At the 2024 TeXcellence conference, Karl Toriola, CEO of MTN Nigeria, highlighted the telecommunications sector’s crucial impact on Nigeria’s economy, revealing that MTN alone contributes approximately 7% to the nation’s Gross Domestic Product (GDP).
This figure is a significant part of the broader telecom sector, which accounts for 14% of Nigeria’s GDP, showcasing its role as a backbone of the digital economy.
“The telecommunication sector has been a critical driver of economic growth in this country,” Toriola noted. He emphasized that MTN’s evolution into a technology-focused company, or “Techco,” presents new economic prospects and positions the nation for substantial digital transformation.
Experts have echoed the importance of MTN’s role in national productivity. Telecommunications economist Dr. Ifeoma Chukwuma remarked, “A 7% GDP contribution from one operator underscores MTN’s strategic importance and the essential role of telecom infrastructure in enhancing national productivity.
Investments in digital infrastructure by MTN support commerce, education, and healthcare, creating a multiplier effect across the economy.”
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Toriola also discussed changing revenue patterns, observing that data services have overtaken voice services as MTN’s primary income stream.
This shift, driven by an increasing appetite for digital connectivity, has come with challenges such as tighter profit margins, heightened competition, and economic pressures including currency devaluation.
Despite these hurdles, MTN has been advancing projects aimed at bolstering Nigeria’s digital economy. Key initiatives include the construction of West Africa’s largest data center and the expansion of 5G services, designed to offer high-speed, low-latency connectivity.
These projects align with global trends toward the Internet of Things (IoT), artificial intelligence (AI), and comprehensive digital ecosystems, which are viewed as vital for economic stability and resilience.
A pressing concern Toriola addressed was internet affordability, noting that 71% of Nigerians still face difficulties maintaining consistent access due to high costs.
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Industry analyst David Adepoju stressed the importance of collective action: “To maximize the benefits of a growing digital economy, we must prioritize affordability and accessibility. Collaboration between the government and telecom operators is crucial for lowering costs and broadening access.”
In closing, Toriola called for stronger partnerships involving industry leaders, international partners, and government bodies to fully unlock Nigeria’s potential and cultivate an innovative digital economy.
“Our biggest asset is our people—their drive and ingenuity. By investing in digital infrastructure and nurturing this talent, we can achieve the vision of a trillion-dollar economy,” he asserted.
MTN’s leadership is evident in its market share, with 78 million active subscriptions as of September 2024, representing over 50% of the market, according to the Nigerian Communications Commission (NCC).
Airtel Nigeria follows with 53.7 million subscribers (34.76% market share), while Globacom and 9mobile hold shares of 12.39% and 2.35%, respectively.