Telcos’ operating expenses rise by 85% to N5.85tr
The operating expenditure (opex) of Nigeria’s telecom sector rose by 85 per cent to N5.85trillion on factors carriers blamed on rising cost of accessing right of way (RoW) and other
The operating expenditure (opex) of Nigeria’s telecom sector rose by 85 per cent to N5.85trillion on factors carriers blamed on rising cost of accessing right of way (RoW) and other factors.
According to figures released by the Nigerian Communications Commission (NCC), a total of N5.854 trillion was the total operating cost collated in year 2024, an increase of 85 per cent from N3.158 trillion spent during the previous reporting year of 2023.
The regulator, in its 2024 Subscriber/Network Performance Report prepared by its Policy, Competition and Economic Analysis Department noted that “Most licensees complained of high Right of Way (RoW) fees, harsh micro economic operating employment (environment) and rising inflation.”
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However, the NCC said it was able to secure zero RoW fees in some states in in 2024.
During the period, the report further segmented the opex and capex of the industry to GSM, fixed wired, internet service providers (ISPs), value added service (VAS), collocation and infrastructure sharing, and other telecom operators.
According to the report, GSM operators’ capex was N2,707,349,350,000.00, opex was 4,577,460,510,000.00 while revenue N5,325,453,820,000.00. FIXED WIRED recorded N60,000,000.00 capex; opex of N267,181,628.00 and N410,437,581.00. ISPs reported N13,827,832,977.26 capex; N196,331,940,965.34 opex and revenue of N165,690,191,444.41.
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VAS providers recorded N2,757,164,586.00 capex; N79,961,941,941.70 opex and N83,099,311,720.70 revenue.
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Collocation and infrastructure sharing posted N174,457,239,010.90 capex; N961,945,491,396.28 opex and N2,049,886,255,131.59 in revenue.
Other telecom operators recorded N1,672,981,819.86 for capex; N38,290,385,294.39 and N49,591,142,329.07 revenue.
Total capex stood at N2,900,124,568,394.02; opex-5,854,257,451,225.71 and total revenue of N7,674,131,158,206.77.
