Experts have projected a positive trajectory for Nigeria’s Information and Communication Technology (ICT) sector in 2024, fueled by increased investments from telecom players aiming to enhance network coverage, technology infrastructure, and overall service quality.
The ongoing commitment of telecom companies to strengthen their foothold in the ICT landscape is expected to drive innovation and technological advancements and contribute to the sector’s robust growth.
Despite a real-term expansion of 6.69% (year-on-year) in the third quarter (Q3) of 2023, marking the lowest in five years according to Nigeria’s GDP report, analysts at Cardinal Stone Research remain optimistic about the sector’s growth this year.
The slowdown is attributed to lower capital expenditure (CAPEX) intensity by major telecommunications players and the impact of rising inflation on consumer spending capacity, potentially leading to weaker trade sector growth.
The report, titled “Sailing Through Troubled Water,” emphasises the positive outlook, anticipating accretive benefits from higher subscribers as the demand for data and voice services continues to rise.
Major telecommunication operators, including MTN, Airtel, and Globacom, witnessed significant increases in internet subscribers from January to August 2023. However, 9mobile experienced a decline of 451,000 subscribers during the same period, as per data from the Nigeria Communication Commission (NCC).
The report also highlights the positive impact of the growing e-commerce market, valued at $6.8 billion in 2022 with an average growth rate of 11.0 percent over the last three years. The expanding e-commerce segment is seen as beneficial for the trade sector and Fast-Moving Consumer Goods (FMCG) sales.
“We see legroom for additional gains from the growing e-commerce sector, aided by technological advancement, widespread internet accessibility, and a young, tech-savvy population,” states the report, reinforcing the belief in the telecom sector’s potential for continued growth and positive contributions to Nigeria’s economic landscape in 2024.
