Market Trends of Nigeria ICT Industry
This section covers the major market trends shaping the Nigeria ICT Market according to our research experts:
Increasing Demand for Digitalization and Scalable IT Infrastructure
- The increasing population, communication services, and rising adoption of IT and telecommunication services have driven the growth of the Nigeria ICT Market. The growth in the market is further supported by regulatory authorities, which play a significant role in adopting a 5G network in the country.
- According to GSMA, smartphone adoption in the country nearly doubled from 44% in 2014 to 64% in the last year. The increasing smartphone adoption will further increase the demand for digitalization.
- With rapid technological advancements, telecom businesses are continually focusing on innovation. Thus, they are upgrading their infrastructure while developing state-of-the-art solutions to serve their customers, including innovation, customer service, infrastructure setup, and human resources. For Instance, Microsoft Corporation partnered with the Nigeria Digital Identification for Development (ID4D) project in capacity development and data protection.
- According to Nigeria's telecom industry, GDP contribution grew last year when compared to data from 2015. Such increasing GDP contribution in the telecom sector will further increase demand for the ICT market.
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IT and Telecom Shows Significant Growth
- The IT and telecom sector is significantly growing due to the high rate of various technological adoptions. The economy, government, and huge portions of the country aim to speed up digitalization by investing in digital infrastructures, devices, software, and services. Furthermore, digital services have benefited users significantly, and new business opportunities have developed.
- The increasing demand for high-speed connectivity services and investments in the deployment of 5G infrastructure positively influence the growth of the Nigeria ICT market. For instance, MTN Nigeria collaborated with Huawei to construct more than 100 5G base stations. The commercial 5G rollout aims to provide customers with high-speed services.
- Government officials collaborate with commercial IT and telecom service providers to boost fiber-based broadband services. For instance, Under the National Communications Backbone (NCB) project, the Nigerian Communications Commission (NCC) intends to construct broadband infrastructure. The project will be implemented by laying 120,000 kilometers of fiber across the country, boosting internet penetration to 70% by 2025, and linking 60% of communication towers with fiber.
- Fixed broadband penetration will be expected to increase over the next five years, driven by ongoing efforts by the government to expand fixed broadband coverage and services across the country, particularly in rural areas. According to the Ookla Speedtest Global Index, Nigeria ranked 144th with a median fixed broadband download speed of 10.95 Mbps in October last year. Increasing investments in the telecom sectors will create new growth opportunities for the ICT market.
