February 28, 2025/CSL Research
According to data from the National Bureau of Statistics (NBS), the growth rate of Nigeria’s Information and Communications Technology (ICT) sector slowed to 5.42% in 2024, down from 7.91% in 2023. On a quarter-on-quarter basis, the sector’s growth slightly declined to 5.90% in Q4 2024, compared to 5.92% in Q3 2023.
Despite this slowdown, the ICT sector still contributed 17.68% to the country’s GDP in 2024, a slight increase from the 17.34% recorded in the previous year. On a quarter-on-quarter basis, the sector’s contribution in Q4 2024 rose to 17.00%, up from 16.35% in Q3 2024. The ICT sector includes telecommunications, information services, publishing, motion pictures, sound recording, music production, and broadcasting.
The year-on-year decline in the sector’s growth was largely driven by a sharp slowdown in the telecommunications subsector, where growth fell to 6.25% in real terms, significantly lower than the 7.91% recorded in 2023. Broadcasting also saw a notable decline, with its growth rate dropping to 2.11% from 4.66% the previous year. The telecommunications sector, in particular, has been heavily impacted by the broader economic challenges facing the country, as reflected in declining industry figures. The Nigerian Communications Commission (NCC) reported that active mobile subscriptions dropped by 59.79 million, or 26.61%, decreasing to 164.93 million in 2024 from 224.71 million in 2023. Teledensity, which measures active telephone connections per 1,000 people, also decreased to 76.08% in 2024, down from 103.66% in 2023.
In 2024, telecom operators in Nigeria grappled with escalating operational costs, exacerbated by the devaluation and scarcity of foreign exchange, which placed significant pressure on profitability. Rising energy prices, inflationary pressures, and a volatile foreign exchange environment significantly strained margins. Looking ahead to 2025, the outlook for Nigeria’s telecommunications sector remains highly optimistic. This positive sentiment is driven by factors such as a recovery in mobile subscriptions, tariff adjustments, the expansion of 4G and 5G networks, growing broadband penetration, and the ongoing transition from analog to digital services.
Click here to download full report: CSL Nigeria Daily – 28 February 2025 – GDP .pdf
