023
Table 22 – Change in MTN Nigeria’s capex – 2015 – 2023
Table 23 – Change in MTN Nigeria’s customer voice and data traffic – 2015 – 2023
Table 24 – Growth in the number of Airtel Nigeria’s mobile subscribers (company data) – 2021 – 2023
Table 25 – Growth in the number of Airtel Nigeria’s mobile subscribers (regulator data) – 2012 – 2023
Table 26 – Growth in the number of Airtel Nigeria’s base stations – 2018 – 2023
Table 27 – Development of Airtel Nigeria’s financial data ($ million) – 2018 – 2024
Table 28 – Development of Airtel Nigeria’s revenue by type ($ million) – 2021 – 2024
Table 29 – Change in Airtel Nigeria’s quarterly churn – 2018 – 2023
Table 30 – Growth in the number of Globacom’s mobile and mobile internet subscriber base (million) – 2012 – 2023
Table 31 – Development of Globacom’s financial data (NGN million) – 2017 – 2019
Table 32 – Change in the number of 9mobile’s mobile subscribers (million) – 2012 – 2023
Table 33 – Development of 9mobile’s financial data (NGN million) – 2017 – 2019
Table 34 – Decline in the number of Visafone’s mobile subscribers – 2013 – 2020
Table 35 – Change in the number of m-payment transactions and value – 2012 – 2019
Table 36 – Increase in the number of m-money inter-scheme transactions and value – 2017 – 2020
Table 37 – Growth in the number of MTN’s m-money subscribers – 2018 – 2023
Table 38 – Fixed-line (wired) broadband subscribers – 2017 – 2023
Table 39 – Fixed-line (wired) broadband subscribers by operator – 2017 – 2023
Table 40 – Change in the market share of fixed-wired broadband subscribers by operator – 2017 – 2023
Table 41 – Increase in fibre broadband cabling – 2018 – 2022
Table 42 – Change in the number of fibre broadband connections – 2018 – 2022
Table 43 – Evolution in the number of satellite broadband subscribers – 2015 – 2024
Table 44 – Evolution of fixed lines in service and teledensity – 2012 – 2027
Table 45 – Change in the number of fixed lines by operator – 2014 – 2023
Table 46 – Growth in the number of VoIP lines by operator – 2016 – 2023
Table 47 – Increase in international internet bandwidth in Nigeria – 2012 – 2021
Table 48 – Historic - Fixed lines in service and teledensity – 1999 – 2011
Table 49 – Historic - Mobile subscribers and penetration rate – 1998 – 2011
Table 50 – Historic - MTN Nigeria ARPU – 2002 – 2011
Table 51 – Historic - Internet users and penetration rate in Nigeria – 2000 – 2015
Table 52 – Historic - SMS traffic – 2006 – 2011
Table 53 – Historic - International internet bandwidth – 2001 – 2011
Table 54 – Historic - CDMA subscribers by operator – 2011 – 2019

List of Charts

Chart 1 – Africa Telecoms Maturity Index – Market Leaders
Chart 2 – Africa – Market Leaders global ranking
Chart 3 – Africa Telecoms Maturity Index – Market Challengers
Chart 4 – Africa – Market Challengers global ranking
Chart 5 – Africa Telecoms Maturity Index – Market Emergents
Chart 6 – Africa – Market Emergents global ranking
Chart 7 – Africa – Telecoms Maturity Index vs GDP per capita
Chart 8 – Africa – Mobile subscriber penetration vs mobile broadband penetration
Chart 9 – Africa – Fixed and mobile broadband penetration
Chart 10 – Development of telecom revenue by sector – 2017 – 2022
Chart 11 – Change in telecom sector contribution to GDP – 2012 – 2023
Chart 12 – Change in the number of outgoing mobile number portings – 2013 – 2023
Chart 13 – Development of mobile sector financial data – 2017 – 2022
Chart 14 – Growth in the number of active mobile subscribers and penetration – 2012 – 2027
Chart 15 – Change in the number of mobile subscribers – 2014 – 2023
Chart 16 – Change in the market share of mobile subscribers by operator – 2012 – 2023
Chart 17 – Change in the number of prepaid mobile subscribers – 2012 – 2022
Chart 18 – Growth in SMS traffic – 2012 – 2022
Chart 19 – Growth in the number of mobile internet subscribers by operator – 2012 – 2023
Chart 20 – Growth in the number of active mobile broadband subscribers – 2012 – 2027
Chart 21 – Change in the number of MTN Nigeria’s mobile sites by technology – 2016 – 2023
Chart 22 – Change in the number of MTN Nigeria’s mobile subscribers – 2012 – 2023
Chart 23 – Change in MTN Nigeria’s financial data – 2012 – 2023
Chart 24 – Change in MTN Nigeria’s voice and data revenue – 2012 – 2023
Chart 25 – Development of MTN Nigeria’s financial data – 2017 – 2023
Chart 26 – Change in MTN Nigeria’s mobile ARPU – 2012 – 2023
Chart 27 – Change in MTN Nigeria’s capex – 2015 – 2023
Chart 28 – Change in MTN Nigeria’s customer voice and data traffic – 2015 – 2023
Chart 29 – Growth in the number of Airtel Nigeria’s mobile subscribers – 2012 – 2023
Chart 30 – Growth in the number of Airtel Nigeria’s base stations – 2018 – 2023
Chart 31 – Development of Airtel Nigeria’s financial data – 2018 – 2024
Chart 32 – Development of Airtel Nigeria’s revenue by type ($ million) – 2021 – 2024
Chart 33 – Growth in the number of Globacom’s mobile and mobile internet subscriber base – 2012 – 2023
Chart 34 – Change in the number of 9mobile’s mobile subscribers – 2012 – 2023
Chart 35 – Change in the number of m-payment transactions and value – 2012 – 2019
Chart 36 – Increase in the number of m-money inter-scheme transactions and value – 2017 – 2020
Chart 37 – Total fixed-line (wired) broadband subscribers – 2017 – 2023
Chart 38 – Fixed-line (wired) broadband subscribers by operator – 2017 – 2023
Chart 39 – Change in the market share of fixed-wired broadband subscribers by operator – 2017 – 2023
Chart 40 – Evolution of fixed lines in service and teledensity – 2012 – 2027
Chart 41 – Change in the number of fixed lines by operator – 2014 – 2023
Chart 42 – Growth in the number of VoIP lines by operator – 2016 – 2023
Chart 43 – Increase in international internet bandwidth in Nigeria – 2012 – 2021

List of Exhibits

Exhibit 1 – Map of Telecom Maturity Index global ranking among countries in Africa
Exhibit 2 – Generalised Market Characteristics by Market Segment
Exhibit 3 – Africa – Market Leaders and market developments
Exhibit 4 – Africa – Market Challengers and market developments
Exhibit 5 – Africa – Market Emergents and market developments
Exhibit 6 – Regional FWA licensees
Exhibit 7 – Financial bids for Nitel/M-Tel, first and second round ($ million) – 2010
Exhibit 8 – MVNO licensees by type - 2023
Exhibit 9 – Regional FWA licensees in Nigeria
Exhibit 10 – 2Africa landing stations

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Nigeria Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Purchase this Report

Nigeria’s telcos struggle with poor investment climate

Key developments:

Companies mentioned in this report:

Key statistics

Regional Africa Market Comparison

Country overview

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Fixed network operators

Telecommunications infrastructure

Appendix – Historic data

Glossary of abbreviations

Related reports

Purchase this Report

Share this Report

TMT Intelligence

A platform to scale your intelligence tasks

Research Methodology

Hot Topics

News & Views