Nigeria's Telecom Sector Posts Robust Revenue Growth
Nigerians spent a staggering ₦2.53 trillion on voice and data services in the first half of 2025, marking a sharp 50.9% increase from the ₦1.68 trillion recorded during the same period in 2024. This spike in consumer expenditure underscores the increasing reliance on telecommunications services across the country and reflects broader trends including tariff adjustments, expanding smartphone adoption, and deepening investments by the country’s top mobile operators—MTN Nigeria and Airtel Nigeria.
An analysis of the half-year results released by both companies reveals that the two telecom giants collectively enjoyed strong top-line performance, even as they navigated a still-challenging but stabilising macroeconomic environment.
MTN Leads with Over ₦2tn in Revenue, Boosted by Data Growth
MTN Nigeria emerged as the dominant player, generating a total of ₦2.12 trillion in voice and data revenue between January and June 2025. This represents a 55.7% increase over its ₦1.36 trillion earnings in the first half of 2024.
Much of this growth came from data services, with MTN’s data revenue jumping 69.2% year-on-year to ₦1.23 trillion. Voice revenue also expanded, albeit more moderately, rising by 40.3% to ₦887.13 billion. The telco attributed these gains to rising demand, price increases implemented in Q2, and the expansion of its data user base.
By mid-year, MTN had 84.7 million mobile subscribers (up 6.7%) and 51 million active data users (up 11.8%). Data consumption per user grew to 13.2GB per month, supported by a 62.6% smartphone penetration rate and a 41.2% rise in data traffic.
The revenue boost helped MTN swing from a ₦519.1 billion loss in H1 2024 to a ₦414.9 billion profit in H1 2025. Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) more than doubled, climbing 119.5% to ₦1.2 trillion, with a healthy EBITDA margin of 50.6%.
Looking ahead, the company has raised its guidance, forecasting service revenue and EBITDA margin growth of at least 50% for the full year.
Airtel Nigeria Sees Strong Performance, Though Trails MTN
Airtel Nigeria reported a total of $298 million (₦412.43 billion) in voice and data revenue for the same six-month period, representing a 30.1% increase from the ₦316.94 billion posted in H1 2024. Using an exchange rate of ₦1,384 per dollar, as adopted by the company, data and voice services saw solid, albeit less dramatic, gains.
Data revenue rose by 40.2% to $164 million (₦226.98 billion), while voice revenue climbed by 19.1% to $134 million (₦185.46 billion). Airtel’s growth was supported by an 11.3% increase in data subscribers to 29.3 million and a 46.8% jump in average revenue per user (ARPU).
Data usage per subscriber also grew—from 7.3GB monthly in H1 2024 to 9.3GB in 2025—while smartphone penetration reached 51.4%. The telco’s total customer base expanded by 6.3% to 53.6 million.
Airtel Nigeria’s EBITDA rose 49.9% year-on-year to $185 million, with its EBITDA margin improving to 55.7%, reflecting strong revenue growth and effective cost controls.
Stabilising Economy Supports Industry Momentum
The broader economic backdrop provided some tailwinds. Inflation moderated to 22.2% by June 2025, and the Central Bank of Nigeria maintained the monetary policy rate at 27.5%. The naira also stabilised around ₦1,530 per US dollar, creating a more predictable environment for planning and investment.
MTN’s CEO, Karl Toriola, credited the company’s strong performance to “disciplined execution, targeted customer engagement and network investments,” noting a net addition of 3.8 million mobile subscribers despite regulatory pressures related to new SIM registration rules introduced in Q1.
The company also completed the first phase of its $240 million Dabengwa Tier III Data Centre in July, a facility it says will become the largest in West Africa and enable businesses to scale digital operations securely and efficiently.
Airtel Partners with SpaceX to Expand Rural Broadband
Airtel Africa, meanwhile, is expanding its footprint in satellite broadband through a partnership with Elon Musk’s SpaceX. Announced in May 2025, the agreement will bring Starlink’s high-speed internet services to underserved rural communities across Africa, including Nigeria.
The initiative aims to enhance enterprise connectivity and support critical social infrastructure—such as schools and health centres—in hard-to-reach areas. SpaceX has already secured operating licences in nine out of the 14 countries where Airtel operates, with licensing efforts ongoing in the remaining five.
Telecoms: A Pillar of Nigeria’s Digital Economy
The ₦2.53 trillion spent on telecom services in just six months highlights the growing centrality of voice and data connectivity in Nigeria’s economy. As network coverage expands, smartphone usage deepens, and demand for digital services intensifies, the telecom sector is poised to remain a key driver of economic transformation in post-pandemic Nigeria.
With operators like MTN and Airtel investing heavily in infrastructure and technology, competition is expected to intensify, leading to better services, broader access, and new opportunities across the digital value chain.