NCC engages PwC to review competition amid dominance concerns in telecom sector

The Nigerian Communications Commission (NCC) has engaged PricewaterhouseCoopers (PwC) to conduct a comprehensive review of competition in Nigeria’s telecommunications industry, as concerns mount over market dominance and the sustainability of fair competition.

The announcement was made at a stakeholders’ forum in Lagos during the launch of the Study of Competition in the Nigerian Telecommunications Industry. The move comes as telecoms continue to underpin Nigeria’s digital economy, contributing 9.1% to GDP as of Q3 2025.

The Commission said the study will validate existing competition policies against today’s market realities, following structural and technological shifts across the sector.

Speaking at the forum, Omotayo Mohammed, Head of Tariff, Policy, Competition and Economic Analysis at NCC, said the review is necessary given rapid changes in revenue models, investment patterns, and market dynamics.

She noted that technological advancement, changing consumer behaviour, rising investment costs, and intensifying competition have raised concerns around market concentration, entry barriers, and the long-term viability of smaller operators.

“To support evidence-based decision-making, the Commission has engaged PricewaterhouseCoopers to conduct an independent, data-driven study on the level of competition in the Nigerian telecoms industry,” she said. “The engagement reflects our emphasis on methodological rigour, analytical independence, and alignment with international best practice.”

Mohammed added that the last industry-wide competition study was completed in 2013, with subsequent reviews limited to specific services and segments. She said the scale of change now requires a holistic reassessment across the entire telecommunications value chain.

She stressed that the exercise is diagnostic and evidence-based, and not intended to pre-judge outcomes or single out any operator.

PwC Director of Strategy Akolawole Odunlami described the study as timely, citing structural shifts and slowing growth in the global telecoms industry. He noted that while the global market is projected to reach $1.3 trillion by 2028, annual growth has slowed to 2–3%, down from pre-pandemic levels.

In sub-Saharan Africa, subscriber growth continues, but operators are facing declining average revenue per user (ARPU), intensifying competition and pressure on traditional models.

“Today’s consumers are not just buying data; they are looking for digital experiences such as entertainment, financial services, self-service applications and social connectivity, with data serving as the backbone,” Odunlami said.

He added that telecom operators globally are integrating lifestyle services such as utilities, healthcare, and fintech, while OTT platforms like WhatsApp and Microsoft Teams continue to erode voice and messaging revenues.

Emerging technologies such as 5G and future 6G networks will further reshape competition, but adoption in Nigeria and sub-Saharan Africa remains constrained by infrastructure gaps, limited R&D investment, and slow device uptake. PwC projects regional 5G adoption at 14–17% in the short to medium term, well below global averages.

The review comes as Nigeria welcomes new Mobile Virtual Network Operators (MVNOs). While these players rely on existing mobile network infrastructure, stakeholders have warned that market conditions may suffocate them. As of late 2025, only one of the 43 licensed MVNOs had launched commercial operations.