Nigeria’s telecommunications industry faced a tough year in 2023, as operating costs for telecom companies skyrocketed by 50.92%, rising from ₦2.09 trillion in 2022 to ₦3.16 trillion.
This sharp increase highlights the mounting challenges of operating in an economy grappling with inflation and currency depreciation.
Yet, amid these financial pressures, the sector demonstrated remarkable resilience. Revenue surged by 37.54% to ₦5.30 trillion, up from ₦3.86 trillion the previous year, driven by an ever-growing demand for voice and data services.
The figures were revealed in the Nigerian Communications Commission’s (NCC) 2023 Year-End Performance Report, which underscores the sector’s balancing act between rising costs and expanding services.
“Capital investment increased, and the industry’s operators are working hard to maintain and improve infrastructure despite economic challenges,” the report stated. Telecom companies poured ₦990.55 billion into capital expenditures in 2023, a 26.06% rise from the ₦785.77 billion recorded in 2022. These investments supported key developments, including the rollout of 5G networks and expanding broadband infrastructure.
The report broke down the sector’s performance, revealing that GSM operators were the backbone of the industry. They accounted for ₦2.52 trillion in operating costs and generated ₦4.01 trillion in revenue. Meanwhile, Internet Service Providers (ISPs) posted operating costs of ₦96.81 billion and revenue of ₦89.81 billion, reflecting the growing reliance on digital connectivity.
Infrastructure development remained a priority, with the number of base stations increasing by 8.4% to 137,992, while on-land fibre optics deployment reached an impressive 83,254.5 kilometers. The total number of towers deployed also grew, hitting 39,356—a testament to sustained efforts to improve nationwide connectivity.
However, not all metrics saw positive growth. Broadband penetration slipped from 47.36% in 2022 to 43.71% in 2023, partly due to adjustments in population data used for calculations. Despite this dip, broadband subscriptions climbed to 94.76 million, putting the sector on track to meet the national broadband penetration target of 70% by 2025.
The numbers tell a story of perseverance. Despite economic headwinds, Nigeria’s telecom industry continues to grow, innovate, and expand access to critical digital infrastructure.
