Nigeria’s mobile network operators (MNOs) saw a sharp rise in total operating expenditure (opex), climbing from N3.16 trillion in 2023 to N5.85 trillion in 2024, representing an 85% year-on-year increase, according to the Nigerian Communications Commission (NCC).

Operating costs cover both direct costs of providing services, such as materials and labor, and indirect costs like rent, utilities, administrative staff salaries, marketing, and insurance.

The 2024 Subscriber/Network Performance Report by NCC’s Policy, Competition, and Economic Analysis Department highlighted that rising Right of Way (RoW) fees, inflation, and challenging microeconomic conditions contributed to the higher opex. The report also noted that some states achieved zero RoW fees in 2024, easing costs for operators.

In addition to operating costs, capital expenditure (capex) for domestic network investments also surged, reaching N2.9 trillion in 2024, up from N1.12 trillion in 2023, marking a 159% increase. The report attributed the rise to currency fluctuations, inflation, and the import of network equipment.

On the revenue side, MNOs generated about N7.67 trillion in 2024, up from N5.3 trillion in 2023, a 44.7% increase. Foreign Direct Investment (FDI) into the telecom sector also grew, reaching $457 million, compared to $134.75 million in 2023.

The telecom sector’s contribution to Nigeria’s GDP increased slightly from 14.0% in Q4 2023 to 14.4% in Q4 2024, reflecting a 2.86% year-on-year growth. The National Bureau of Statistics (NBS) continues to rebase GDP figures to better capture the digital economy’s impact.