Nigeria’s telecommunications industry recorded a significant contraction in its workforce in 2024, cutting 383 jobs amid soaring operating expenses and worsening macroeconomic pressures. This is according to newly released Year-End Performance Reports from the Nigerian Communications Commission (NCC) covering 2023 and 2024.

The reports show that the sector’s total staff strength dropped from 17,882 employees in 2023 to 17,499 in 2024, reflecting job losses across multiple segments of the telecom market, including network operations, service providers, and infrastructure companies. The decline underscores the growing strain on operators battling steep cost escalations.

Operating Costs Nearly Double

The job cuts occurred in a year when the industry’s operating expenditure jumped dramatically from ₦3.16 trillion in 2023 to ₦5.85 trillion in 2024, representing an 85.35% year-on-year increase. The NCC attributed the spike to a combination of economic and structural challenges that have intensified the cost of doing business in the sector.

According to the Commission, operators faced:

• Escalating energy expenses, driven by higher fuel prices and unreliable grid supply
• Persistent inflation, which pushed up the cost of equipment, logistics, and staff welfare
• Foreign exchange pressures, affecting the importation of telecom hardware and software
• Multiple taxation and charges imposed by state and local governments
• High network deployment and maintenance costs, despite regulatory interventions

While the NCC successfully negotiated zero Right-of-Way (RoW) fees in some states, many operators still reported heavy financial pressure due to inconsistent implementation and lingering charges across other regions.

Industry Voices Concern

In its assessment, the NCC noted widespread complaints from licensees about the harsh operating environment.

“Most licensees complained of high Right of Way (RoW) fees, harsh microeconomic conditions, and rising inflation,” the Commission stated, emphasizing that these factors continue to threaten sectoral growth and investment.

Economic Pressures Cast a Shadow Over Growth Plans

The telecom sector—responsible for more than 14% of Nigeria’s GDP—remains one of the country’s most critical economic pillars. However, analysts warn that rising costs and job losses could slow network expansion, delay 5G rollout targets, and place upward pressure on service prices.

Stakeholders are calling for stronger policy support, harmonized taxation frameworks, and sustained regulatory interventions to stabilise the industry and protect jobs.

As Nigeria’s digital economy continues to expand, the latest NCC report highlights the urgent need for coordinated action to safeguard the telecom sector’s long-term sustainability.