Nigeria’s contributions to the West African technology economy have resulted in a significant increase in its value, reaching an impressive $63.1 trillion.
The telecommunications sector in Nigeria has significantly enhanced the technological economy of West Africa, with the industry now valued at $63.1 trillion.
This substantial revenue is primarily generated from sectors
such as Fintech, E-commerce, and Digital Marketplaces, which collectively
account for an annual growth rate of 80 percent.
Additionally, the region benefits from an annual infusion of
$30 billion into its Gross Domestic Product (GDP) through activities related to
the Digital Economy.
Analyzing the data provided by the West African Telecom
Regulatory Association (WATRA) reveals the reasons behind the promising outlook
for the telecommunications industry in the region.
WATRA is a collaborative body of regulatory authorities
within the West African sub-region. Its primary objective is to enhance the
delivery of telecommunications services in West Africa.
As of 2024, the region boasts over 400 million subscribers.
The mobile penetration growth rate stands at an impressive 21 percent, with
internet subscriptions accounting for over 90 percent of the total.
Furthermore, there was a notable 21 percent increase in
2019, followed by a substantial surge to 60 percent in 2023. These remarkable
growth trends are attributed to significant investments in telecommunications
infrastructure across the region, with Nigeria playing a leading role.
The telecommunications industry accounts for 77 percent of
the regional GDP, with the introduction of 5G technology in Nigeria, Ghana, and
several other West African nations serving as significant catalysts for this
remarkable growth.
In response to these developments, WATRA has implemented
several integrated regulatory policies aimed at fostering growth, enhancing
infrastructure, and expanding the regional market.
While WATRA does not function as a regulatory body, it
asserts that regional integration, lower data costs, and improved connectivity
services are essential for maintaining this upward trajectory.
According to Aliyu Aboki, the Executive Secretary of the
association, WATRA is collaborating to enhance connectivity and reduce expenses
associated with the various submarine cables that have reached West African
shores. Additionally, efforts are underway to improve the interconnectivity
among infrastructure companies.
It is imperative for these companies to establish
connections within West Africa, rather than allowing data to first travel to
Europe before returning to Africa.
To achieve cost savings, it is crucial to host a greater
volume of West African data in local data centers rather than in Europe.
Our primary objective is to enhance regional connectivity,
lower data costs, and improve access to spectrum.
As the overarching body representing all telecommunications
regulatory authorities in West Africa, WATRA has been instrumental in
supporting the achievements of individual regulatory agencies through
cooperative initiatives and strategic assistance.
Our efforts have led to a significant rise in
telecommunications investments throughout the region.
We work closely with individual regulators to promote
competition and simplify regulatory frameworks.
Additionally, through successful collaboration, WATRA has
significantly contributed to the advancement and expansion of the digital
economy in the region.