By 
Nigeria’s telecoms regulator, the Nigerian Communications Commission (NCC), has appointed PricewaterhouseCoopers (PwC) to carry out an independent, data-driven assessment of competition within the country’s telecommunications industry.
The announcement comes more than a decade after the last comprehensive competition study was completed in 2013 and follows the NCC’s approval of a 50% tariff adjustment for mobile network operators (MNOs) in 2024.
Speaking at a stakeholders’ forum on the study held in Lagos, the NCC’s Head of Competition and Tariff, Mrs Omotayo Mohammed, said the telecoms market has changed significantly over the years. According to her, shifts in revenue models, investment patterns, technology, and consumer behaviour now require a fresh and holistic review of how competition works across the sector.
She noted that rapid technological change, rising investment costs, evolving consumer expectations, and increased competitive pressure have reshaped the industry. At the same time, concerns around barriers to entry, market concentration, the survival of smaller operators, and service quality remain important and must be carefully examined.
Mrs Mohammed emphasised the strategic importance of the sector, describing telecommunications as the backbone of Nigeria’s digital economy. She said the industry contributed about 9.1% to Nigeria’s GDP as of Q3 2025 and plays a critical role in driving economic growth, financial inclusion, innovation, and service delivery across multiple sectors.
“Competition is what drives innovation, affordability, and consumer choice,” she said. “But it must also be fair, effective, and sustainable. As a regulator, our role is to protect consumers, encourage investment and efficiency, and keep the market open to new ideas and entrants.”
She explained that while the NCC has conducted targeted studies in recent years—such as reviews of mobile voice termination rates—developments in technology, market structure, and consumer behaviour now make a full-scale reassessment necessary.
PwC was selected for the assignment due to its experience in competition economics, market analysis, and regulatory advisory across multiple jurisdictions. Mrs Mohammed said the engagement reflects the NCC’s commitment to independent analysis, strong methodology, and alignment with international best practices.
She stressed that the study is not about identifying winners or losers, but about understanding how the market truly functions across infrastructure, services, pricing, and emerging segments. The findings, she said, will support evidence-based and transparent regulatory decisions.
The study will examine both sides of the market. On the supply side, it will assess factors such as market structure, concentration levels, pricing behaviour, access to critical infrastructure, barriers to entry, and the intensity of competition. On the demand side, it will look at consumer usage patterns, affordability, switching behaviour, service quality, and how easily consumers can make informed choices.
Mrs Mohammed also called on telecom operators and stakeholders to provide accurate and timely data when requested, noting that the quality of the study’s outcomes depends heavily on the reliability of the information submitted. Incomplete or delayed data, she warned, could affect future regulatory decisions.
Also speaking at the event, Akolawole Odunlami, Director of Strategy at PwC Network, said the global telecoms industry is expected to reach $1.3 trillion by 2028, although growth has slowed compared to pre-pandemic levels. He noted that while subscriber numbers continue to rise in sub-Saharan Africa, many operators are experiencing declining average revenue per user (ARPU).
Odunlami highlighted changing consumer behaviour as a major trend, explaining that today’s users are digital-first and increasingly demand services and experiences powered by connectivity, not just basic voice or data. He said telecom operators globally are rethinking their business models by integrating lifestyle services such as health, utilities, entertainment, and fintech into their platforms.
He also pointed to the global rollout of 5G, which is projected to account for 64% of worldwide connectivity by 2028. However, adoption in Nigeria and much of sub-Saharan Africa remains low due to infrastructure gaps, limited R&D investment, and slow uptake of 5G-enabled devices. Short- to medium-term adoption in the region is estimated at just 14–17%, well below the global average.
According to Odunlami, competition in the telecoms sector is no longer defined only by new entrants but also by innovative business models, emerging technologies, and new forms of connectivity. He noted that while AI-driven infrastructure investments are accelerating growth in advanced markets, Nigeria still needs stronger investment and supportive regulation to keep pace.
He explained that market dominance can arise through innovation, investment, effective go-to-market strategies, or anti-competitive practices. The regulator’s role, he said, is to ensure that dominance achieved through unfair practices does not harm competition, while leadership earned through innovation and investment is encouraged.
The NCC–PwC study, he added, is designed to provide a clear, evidence-based picture of market dynamics, identify areas of concern, strengthen regulatory oversight, and support policies that promote fair competition, innovation, and improved service quality.
Comments