Telecom
How Telecoms Sector, Others Take Nigeria out of Recession
The Nigeria’s telecommunications sector’s contributions in the economy has been attributed as the major driver that lifted the country out of recession in the fourth quarter of 2020, contributing 12.45 percent to the country’s Gross Domestic Product (GDP).
Dr. Ikechukwu Adinde, director, Public Affairs, Nigerian Communications Commission (NCC), disclosed this in a statement released on Monday, in Abuja.
Dr. Adinde said that the sector which is being regulated by the Commission is one of the sectors whose performance lifted the country out of recession in the fourth quarter of 2020, contributing 12.45 percent to the country’s Gross Domestic Product (GDP).
He noted that the latest data released by the National Bureau of Statistics (NBS), telecommunications & Information Services under Information and Communication grew by 17.64 per cent in Q4 2020 from 17.36 per cent in Q3 2020 and 10.26 per cent in Q4 2019.
“In the latest NBS report, agriculture, industries, and services sector, under which telecommunications is categorised, contributed 26.95 per cent, 18.77 per cent, and 54.28 per cent respectively.
“This is a pointer to the fact that telecommunications, trade, services and crop production are the main drivers of Nigeria’s exit from recession.
“In specific terms, NBS report showed that largest sub-sectors in Q4 2020 are crop production at 3.68 per cent, crude petroleum and natural gas at 8.2 percent, trade at 14.9 per cent, telecommunications & information services at 12.45 per cent, and real estate at 5.7 per cent, the report says.
“The telecommunications sector has, in the last five years been a major driver of the digital economy agenda of the Federal Government, as it has continued to provide the needed digital sinews that support the economy, especially during the COVID-19 pandemic and its attendant restriction period”.
He further noted that since the outbreak of the pandemic, government institutions, businesses and individuals have relied heavily on telecoms services to carry out their daily operations and official routines.
“In response to the increased demand, the Commission put a number of regulatory measures in place to ensure seamless access by Nigerians to telecommunication services and protect against any adverse impact on the quality of service enjoyed by consumers.
“The steady growth of the telecoms sector over the years with its pervasive positive impact on all other sectors of the economy in terms of increased automation of processes and digital transformation in service delivery has been remarkable.
“The growth trend since 2015 has reawakened hope that the economic diversification dreams of the country may finally be a reality as the sector continues to energize significant economic activities in the services sector of the economy.
“Through effective regulatory regime emplaced by the Commission, under the leadership of its Executive Vice Chairman (EVC), Prof. Umar Garba Danbatta, telecoms investment grew from about $38 billion in 2015 to over $70 billion currently.
“Also, broadband penetration increased from 6 per cent in 2015 to 45.02 per cent at December, 2020, indicating that 85.9 million Nigerians are now connected on 3G and 4G networks which provide enhanced high-speed Internet that has continued to boost efficiency and increase productivity across the economic spectrum.
“Recent statistics also indicate that between 2015 and December, 2020, active voice subscriptions have increased from 151 million to 204.6 million, with teledensity standing at 107.18 per cent.
“Basic active internet subscriptions grew from 90 million to 154.3 million during the period,” he noted.
Dr. Adinde however reiterated the Commissions is committment to its culture of quality regulation of the telecommunications industry that will ensures a stable and robust sector which drives the digital economy agenda of the Federal Government and ultimately leads in the growth of the country’s GDP.
Nigerian Exchange Group (NGX) hosted its annual Made of Africa (MOA) 2025 Awards on Monday, February 4, 2026. The event, held during the NGX year-end celebrations, brought together regulators, listed companies, and market operators such as MTN, BUA, Dangote, Transcorp, to celebrate achievements in compliance, sustainability, and market performance.
In his opening remarks, Dr. Umaru Kwairanga, the Chairman of Nigerian Exchange Limited, said “Excellence in compliance, sustainability, and several other categories recognises the fact that capital market operators and quoted companies must be standards not only in terms of the size of their operations but also adherence to regulations and best practices of corporate social responsibilities.”
He emphasised that the awards serve as a benchmark for excellence. He noted that the 2025 honourees demonstrated significant improvements in branding, customer service, and operational standards despite a challenging economic environment in Nigeria.
Among the evening’s significant winners was MTN Nigeria, which was honoured for its commitment to corporate transparency. The technology giant received the award for Leadership in Sustainability Reporting, emerging as the winner in a category that included Seplat Energy, BUA Cement, and Transnational Corporation of Nigeria PLC.
The award recognised the brand’s adherence to both national and global reporting standards, reflecting its role in advancing environmental, social, and governance (ESG) practices within the Nigerian corporate space.
Tobe Okigbo, Chief Corporate Services & Sustainability Officer, MTN Nigeria, said “This recognition for Leadership in Sustainability Reporting underscores our commitment to transparency and aligning with global best practices.
“As the capital market moves toward greater accountability, MTN Nigeria remains dedicated to demonstrating resilience and faith in the Nigerian economy through comprehensive and standard-compliant reporting.”
