Nigeria’s Broadband Penetration Reaches 45.61% Despite Decline in Telecom GDP Contribution
Nigeria’s broadband penetration has shown consistent growth, reaching 45.61% as of January 2025, with a total subscription of 98.8 million users. The latest statistics from the Nigerian Communications Commission (NCC) reveal a steady rise in broadband access from January 2024, where penetration stood at 42.53%. This gradual increase has been marked by fluctuations throughout 2024, with monthly upticks and occasional declines, reflecting both positive growth and challenges in expanding broadband access.
In parallel with the rise in broadband penetration, there has been a noticeable decline in the telecom sector’s contribution to Nigeria’s Gross Domestic Product (GDP). The telecoms’ share of GDP fell from 16.36% in Q2 2024 to 13.94% in Q3 2024. Despite broadband growth, the sector’s overall economic impact has diminished, reflecting broader economic pressures and challenges within the industry. For instance, Q3 2024 data from the NCC shows a drop in the sector’s GDP share, following fluctuations throughout 2023.
Notably, broadband subscriptions also saw an increase in tandem with the penetration rates. The number of broadband subscribers grew from 92.1 million in January 2024 to 98.8 million by January 2025. Though there were occasional declines, such as in May and August 2024, the general trend has been upward, with significant gains in the last quarter of 2024, as seen with a rise to 44.43% penetration and 96.3 million subscriptions by December 2024.
Telecom analysts attribute the recent decline in telecoms’ GDP contribution to the increasing costs of delivering telecom services across networks. The sector’s economic performance has been impacted by these rising operational expenses, which led to the Nigerian government approving a 50% increase in telecom tariffs. The price hike aims to offset some of the costs associated with telecom service delivery, but its impact on the sector’s overall growth remains a topic of concern.
source: this day