COUNTRY FOCUS : NIGERIA
The information and communication technology sector combines manufacturing and service businesses whose products largely fulfil or allow information processing and communication via electronic methods , including transmission and display . The ICT sector contributes to technical advancement , increased output , and productivity .
Market trends
According to market reports by Mordor Intelligence , Nigeria ’ s ICT market is segmented by Hardware , Software , IT Services , Telecommunication Services , Size of the Enterprise that is Small and Medium Enterprise and Large Enterprises , and Industry Vertical that is BFSI , IT , Telecom , Government , Retail and E-commerce , Manufacturing , Energy , Utilities , and Other Industry Verticals .
Increasing population , communication , and adoption of IT and telecommunication services have driven the growth of the Nigerian ICT market . The growth in the market is further supported by regulatory authorities , which play a significant role in 5G network adoption in the country . According to GSMA , smartphone adoption in the country nearly doubled from 44 % in 2014 to 64 % in the last year . The increasing smartphone adoption will further increase the demand for digitalisation .
With rapid technological advancements , telecom businesses are continually focusing on innovation . Thus , they are upgrading their infrastructure while developing state-of-the-art solutions to serve their customers , including innovation , customer service , infrastructure setup , and human resources . Microsoft has partnered with the Nigeria Digital Identification for Development project in capacity development and data protection .
Broadband and telecom
According to Nigeria ’ s telecom industry , GDP contribution grew last year when compared to data from 2015 . Such increasing GDP contribution in the telecom sector will further increase demand for the ICT market .
The IT and telecom sector is significantly growing due to the high rate of various technological adoptions . The economy , government , and huge portions of the country aim to speed up digitalisation by investing in digital infrastructures , devices , software , and services . Furthermore , digital services have benefited users significantly , and new business opportunities have developed . infrastructure positively influence the growth of the Nigeria ICT market . For instance , MTN Nigeria has collaborated with Huawei to construct more than 100 5G base stations . The commercial 5G rollout aims to provide customers with high-speed services .
Government officials collaborate with commercial IT and telecom service providers to boost fibrebased broadband services . For instance , Under the National Communications Backbone project , the Nigerian Communications Commission intends to construct broadband infrastructure . The project will be implemented by laying 120,000 kilometres of fibre across the country , boosting internet penetration to 70 % by 2025 , and linking 60 % of communication towers with fibre .
Fixed broadband penetration will be expected to increase over the next five years , driven by ongoing efforts by the government to expand fixed broadband coverage and services across the country , particularly in rural areas . According to the Ookla Speedtest Global Index , Nigeria ranked 144th with a median fixed broadband download speed of 10.95 Mbps in October last year . Increasing investments in the telecom sectors will create new growth opportunities for the ICT market .
Nigeria ’ s ICT Market is highly competitive , owing to the presence of many small and large players . The market is moderately concentrated , with significant players such as Microsoft , Oracle , Google , Cognizant , and HCL Technologies .
Microsoft has plans to ensure Internet access for over 100 million Africans by 2025 by collaborating with a satellite provider and setting the groundwork for long-term cloud adoption . Google has planned to launch a cloud region in South Africa by building dedicated Cloud Interconnect sites , which link users ’ on-premises networks with Google ’ s grid , in Nairobi , Lagos , Johannesburg , to provide full-scale cloud capabilities for its customers and partners in Africa .
According to Oxford Business Group , the overall profile of the country is a youthful one : some 60 % of citizens are under 25 years of age ; an additional 15 % are between 25 and 29 ; while 16 % are under the age of four , signalling that the population is likely to keep expanding at a fast rate for some time to come , set to reach 300m by 2030 and 400m by 2050 . Still , the life expectancy for Nigerians , according to the UN Development Programme , remains low at 52.9 years .
The increasing demand for high-speed connectivity services and investments in the deployment of 5G
Excerpted and adapted from Nigeria ICT Market , 2023 – 2028 by Mordor Intelligence p
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