Telecommunications operators in Nigeria achieved a milestone in 2023, recording a revenue of N5.3 trillion from various service offerings. This revelation came through the Nigerian Communications Commission’s (NCC) 2023 year-end performance report titled ‘2023 Subscriber/Network Performance Report,’ released yesterday.
Breaking down the figures, the report highlighted earnings across multiple segments: GSM operators led with N4 trillion; fixed wired services generated N273 billion; Internet Service Providers (ISPs) accounted for N89.8 billion; Value Added Service Providers (VAS) brought in N14.6 billion; collocation and infrastructure sharing players contributed N1.14 trillion, while other operators earned N41.8 billion.
The report also revealed a significant increase in active subscriptions, which grew from 222.57 million in 2022 to 224.71 million by December 2023, marking an addition of 2.14 million subscribers and a 0.96 per cent year-on-year growth. Subscriber data consumption surpassed 713 terabytes during the same period.
Notably, the telecom sector’s contribution to Nigeria’s GDP rose to 14 per cent in 2023, up from 13.55 per cent in 2022. The industry also recorded advancements in financial segments, with domestic capital expenditure (CAPEX) peaking at N990.55 billion. Operating costs among telecom operators stood at N3.16 trillion.
However, the report highlighted a decline in foreign direct investment (FDI) into the sector, which fell to $134.75 million in 2023, compared to $399.91 million in 2022, based on figures from the Central Bank of Nigeria.
The telecom market’s steady growth underlines its critical role in Nigeria’s economic development, driven by robust investments, increased subscriber base, and a growing demand for data services. The NCC’s report not only celebrates the industry’s achievements but also underscores areas for potential growth and further investments in the coming years.
