Nigeria’s telecommunications sector eliminated 383 jobs within a year as operators struggled with rapidly increasing operational expenses, according to the latest Year-End Performance Reports (2023 & 2024) from the Nigerian Communications Commission (NCC).
The reports show a reduction in total industry employment from 17,882 workers in 2023 to 17,499 workers in 2024, with layoffs concentrated among GSM companies, internet service providers (ISPs), and value-added services (VAS) firms.
Operating Expenses Rise by 85.35% in One Year
Telecom operators faced a dramatic rise in operational spending, which jumped from N3.16 trillion in 2023 to N5.85 trillion in 2024.
The NCC attributes the surge in operating costs to:
- Increasing energy prices
- High inflation levels
- Volatile foreign exchange rates
- Multiple taxes and levies from state and local authorities
- Ongoing Right-of-Way (RoW) charges despite waivers in select states
The Commission noted that operators repeatedly cited the tough economic climate as a major challenge, affecting both day-to-day operations and long-term investments.
GSM, ISP & VAS Firms Lead Job Losses
The most significant job cuts occurred in the following subsectors:
- GSM operators: 7,212 → 6,658
- ISPs: 5,589 → 5,473
- VAS companies: 813 → 713
- Fixed-line operators: 268 → 272 (small increase)
Two segments experienced workforce growth:
- Collocation & Infrastructure Sharing: 1,574 → 1,751
- Others: 2,426 → 2,632
However, these increases did not outweigh the broader job losses across the sector.
NIN-SIM Policy Triggers Sharp Subscriber Decline
The layoffs came amid significant subscriber losses driven by the strict implementation of the NIN-SIM linkage directive.
Key metrics:
- Active voice subscriptions: 224.7 million → 164.9 million (26.61% decline)
- Teledensity: 103.66% → 76.08%
According to the NCC, the decline was caused by:
- Deactivation of SIMs without verified NINs
- Correction of a major reporting error by a mobile operator
- Updated population estimates from the National Population Commission
CAPEX Jumps Despite Subscriber Drop
Even with shrinking customer numbers, operators dramatically increased their capital spending:
- CAPEX: N990.55 billion → N2.90 trillion
The rise in CAPEX was attributed to:
- Higher prices of imported network equipment due to FX volatility
- Intensified investment in network expansion and modernisation
Infrastructure upgrades in 2024 included:
- Towers: 39,356 → 39,880
- Base stations: 137,992 → 145,141
- Additional fibre deployments nationwide
Revenue Climbs but High Costs Remain a Burden
Industry revenue rose significantly, increasing from N5.30 trillion in 2023 to N7.67 trillion in 2024, representing a 44.70% growth.
Despite this, operators report that escalating costs, especially diesel, electricity, forex, and taxes, continue to squeeze margins and delay expansion plans.
Telecom Sector Boosts GDP Contribution
The telecommunications sector contributed 14.40% to Nigeria’s GDP in Q4 2024, up slightly from 14% in Q4 2023.
The NCC anticipates that the upcoming GDP rebasing will more accurately capture the value generated by Nigeria’s growing digital economy.
