The Nigerian Communications Commission (NCC) has engaged PricewaterhouseCoopers (PwC) to carry out a comprehensive review of competition in Nigeria’s telecommunications industry, as concerns grow over market dominance and the sustainability of fair competition.
This was disclosed at a stakeholders’ forum on the Study of Competition in the Nigerian Telecommunications Industry held in Lagos on Tuesday.
The initiative comes as the telecom sector continues to play a critical role in Nigeria’s digital economy, contributing 9.1% to GDP as of Q3 2025.
The Commission said the study is designed to validate existing competition policies against current market realities, following significant structural and technological changes across the industry.
What they are saying
Speaking at the forum, Head of Tariff, Policy, Competition and Economic Analysis Department at the NCC, Mrs. Omotayo Mohammed, said the exercise had become necessary given the rapid evolution of the telecoms market.
- She noted that shifts in revenue models, investment patterns, and market interactions have fundamentally altered how competition plays out in the sector.
- According to her, rapid technological advancement, changing consumer behaviour, rising investment costs, and increasing competitive pressure have heightened concerns around market concentration, barriers to entry, and the long-term sustainability of smaller operators.
“To support evidence-based decision-making, the Commission has engaged PricewaterhouseCoopers to conduct an independent, data-driven study on the level of competition in the Nigerian telecoms industry.
“The engagement reflects the Commission’s emphasis on methodological rigour, analytical independence, and alignment with international best practice in competition and economic analysis,” she said.
Mohammed explained that the last comprehensive, industry-wide competition study conducted by the Commission was concluded in 2013, while more recent reviews had been limited to specific services and market segments.
Developments in technology, market structure, and consumer behaviour, she said, now require a holistic reassessment of competition across the entire telecommunications value chain.
She stressed that the ongoing study is diagnostic and evidence-based, adding that it is not intended to pre-judge outcomes or single out any operator.
More insights from PwC
Also speaking at the forum, Director, Strategy at PwC Network, Akolawole Odunlami, described the study as timely, given the slowing growth and structural shifts in the global telecommunications industry.
- He said the global telecoms market is projected to reach about $1.3 trillion by 2028, but annual growth has slowed to between 2% and 3%, compared with around 4% year-on-year growth before the COVID-19 pandemic.
- Odunlami noted that while subscriber numbers in sub-Saharan Africa continue to rise, many operators are facing declining average revenue per user (ARPU), intensifying competition and placing pressure on traditional business models.
- He explained that consumer behaviour has also evolved, with users becoming increasingly digital-first and seeking connectivity-enabled experiences rather than just voice or data services.
“Today’s consumers are not just buying data; they are looking for digital experiences such as entertainment, financial services, self-service applications and social connectivity, with data serving as the backbone,” he said.
Shifting business models
Odunlami added that globally, telecom operators are rethinking their business models by integrating lifestyle services such as utilities, healthcare, and fintech into their platforms, while Over-The-Top (OTT) services like WhatsApp and Microsoft Teams continue to erode traditional voice and messaging revenues.
He noted that emerging technologies, including 5G and future 6G networks, will further reshape competitive dynamics.
- However, adoption in Nigeria and sub-Saharan Africa remains constrained by infrastructure gaps, low investment in research and development, and slow uptake of 5G-enabled devices.
- According to PwC, short- to medium-term 5G adoption in sub-Saharan Africa is projected at between 14% and 17%, significantly below global averages, underscoring the need for stronger policy support and investment.
What you should know
The competition study comes at a time when the telecom market is welcoming new players known as Mobile Virtual Network Operators (MVNOs).
While these recently licensed players are to leverage existing infrastructure of the mobile network operators, stakeholders have expressed concerns that competition in the market may suffocate them.
As of November last year, Nairametrics reported that only one out of the 43 companies licensed as MVNOs two years ago has been able to launch commercial operations.
