Nigerians’ Data Usage Drives 34% Revenue Surge for MNOs
Mobile network operators in Nigeria witnessed a significant boost in earnings, thanks to increased data consumption in the third quarter ending September 30, 2023.
Specifically, during this period, MTN reported earnings of N279.5 billion, marking a 38.9% increase, while Airtel earned N123.7 billion (equivalent to $157 million) from data subscriptions, reflecting a 29.3% growth in data revenue for the company.Together, these earnings amounted to N403.2 billion, indicating an average 34.1% rise in their combined earnings for the period under review.
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MTN’s Chief Executive Officer, Karl Toriola, attributed the surge in data usage and earnings to various factors. These included the revamping of MTN’s data bundle offerings, increased smartphone penetration, and investments in network infrastructure to expand coverage and improve the customer experience. The 4G network now covers 80.5% of the population, data usage per user grew by 29.1% to 8.6GB, and the number of smartphones on their network increased by 7.6%. As a result, they recorded a 46.3% growth in data traffic, with the 4G network accounting for 83.7% of total data usage.
Segun Ogunsanya, CEO of Airtel Africa, highlighted a significant increase in data consumption for Airtel Nigeria during the same period. Data revenue grew by 29.3% in constant currency, driven by a 17.4% increase in the data customer base and a 12.3% growth in data Average Revenue per User (ARPU).
Airtel’s continued rollout of 4G network services played a pivotal role, with nearly 100% of their sites now delivering 4G. Additionally, 233 5G sites became operational. For Q2 ’24, 4G customers accounted for 51.1% of their total data customer base and contributed to 85.3% of total data usage. Q2 ’24 4G data usage per customer reached 11.7GB per month, an increase of 41.3% compared to the previous year.
However, both companies acknowledged the impact of foreign exchange crises in Nigeria on their operations.
The devaluation of the Naira and VAT on lease costs, coupled with ongoing inflationary pressures, were expected to pose challenges in the upcoming quarter. Despite these challenges, MTN and Airtel remained committed to enhancing long-term value and growth in the Nigerian market.
