Nigeria’s telecommunications sector has undergone a remarkable transformation since the liberalisation of 2001, growing from fewer than 500,000 active lines under state-owned NITEL to more than 169 million subscribers in 2024.
The sector has attracted an estimated $75.6 billion in investment over the past 24 years, positioning it as one of the largest telecom markets in Africa and a significant contributor to the national economy.
According to the Nigerian Communications Commission (NCC), investments have supported advancements from 2G to 5G networks, expansion of Internet Service Providers, and the rise of infrastructure companies such as IHS Towers.
The sector’s contribution to gross domestic product (GDP) reached 14.4 percent in 2024, reflecting its growing importance as a driver of digital services and economic inclusion.
The introduction of GSM licenses in 2001 marked a turning point with operators like MTN, Airtel, and Glo leading aggressive rollouts that changed Nigeria’s communications landscape.
Industry experts note that projections at the time envisioned subscriber growth of only 10 to 15 million, a figure now vastly surpassed. Submarine cable projects and local innovations have further strengthened connectivity, underpinning the development of Nigeria’s digital economy.
Despite this progress, the NCC estimates that about 27 million Nigerians still live in areas without access to telecommunications services.
Coverage gaps, poor service quality, and rising costs continue to frustrate consumers, limiting the sector’s ability to fully deliver on its potential.
Telecoms’ role as an economic enabler has been highlighted across multiple industries. In the financial sector, banks credit telecom infrastructure with advancing mobile banking, USSD platforms, and digital wallets, supporting financial inclusion and enabling instant access to capital markets.
In aviation, telecom systems facilitate real-time data transfer from modern aircraft and underpin the logistics that drive e-commerce and agricultural exports.
On the Nigerian Exchange (NGX), telecom operators rank among the largest listed companies, strengthening overall market depth and investability.
Tourism, education, and security have also benefited from telecom infrastructure. Digital platforms help promote destinations and broaden participation in rural communities.
E-learning initiatives and remote classrooms depend heavily on connectivity, while modern surveillance and security solutions rely on robust networks rather than manpower alone.
Analysts caution, however, that the sector must address service quality and affordability if it is to sustain growth. As the global telecom industry shifts from voice and data revenues to digital services, Nigeria’s operators are under pressure to invest further in infrastructure and innovation.
Jide Awe, a technology analyst, observed that while connectivity once dominated revenues, digital platforms now drive growth worldwide, a shift Nigeria must embrace to remain competitive.
The sector’s next phase will demand greater collaboration between regulators, operators, and government agencies to close existing access gaps and reduce costs.
Industry stakeholders also stress the need for policies that encourage infrastructure sharing, local manufacturing of telecom equipment, and broader adoption of digital services across rural communities.
Nigeria’s telecoms journey from scarcity to abundance has set a benchmark for transformation on the continent. Yet with millions still unconnected and service gaps persisting, the industry faces new challenges that will determine its capacity to sustain growth and continue powering Africa’s largest economy.