Telecommunication companies appear to be benefiting from their large investments in network infrastructure based on the upward trend in data revenues.
Over time, the service revenues of MTN Nigeria and Airtel Africa, the two publicly traded mobile network providers in the country, have consistently increased. This achievement is the result of significant investments. Between 2020 and 2023, MTN invested N1.78 trillion in network infrastructure, whereas Airtel spent $1.14 billion in the same time frame.
Their subscriber base has increased as a result of these initiatives, increasing their revenue. Enhancing 4G and 5G coverage was the main goal, as it led to a notable rise in the amount of data used by each client.
Data revenues for Airtel Nigeria increased from N28.81 billion ($80 million at N360.06/$) at the end of the June 2019 quarter to N151.15 billion ($116 million at N1,303/$) at the end of the March 2024 quarter. On Airtel, the average monthly data use per consumer increased from 1.63GB to 6.3 GB. Comparably, by the end of Q1, 2024, MTN’s average data use per client had increased to 10.1GB.
According to MTN, as of Q1 2024, 81.6 percent of the population was covered by its 4G network, and 12.4 percent by 5G. Almost all of Airtel Nigeria’s websites have 4G network coverage.
“Our continued investment in the network and expansion of 4G network infrastructure helped us grow both the data customer base and usage levels,” stated Olusegun Ogunsanya, Chief Executive Officer of Airtel Africa.
“We saw a strong 53.4 percent increase in data income, exceeding voice revenue. Our expanded network coverage, better data bundle offers, and increased capacity were the main drivers of the data increase,” MTN Nigeria CEO Karl Toriola stated.
With a customer base that increased from 54.1 million in December 2019 to 81.7 million in March 2024, MTN Nigeria continued to lead, according to NCC data.
From 34.5 million in December 2019 to 63.3 million in March 2024, Airtel Nigeria’s subscriber base increased. The number of Nigerians using smartphones as their main internet connection has increased dramatically as well. According to MTN, the percentage of users on its network using smartphones is currently 55.2%.
One of the main drivers of Nigeria’s economy and the engine of its ambitions for a digital economy is the telecom industry. According to Umar Danbatta, a former executive vice chairman of the Nigerian Communications Commission, the industry has drawn investments totaling $70 billion as of 2022.
The GSMA estimates that between 2023 and 2030, telecom operators in Nigeria and throughout Africa will invest $75 billion in their networks, particularly in 4G. The main goals of this move are to expand to underserved and unserved populations, enhance service quality, and satisfy the increasing demand for Internet services.
Since 2019, Nigeria’s monthly internet usage has increased by more than 500%. The increasing demand for streaming services and other online activities has spurred this growth. The NCC reports that as of March 2024, monthly internet consumption increased from 125,149.86 terabytes (TB) in December 2019 to 753,388.77 TB.