The ceremony saw several other major players in the financial sector secure multiple accolades. Chapel Hill Denham emerged as one of the night’s most successful firms, winning in categories including Fund Manager with the Largest Listed Fund Size and Market Operator with the Highest Value of Foreign Portfolio Investment (FPI) Transactions.
Other notable winners included: Cardinal Stone Securities Limited, named Broker of the Year and Equity Trader of the Year, Dangote Cement was awarded Best Issuer in terms of Fixed Income Listings, BUA Cement PLC was recognised as the Most Compliant Listed Company, and Transnational Corporation of Nigeria (Transcorp) PLC received special recognition for Capital Market Excellence in Equity.
Mr. Jude Chiemeka, the Chief Executive Officer of Nigerian Exchange Limited, congratulated the recipients, noting that the market saw a 51% close in the All-Share Index last year, making it the second-best performing market globally. He urged winners and nominees alike to continue striving for excellence to further the aspiration of a $1 trillion Nigerian economy.
Nigeria’s broadband landscape remains anchored by 4G LTE at 52.95% market share in December 2025, with 2G holding steady at 37.37%, while 5G penetration crawls at just 3.77%, per Nigerian Communications Commission (NCC) data.
4G’s dominance stems from urban smartphone migrations and MTN-Airtel infrastructure expansions, fuelling the digital economy, as 2G persists in rural areas due to feature phone reliance and a stubborn device gap.
5G growth stalls from high smartphone costs amid inflation, telco preference for 4G’s quicker returns over capital-heavy 5G rollouts, and limited mainstream apps beyond elite urban streaming in Lagos and Abuja.
Broadband subscriptions topped 112 million, lifting penetration to 51.97%—up from 42.2% in October 2024—crossing the halfway mark for the first time, though monthly gains of 2-3 million slowed mid-year amid population growth and regional disparities.
The NCC’s 70% target stays elusive, highlighting sustained urban-rural demand but underscoring needs for affordable devices, infrastructure, and use cases to accelerate high-speed access nationwide.
Nigeria’s internet subscriber base surged to 148.2 million by December 2025, achieving 68.3% penetration, even amid 50% tariff hikes and naira depreciation, according to Nigerian Communications Commission (NCC) data.
MTN and Airtel dominated with 86% market share, Airtel adding 1 million subscribers in December alone, while Glo and 9mobile lagged as legacy players.
Data consumption exploded 35% to 13.25 million terabytes yearly, but Nigerians spent ₦20.87 billion daily—totalling ₦7.62 trillion ($5.58 billion)—as gigabyte prices doubled from ₦287 to ₦575.
User frustrations mounted from network failures, thousands of fibre cuts due to construction and vandalism between January and August 2025, and poor service quality despite billions in revenue. 4G LTE held 52.95% share as the workhorse, 2G clung to 37.37% in rural areas, and 5G remained a 3.77% urban luxury limited by device costs and base stations.
The NCC’s 70% broadband target fell short at 51.97%, though the ICT sector boosted Q3 GDP by ₦7.47 trillion and restored telco profits post-2024 losses.
In 2026, attention shifts to quality matching rising costs, with users urged to stay powered amid persistent “spinning wheel” woes.
LG Nigeria Begins Nationwide Search for Oldest Working TV, Rewards Loyalty with AI QNED Upgrade
AfCFTA, AGRA Collaborate to Reduce Non-tariff Barriers to Intra-African Food Trade
African Leaders Highlight Africa’s AI Ambitions
MTN, BUA, Dangote & Other Industry Giants Triumph at NGX Made of Africa Awards
4G Dominates Nigeria’s Broadband as 5G Lags Behind
Firm Detected a Fivefold Surge in QR Code Phishing Attacks in the Second Half of 2025
Nigeria’s 9 Top FinTech Firms Valued at $10.6Bn in January 2026
DG NCC Tasks University Dons on Research Commercialization, IP Management to Build Global Competitive Ecosystems
Firm Detected a Scam Exploiting OpenAI’s Teamwork Features
Kaspersky Launches OT Calculator to Align Cybersecurity Investments with Business Goals
General News2 days agoJumia Targets Break-even in 2026 After Strong Q4 Surge
General News2 days agoNigeria’s Banks Race to Meet CBN Recapitalisation Deadline Amid Verification Push
General News2 days agoBOI, MTN Foundation Unveil N1Bn Fund for Women Entrepreneurs
General News1 day agoUBA Unveils Diaspora Platform to Connect Global Africans with Investment, Wealth Opportunities
E-Financial2 days agoNo VAT on Land, Buildings and Rent Under New Tax Law — Oyedele
E-Financial2 days agoCBN Slams Up to N10m Fine on Banks and Cheque Printers for Security Breaches
E-Financial2 days agoIs Nigeria Borrowing to Survive or to Build?
General News24 hours agoLeo Stan Ekeh Foundation, Zinox Group To Invest 10B on 1000 University Tech Scholarships for Indigent Nigeria Wiz-kids