By 
Nigeria’s telecommunications industry shed 383 jobs in 2024, as operators battled rising operational costs driven by inflation, foreign exchange volatility, and persistent energy challenges, according to new data from the Nigerian Communications Commission (NCC).
The NCC’s 2023 and 2024 Year-End Performance Reports show that total industry employment declined from 17,882 workers in 2023 to 17,499 workers in 2024, even as operators’ operating expenses surged from ₦3.16tn to ₦5.85tn—an 85.35% year-on-year increase.
The Commission attributed the spike in operating costs to escalating diesel and power expenses, inflationary pressures, forex constraints affecting equipment purchases, and continued imposition of multiple taxes and levies at state and local levels. Despite the NCC securing zero Right-of-Way fees in some states, operators still reported significant financial strain in network rollout and maintenance.
Breakdown of staff reductions showed:
-
GSM operators recorded the steepest cuts, reducing staff strength from 7,212 to 6,658.
-
Internet Service Providers (ISPs) trimmed their workforce from 5,589 to 5,473.
-
Value-Added Services (VAS) providers cut jobs from 813 to 713.
Some segments, however, saw incremental gains:
-
Collocation and Infrastructure-sharing firms increased staff from 1,574 to 1,751.
-
The “Others” category grew from 2,426 to 2,632.
-
Fixed-line operators rose slightly from 268 to 272 employees.
These gains were insufficient to offset workforce losses in major segments.
A major contributor to the industrywide contraction was the significant decline in active subscriber numbers following enforcement of the NIN-SIM linkage policy. Active voice subscriptions fell from 224.7 million in 2023 to 164.9 million in 2024—a 26.61% drop. Teledensity declined at the same rate, falling to 76.08% from 103.66%, based on the Nigerian Population Commission’s projected population of 216 million.
According to the NCC, the subscriber decline stemmed from the removal of SIMs not linked to verified NINs and the correction of major reporting discrepancies by a mobile operator.
Despite these challenges, the industry recorded notable growth in investment and infrastructure:
-
Capital expenditure (CAPEX) rose from ₦990.55bn in 2023 to ₦2.90tn in 2024, largely due to the higher cost of imported equipment and continued network expansion.
-
Telecom towers increased from 39,356 to 39,880.
-
Base stations grew from 137,992 to 145,141.
-
Fibre optic deployments also accelerated.
-
Industry revenue increased from ₦5.30tn to ₦7.67tn, representing 44.70% growth.
Telecommunications contributed 14.40% to Nigeria’s GDP in Q4 2024, up from 14% in Q4 2023, underscoring the sector’s continued resilience.
However, operators stressed that rising costs remain a threat to long-term sustainability. Industry insiders have repeatedly warned that if forex pressures and inflation persist, more operators—particularly smaller players—may struggle to remain afloat. Some small operators have already begun downsizing to weather current economic conditions.
Labour tensions also intensified in 2024. Last year, nearly 800 workers under the Private Telecommunications and Communications Senior Staff Association (PTECSSAN) embarked on strike, citing precarious working conditions, non-recognition of union rights, and the dismissal of union members. The union warned that failure to address these issues could result in widespread service disruptions and a potential communication blackout.
The NCC report paints a clear picture: while Nigeria’s telecom sector continues to expand its infrastructure and revenues, rising macroeconomic pressures and regulatory adjustments are reshaping the workforce and operational landscape—and may continue to do so in the years ahead.
Comments