Nigeria’s telecommunications industry reduced 383 jobs between 2023 and 2024 as operators grappled with soaring operating costs, declining subscriber numbers, and persistent regulatory pressures, according to the Year-End Performance Reports recently released by the Nigerian Communications Commission (NCC).
The total workforce across licensed telecom operators fell from 17,882 in 2023 to 17,499 in 2024, highlighting widespread downsizing across major segments of the industry. Analysts say this reflects the challenging environment faced by operators, who must manage multiple taxes, inflation, foreign exchange instability, and high energy costs.
The NCC report revealed that total operating expenses surged by 85.35 per cent, rising from N3.16 trillion in 2023 to N5.85 trillion in 2024. Licensees cited high Right of Way (RoW) fees, steep electricity tariffs, rising diesel costs, and an unfavourable microeconomic environment as major contributors to the surge in expenses.
Among the different market segments, GSM operators were hit hardest, reducing staff strength from 7,212 to 6,658. Internet Service Providers (ISPs) also downsized slightly, trimming their workforce from 5,589 to 5,473, while Value-Added Service (VAS) operators cut 100 jobs, lowering their staff from 813 to 713. Fixed-line operators were the exception, seeing a minor workforce increase from 268 to 272 employees.
Two segments recorded notable gains: Collocation and infrastructure-sharing providers expanded from 1,574 workers to 1,751, while the “Others” category rose from 2,426 to 2,632. However, these increases were insufficient to offset the broader sector decline.
The job reductions coincided with a sharp drop in active voice subscriptions, largely due to the enforcement of the National Identification Number (NIN)-SIM linkage policy. Active subscriptions fell from 224.7 million in 2023 to 164.9 million in 2024, a decline of 26.61 per cent.
The NCC noted that teledensity, a measure of telecom penetration, also dropped from 103.66 per cent in 2023 to 76.08 per cent in 2024, reflecting the steep decline in subscribers. Teledensity calculations are now based on Nigeria’s projected population of 216 million since September 2023.
Despite the workforce and subscriber challenges, operators significantly increased capital expenditure (CAPEX), investing in network expansion and infrastructure upgrades. CAPEX jumped from N990.55 billion in 2023 to N2.90 trillion in 2024, driven by the high cost of imported network equipment, foreign exchange volatility, and ambitious expansion projects.
Industry revenue also grew from N5.30 trillion in 2023 to N7.67 trillion in 2024, representing a 44.70 per cent increase. Nevertheless, telecom companies warned that rising operational costs, forex scarcity, diesel pricing, and multiple levies continue to erode profit margins and create challenges for long-term financial planning.
The sector’s contribution to Nigeria’s Gross Domestic Product (GDP) improved slightly, accounting for 14.40 per cent in Q3 2024, up from 14 per cent in Q4 2023, demonstrating its importance as a key driver of economic growth.
Economist and ICT researcher, Dr. Ifeoma Nwankwo, said the operating cost surge is unsustainable. “An 85 per cent rise in operating costs in one year is a serious shock to any industry. Until Nigeria addresses its power crisis and forex instability, telecommunications—like other infrastructure-heavy sectors—will continue to face heavy financial pressure,” she said.
Industry insiders emphasised that regulatory reforms, lower RoW fees, and stable electricity tariffs could help stabilise the market and protect jobs, even as operators continue investing in network development and digital expansion.
The NCC report underscores the delicate balance Nigerian telecom operators must maintain between workforce management, investment in technology, and compliance with regulatory policies, amid a challenging macroeconomic environment.
