Nigeria’s booming telecommunications sector has propelled the West African tech economy to new heights, with the region’s telecom sector now valued at an astonishing $63.1 trillion.
This surge is largely driven by the rapid expansion of fintech, e-commerce, and digital marketplaces, which collectively contribute to an impressive 80% annual growth.
In addition to the telecom sector’s remarkable revenue, the region benefits from a $30 billion annual boost to its Gross Domestic Product (GDP) through digital economy activities. The latest statistics from the West African Telecom Regulatory Association (WATRA) highlight why the region’s telecom fortunes are soaring.
WATRA, an association of telecom regulators in West Africa, is dedicated to enhancing telecom service delivery through collaborative efforts. As of 2024, the region boasts over 400 million subscribers, with a mobile penetration growth rate of 21% and over 90% of internet subscriptions.
Notably, internet penetration surged from 21% in 2019 to a staggering 60% in 2023, driven by significant telecom investments and infrastructural development, with Nigeria leading the charge.
The telecom sector’s contribution to the regional GDP stands at 77%, with the advent of 5G technology in Nigeria, Ghana, and other West African countries serving as a key growth driver. In response to these advancements, WATRA has implemented integrated regulatory policies aimed at deepening growth, expanding infrastructure, and broadening the regional marketplace.
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Improved connectivity services are essential for sustaining this growth trajectory. Aliyu Aboki, Executive Secretary of WATRA, emphasized the association’s commitment to enhancing connectivity and reducing costs by optimizing the use of submarine cables that have landed in West African countries.
Aboki stated, “We are working to improve interconnectivity of infrastructure companies. Infrastructure companies should be able to interconnect within West Africa, instead of allowing our data to first travel to Europe before returning to Africa. We need more of the West African data to be hosted in data centres located in West Africa and not in Europe in order to save cost.”
WATRA’s priorities include increasing regional connectivity, reducing data costs, and enhancing access to spectrum. As the umbrella body for telecom regulatory authorities in West Africa, WATRA has played a crucial role in facilitating the achievements of individual regulatory bodies through support and collaboration. This support has led to increased telecom investments, enhanced competition, and streamlined processes, significantly contributing to the growth of the digital economy in the region.
