The Nigerian telecommunications industry faces revenue challenges due to declining average revenue per user, while subscriber numbers continue to rise.
Current Situation Overview
According to a PwC report, the Nigerian telecom industry is projected to see a 1.4% decline in average revenue per user (ARPU) by 2028. In Q3 2024, the ARPU dropped by 40.87% to $1.85, attributed to the naira's devaluation affecting purchasing power.
Subscriber Growth
Despite revenue challenges, subscriber numbers are rising across Nigerian markets. PwC forecasts an annual subscriber growth rate of 9.8% from 2023 to 2028. As of January 2025, active subscriptions stood at 169.3 million, a 2.66% increase from December 2024.
Outlook and Challenges in African Telecommunications
The telecom revenue in Africa is forecasted to grow substantially. As mobile internet usage continues to expand, telecom operators can expect increased data revenue, particularly amid rising demand for digital services and infrastructure improvements.
While facing economic challenges, the Nigerian telecom industry shows potential for growth in subscriber numbers, supported by infrastructure investment and digital service expansion.
