MNOs need 292 base stations to expand telephony services

Mobile Network Operators (MNOs) will require about 292 base stations to improve and expand telephony services in Nigeria.

This was contained in a presentation made by Financial Derivative on Nigeria’s telecoms sector.

The Managing Director of Financial Derivatives, Bismarck Rewane, at the unveiling of the National Broadband Alliance of Nigeria (NBAN) by the Federal Government in collaboration with the Nigerian Communications Commission (NCC), said Nigeria’s base station count rose by 273 per cent to 137,992 in 2023 from 37, 000 in 2020.

Rewane revealed that in 2019, Nigeria had 34, 000 BTS, which rose to 37,000 in 2020; 2021, 114,000; 2022, 127,294 and 2023, 137,992.

According to him, a single operator may need up to 73 base stations to meet the high demand in the country’s busiest areas, noting that this leads to a dense concentration of base stations in certain areas with little or no coverage in other areas.

Going by his submission, it means the quartet of MTN, Airtel, Globacom and 9mobile will need some 292 base stations, especially in the busiest areas to boost service.

Already, 9mobile said it currently needed about $3 billion to boost its services in Nigeria. This $3 billion, according to the firm, would include building more BTS, upgrading facilities and further expansion into the hinterland.

Further, Rewane noted that increased CAPEX on digital infrastructure expands Internet access, driving digital adoption, saying this enhances efficiency and productivity (TFP), leading to higher incomes, and reduced poverty through improved economic opportunities.

According to him, the telecoms sector remained the backbone of connectivity in Nigeria, saying in Q3 2024, it contributed 9.18 per cent to real GDP, connecting 62.23 per cent of Nigerians to the Internet. He said telecom operators make up 84 per cent (N25.2 trillion) of the country’s Internet GDP (iGDP) put at N30.1 trillion.

He said increased connectivity and Internet penetration would impact sectors including agriculture, oil and gas, manufacturing and commerce.

Rewane said connectivity will boost agricultural extension services, precision farming, and market access while enabling remote monitoring, and enhanced communications in the oil and gas sector.

In the manufacturing sector, he said the Internet of Things, AI integration and supply chain management will have a boost, while commerce will see a boost in eCommerce, mobile payment, and price transparency.

On telecoms impact on the payment system, the Financial Derivative boss said payment transactions grew by 493 per cent over five years.

Further, he disclosed that global information technology spending is expected to rise 9.3 per cent to $5.75 trillion in 2025, up from 7.2 per cent growth in 2024 due to increased focus on digital transformation as the world evolves towards industry 4.0.

According to him, key areas of focus included data centre systems, software enterprise, AI (Nvidia, & Deepseek), cloud services, cybersecurity and E-commerce.

He disclosed that mobile subscriptions are on the rise globally, spurred by increased data demand and 5G rollout, saying 5G subscriptions estimated at 2.27 billion globally in 2024 are expected to be 67 per cent of all mobile subscriptions by 2030 at 6.35 billion.

Rewane noted that in Africa, operators are still focusing on 3G and 4G networks, with 5G only an option in the long term. He said in Nigeria, the share of subscribers using 3G & 4G has risen to 55.95 per cent in Dec 2024 from 41.13 per cent in December

2023.

According to him, 5G adoption is at 2.46 per cent of mobile subscribers in December 2024, up from 1.04 per cent a year earlier.

He said the slow adoption of 5G in Africa is due to ongoing demand for 3G/4G, more basic phones than smartphones, and the high cost of 5G plans amid low disposable income.