Nigeria's telecommunications sector achieved remarkable growth in 2024, with mobile service revenue reaching $7.6 billion according to a new PwC report. The Nigerian market is projected to grow at an impressive 8% compound annual growth rate (CAGR) between 2023 and 2028, positioning it among the world's fastest-expanding telecom markets.

This growth stands in contrast to the broader global telecommunications industry, which faces headwinds despite PwC forecasting total revenue to reach $1.3 trillion by 2028. Worldwide telecom service revenue across fixed and mobile networks increased by 4.3% in 2023 to $1.14 trillion, but future growth is expected to slow to a CAGR of just 2.9% through 2028—below projected inflation rates.

Nigeria's telecom expansion is primarily subscription-driven rather than through increased average revenue per user (ARPU). "In Nigeria, fixed-line ARPU is projected to decline at a CAGR of –1.4%, while subscriber numbers rise at a CAGR of 9.8%," the report notes.

The PwC Global Telecom Outlook highlights a fundamental industry challenge: increasing commoditization of core products and services, making price increases difficult despite ongoing infrastructure investment requirements. Nevertheless, the report identifies an additional $200 billion in potential incremental revenue growth across the global sector by 2028.

Regional performance varies significantly, with emerging markets including Nigeria, India, Egypt, and Kenya showing above-average growth, while mature markets like Japan and Switzerland experience stagnation or decline. Colombia leads mobile revenue growth at a 10.5% CAGR, followed by India and Argentina.

Fixed broadband and mobile subscriptions are expected to grow steadily worldwide at CAGRs of 3.8% and 4.3% respectively through 2028, while fixed voice subscriptions are projected to decline at a CAGR of -1.8%.​​​​​​​​​​​​​​​​