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Data Boom Fueled Nigeria’s Telecom Spending To a Record  ₦5.3tr In 2023

Nigeria’s telecom spending surged to a record ₦5.3 trillion in 2023, a 37.54% increase from ₦3.86 trillion in 2022, according to the NCC‘s Subscriber/Network Performance Report. The growth was driven by a 37.58% rise in data consumption, with usage jumping from 518,381.78TB in 2022 to 713,200.62TB in 2023. 

Despite the data boom, voice calls saw only a slight increase, with outgoing minutes rising by just 0.59% year-on-year. 

“The total volume of data consumed by subscribers increased to 713,200.62TB as of December 2023 from 518,381.78TB as of December 2022. This represents an increase of 37.58 percent in data consumption within the period. The increased data consumption is indicative of the increasing appetite and use for data by consumers,” the NCC said.

This increase in data consumption coincides with only a margin increase in voice calls, with total outgoing calls hitting 205.29 billion minutes, a 0.59 percent increase from the 204.09 billion minutes recorded in 2022.

The total number of active subscriptions increased from 222.57 million in 2022 to 224.71 million, attributed to subscriber loyalty, promos, aggressive consumer acquisition drive, and competitive product offerings across all the networks.

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Internet subscribers increased from 154.85 million in 2022 to 163.84 million in 2023, and broadband penetration declined from 47.36 percent to 43.71 percent. This growth in internet consumption has continued into 2024, thanks to increased streaming services and smartphone penetration.

The chief executive officer of MTN Nigeria, Karl Toriola, recently noted that telecom companies are set to benefit from increased demand for data services, which has become the primary driver of telecom revenue.

Between January and September 2024, MTN Nigeria and Airtel Nigeria reported combined data revenues of N1.63 trillion, up from N254.32 billion in the same period of 2019. Over this time, voice revenues—once the primary income source for telcos—grew by only 70.74 percent to N1.44 trillion.

Data usage per user has grown, with MTN Nigeria reporting that its average data usage per user rose to 11.3GB in September 2024 from 7.8GB in March 2023. For Airtel Nigeria, monthly usage increased from 2.8GB in March 2021 to 8.1GB in September 2024.

“We are positioning ourselves to capture the opportunities of growth for the next 10 years. The demand for data in Nigeria is exceptional and will continue to grow,” Toriola stated.

Credit: Businessday

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