RISE IN SMARTPHONE OWNERSHIP GIVES PUSH TO N162bn VAS MARKET IN NIGERIA

Nigeria’s mobile Value Added Service (VAS) market, previously assessed at N162 billion ($1 billion), is projected to experience significant growth. The overall expansion owes thanks mainly to the considerable rise in smartphone usage, market proliferation, and collaborative initiatives from the government and telecommunication companies to enhance broadband accessibility, according to industry insiders.
Under the auspices of the National Broadband Council, efforts are ramped up to widen 3G coverage to reach half of Nigeria’s population.
Smartphone users are estimated to increase rapidly from 5.6 million at the close of 2012 to over 35 million in 2017, reports Informa and Telecoms and Media.
It’s anticipated that the African mobile VAS market will reach $11.5 billion by the end of 2024, says Ugo Okoye, CEO of Iconcept Limited. This growth trajectory can be largely attributed to the surge in smartphone penetration.
Low-end smartphones are gaining ground quickly, and market analysts predict a compound annual growth rate of 15 percent in the coming years. This trend should foster more innovative approaches in creating newer, upgraded content services targeted at the Nigerian population, as shared by Okoye.
Okoye mentioned the substantial recent growth in the mobile VAS sector, attributing this to Mobile Network Operators diversifying their revenue sources beyond just voice services.
The widespread adoption of smartphones and tablet PCs bolsters demand for Mobile VAS. Industry analysts believe this trend will continue as local content creators and other stakeholders aim to broaden the market’s scope.
Paul Lee, Global TMT Director at Deloitte, pointed out the increasing usage of instant messaging services from Over-The-Top providers like WhatsApp, Viber, Facebook, and BBM, particularly among younger demographics. This usage contributes significantly to a decline in voice revenues.
With the escalating penetration of smartphones and the subsequent demand for data services, Mobile Network Operators need to create innovative VAS services such as mobile apps and content services to ensure consistent revenue, states iConcept’s CEO.
Industry experts predict that the upsurge of mobile VAS will lead to exceptional growth opportunities for telecom operators, generating new revenue streams in the future.
Osondu Nwokoro, Director of Regulatory Affairs at Airtel Nigeria, says, “We are proactively collaborating with original equipment manufacturers to boost smartphone distribution among Nigerians.”

Source: Ben Uzor Jr./Business Day

Light edits were made in 2025 to improve clarity and relevance.