Spotlight on Nigeria
Delivering a digital future
The role of mobile technology
in building Nigeria’s digital
economy
Growth in the adoption of digital services by government, businesses, and consumers is having a positive impact
on daily life in Nigeria. Mobile technology is playing an increasingly central role in the country’s economy and, for
the majority of Nigerians, mobile broadband is the first and only technology for accessing the internet, opening the
door to a whole new world.
NIGERIA MOBILE LANDSCAPE AT A GLANCE SEPTEMBER 2018
UNIQUE MOBILE MOBILE TOTAL SMARTPHONE
SUBSCRIBERS PENETRATION CONNECTIONS ADOPTION
97.5M, 49%, 151M, 53M
RISING TO 130M RISING RISING TO RISING
SMARTPHONE
CONNECTIONS,
BY 2025 TO 55% 210M BY 2025 TO 144M
BY 2025 BY 2025
Around half of unique Compared to fixed- Of which 3.2m are Smartphone adoption
subscribers also use line penetration of less cellular IoT connections rate of 36%
mobile internet services than 1%
…but the country lags regional peers in 4G
More Nigerians are getting adoption. Helping accelerate adoption would
access to mobile broadband… set the stage for more advanced services and a
bigger positive societal impact.
2025 8% 5%
2G
3G
70%
60%
4G
4%
50%
17% 5G
40%
2018 52% 30%
44% 20%
70%
10%
0%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Nigeria Angola Kenya South Africa
GSMA Intelligence GSMA Intelligence
Competitive landscape
4G only 4G only
2G, 3G & 4G
FWA
2G, 3G & 4G
2G, 3G & 4G
4G only
FWA
2G, 3G & 4G FWA Broadband Wholesaler
• The total amount of spectrum assigned to mobile in Nigeria is 470 MHz
• This is far in excess of the Sub-Saharan African average of 268 MHz
• Some inefficiencies may exist in the utilisation of spectrum, as around a quarter of the spectrum assigned to
mobile is being used by a few service providers that jointly account for less than 2% of the mobile market
• This includes 50 MHz of valuable sub-1GHz spectrum, which is vital for creating good nationwide mobile
broadband coverage
MOBILE CONTRIBUTION TO Mobile technology is having a direct and positive impact on
SOCIAL DEVELOPMENT AND the daily lives of Nigerians, by fostering inclusive growth and
ECONOMIC GROWTH enhancing the productivity and efficiency of the economy.
ECONOMIC IMPACT OF THE MOBILE ECOSYSTEM, FY 2017
$1.8B
Nearly
$21B 500,000 direct and indirect jobs Total tax contribution of
the mobile ecosystem,
Total value added the equivalent to 16% of
mobile ecosystem to GDP, government tax revenue
representing 5.5% of GDP
GSMA Intelligence
MOBILE AS Mobile connects more Nigerians to the internet than any other
A PLATFORM technology, and has become the primary platform for creating,
FOR DIGITAL distributing and consuming digital content and services across
INNOVATION multiple sectors.
Policies underpinning digital transformation
As evident in the transforming impact of the mobile sector in Nigeria, mobile changes the way in which we live and
interact with the world around us: with access driven by competitive markets, sufficient spectrum and modernised
regulation. The challenge for both government and the mobile sector is to ensure that as many as possible continue
to benefit from mobile connectivity, enabling digital lifestyles and facilitating economic development. Without this,
citizens will be let down, and productivity and competitiveness will suffer.
The next generation of mobile technology offers huge potential ushering in an era of lightning-fast mobile
connectivity and new digital possibilities. It is important, therefore, that Nigeria takes full advantage, fostering
inclusive growth and enhancing the productivity and efficiency of the economy.
Looking ahead: critical steps to accelerate digital transformation
With spectrum allocation and licensing crucial in the delivery of Nigeria’s digital future, the GSMA has identified
support for and release of harmonised spectrum, and a modernised licensing framework as fundamental building
blocks for future growth.
Spectrum
1. The harmonisation of 1427-1518 MHz and 3.3–3.6 GHz makes them critically important bands for mobile
operators seeking to offer the power of new mobile services to consumers and businesses. Making these
bands available for assignment to mobile operators will be a core component in reinforcing Nigeria’s
position as Africa’s leading mobile market.
2. With active participation in the ITU WRC process, Nigeria is hugely influential. With a year still to go until
WRC-19, leading the region in support of identifying new IMT bands that 5G will benefit from, especially
on 26GHz, will be crucial.
Licensing
3. A future-fit licensing regime will promote market growth and development.
Streamlined licensing frameworks and future-fit licence conditions boost investor confidence and
enable increased connectivity. Changes in the market and technologies have resulted in an unfit licence
framework and redundant licensing conditions, which could act as an impediment to future growth.
Growth in demand for digital services also requires adherence to a flexible service authorisation regime to
allow for adaptability in licensees’ business models. Given the NCC’s historic reputation as an innovative
agency in its approach to regulating and licensing, the GSMA recommends the following reforms:
• Retire the Digital Mobile Licence, the National • Transition to an indefinite duration for the UASL;
Carrier Licence and the International Gateway
• Guarantee a true unified approach to licensing,
Licence;
permitting licensees to offer the full range of
• Eliminate superseded conditions in the Unified services, as per the UASL scope of services
Access Service Licence (UASL) and migrate provision;
many others towards a supplementary general
• Provide coverage obligations via radio
UASL conditions document or to parallel
frequency licences.
regulations;
GSMA HEAD OFFICE
Floor 2, The Walbrook Building, 25 Walbrook,
London, EC4N 8AF, United Kingdom
Tel: +44 (0)20 7356 0600
www.gsma.com
4
©GSMA 2018
