Nigeria’s Telecom Sector Poised for Medium to Long-Term Growth Despite Short-Term Challenges

• Cordros Securities sees strong growth prospects for Nigerian telcos driven by data consumption and mobile money expansion
• Short-term risks include currency pressures and rising energy costs, prompting a neutral stance on the sector

Lagos, Nigeria – Nigeria’s telecom sector is expected to show growth in the medium to long term despite a sluggish performance this year, according to an equity research report by Cordros Securities.

“We posit that Nigeria’s listed mobile network operators will maintain another year of sturdy revenue growth, buoyed majorly by data consumption amid steady demand for data services. We expect revenue for our coverage companies, MTNN and AIRTELAFRI, to grow by 24.0% y/y and 1.5% y/y, respectively,” the report stated.