Telcos Revenue Hits N7.67tr In 2024 Amidst 85% Rise In Operating Cost
THECONSCIENCE NG reports that telecommunications operators in Nigeria recorded a significant 44.7 percent increase in total earnings, rising from ₦5.30 trillion in 2023 to ₦7.67 trillion in 2024.
The growth, according to the 2024 Subscribers/Network Performance Report released by the Nigerian Communications Commission (NCC) on Wednesday, was driven by increased demand for data services, higher subscription rates, and expansion in enterprise solutions, which helped cushion the impact of rising operational costs.
However, the report also revealed a sharp rise in operators’ operating expenses (OPEX), which jumped by 85 percent—from ₦3.16 trillion in 2023 to ₦5.85 trillion in 2024. The NCC attributed this surge to factors such as high Right of Way (RoW) charges, inflation, foreign exchange volatility, and escalating energy costs.
In the 79-page document prepared by the NCC’s Policy, Competition and Economic Analysis Department, the Commission noted:
“Most licensees complained of high Right of Way fees, harsh macroeconomic conditions, and rising inflation. However, the NCC has been able to secure zero Right of Way fees in some states in 2024.”
RoW fees are levies paid by telecom operators to lay fiber-optic cables across public roads and spaces. Reports show that some South-West states, including Ogun, Lagos, and Oyo, charge the highest RoW fees in the country—far above the federal guideline of ₦145 per meter set in 2020. Specifically, Ogun charges ₦9,477 per linear meter, Lagos ₦6,264, Oyo ₦5,303, Cross River ₦4,737, Rivers ₦4,047, Edo ₦3,491, and Ondo ₦3,075.
Despite these challenges, NCC Executive Vice Chairman, Dr. Aminu Maida, disclosed that five additional states—Adamawa, Bauchi, Enugu, Benue, and Zamfara—joined the list of states waiving RoW fees in 2024. This brings the total number of states offering zero-cost RoW to 11, including Anambra, Katsina, Kebbi, Nasarawa, Osun, and Plateau, a move aimed at accelerating broadband infrastructure deployment nationwide.
Further analysis of the NCC report showed that GSM operators spent ₦2.7 trillion on capital expenditure (CAPEX), ₦4.57 trillion on operating costs, and earned ₦5.32 trillion in revenue. Fixed Wired operators recorded ₦60 million in CAPEX, ₦267 million in OPEX, and ₦410 million in revenue. Internet Service Providers (ISPs) invested ₦13.8 billion in CAPEX, spent ₦196.3 billion on OPEX, and generated ₦165.6 billion in revenue. Value Added Service (VAS) operators earned ₦83 billion, with ₦2.75 billion in CAPEX and ₦79.9 billion in OPEX.
Meanwhile, collocation and infrastructure sharing companies spent ₦174.4 billion on CAPEX, ₦961.9 billion on OPEX, and earned ₦2 trillion. Other telecom operators reported ₦1.67 billion in CAPEX, ₦38.2 billion in OPEX, and ₦49.5 billion in total earnings.
