The Nigerian telecommunications industry is a game-changer, driving connectivity, economic growth, and technological innovation. With millions of subscribers and billions in revenue, it is a vital component of Nigeria’s digital journey.
As of January 2025, there were 169 million phone subscriptions, meaning 78% of the country’s 216 million people are connected, according to data from the Nigerian Communication Commission (NCC). That is a big leap from years past. The industry’s revenue has equally skyrocketed, jumping from ₦2.25 trillion in 2018 to ₦3.86 trillion in 2022. Mobile services, especially GSM, drive most of this cash flow, showing how crucial phones are to daily life.
Internet penetration is a key driver of growth, with 142,161,409 internet subscribers, of which 141,655,587 are mobile internet users. Fixed wired internet accounts for 14,053 subscriptions, while Internet Service Providers (ISPs) and Voice over Internet Protocol (VoIP) contribute 285,702 and 206,067 subscriptions, respectively. The dominance of mobile internet highlights the critical role of mobile networks in bridging Nigeria’s digital divide.
| Metric | Value |
| Total Subscriptions | 169,318,076 |
| Teledensity (%) | 78.10 |
| Total Internet Subscribers | 142,161,409 |
| Mobile Internet (GSM) | 141,655,587 |
| Fixed Wired Internet | 14,053 |
| ISP (Wired/Wireless) | 285,702 |
| VoIP Internet | 206,067 |
| Industry Revenue (2022) | ₦3.86 trillion |
MTN leads Nigeria’s telecom market with 51.7%
The telecom market in Nigeria is dominated by four major mobile network operators (MNOs): MTN Nigeria, Airtel Nigeria, Globacom, and 9mobile. Their subscriber shares as of January 2025 are as follows:
- MTN Nigeria: 87,549,410 subscribers (51.79%)
- Airtel Nigeria: 57,665,796 subscribers (34.11%)
- Globacom: 20,545,782 subscribers (12.15%)
- 9mobile: 3,283,270 subscribers (1.94%)
MTN remains the market leader, though it reported a ₦514.9 billion loss after tax for the nine months ending September 2024, partly due to NIN-SIM linkage compliance, which reduced its subscriber base by 0.9%. Airtel is pushing hard to expand its 4G network, Globacom is betting on fibre-optic cables, and 9mobile is upgrading to stay in the game.
The ISP market is heating up too. By March 2024, 177 ISPs served 262,206 subscribers. Spectranet leads with 113,869 users, but Starlink, a satellite internet provider, has surged to 65,564 subscribers by Q3 2024, grabbing the second spot and pushing FiberOne Broadband Ltd to the third position with 27,000. This shows Nigerians are hungry for fast, reliable broadband.
4G network continues to dominate
The industry is transitioning to advanced technologies, with the following market shares by technology type:
- 2G: 41.63%
- 3G: 8.60%
- 4G: 47.23%
- 5G: 2.54%
The dominance of 4G reflects widespread adoption, while 5G, introduced through spectrum auctions in 2021, is gaining traction. MTN and Mafab Communications launched commercial 5G services in major cities, supporting applications in IoT, smart cities, and digital entertainment. The NCC’s spectrum management policies have facilitated this transition, ensuring efficient resource allocation.
Consumer trends and adoption
Consumer demand for data services is surging, driven by smartphone penetration, remote work, online education, and digital entertainment.
According to data from the NCC, Nigerians used over 100 million terabytes in January. With 141 million mobile internet users, it is clear that phones are the easiest and cheapest way to get online. E-commerce, social media, and streaming are fuelling data use, making telecom a lifeline for modern Nigeria.
Telecoms’ contributions to the economy
The telecommunications sector is a significant contributor to Nigeria’s Gross Domestic Product (GDP), with nearly 15% of the nation’s GDP in the 4th quarter of 2025. It is equally supporting industries like e-commerce, fintech, and digital entertainment. It generates direct and indirect employment through network operations, infrastructure development, and supply chains.
The sector’s revenue growth from ₦2.25 trillion in 2018 to ₦3.86 trillion in 2022 underscores its economic importance. Investments in broadband infrastructure and 5G are expected to further drive digital transformation, fostering innovation and entrepreneurship.
Roadblocks to growth
Despite the wins, the industry faces tough challenges. Building infrastructure is pricey, with costs eating up 12–20% of budgets. High right-of-way fees, multiple taxes, and security issues make it hard to expand into rural areas. Unreliable electricity forces companies to use costly diesel generators, jacking up expenses.
Vandalism and theft, especially in the North, damage equipment like base stations and cables. Overlapping rules from agencies like the NCC, FAAN, and NESREA create red tape, slowing things down. Slow and expensive internet also pushes businesses to pricier satellite options like Starlink.
Moving ahead, the future looks bright for the country’s telcos, but it needs work. The National Broadband Plan aims for 70% broadband penetration by the end of 2025, which will need heavy investment in fibre-optic and satellite tech. 5G will grow, powering IoT, smart cities, and industries. AI and automation will make networks smarter and customer service better. But fixing power issues, cutting costs, and streamlining regulations are necessary.
The NCC’s focus on spectrum management, consumer protection and infrastructure sharing, combined with government initiatives like the NAIS, will drive innovation. However, addressing infrastructure costs, cybersecurity, and regulatory inefficiencies is essential to unlocking the sector’s full potential.
The Nigerian telecom industry has proven to be a dynamic and transformative force, connecting millions and powering the digital economy. With 169 million subscriptions, nearly ₦4 trillion in revenue, and a shift toward 4G and 5G technologies, the sector is on a strong growth trajectory. However, challenges like high costs, power instability, and cybersecurity threats require urgent attention.
Through strategic investments, regulatory reforms, and technological innovation, the industry is well-positioned to drive Nigeria’s digital future, fostering economic development and global connectivity.
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