Rising demand for mobile internet services has continued to reshape Nigeria's telecommunications market, with Airtel Nigeria recording a 52.7 per cent increase in data revenue to N732.6 billion in the six months ended September 2026, contributing significantly to its overall financial growth.
The company's total revenue rose by 45 per cent to N1.37 trillion during the period, compared with N941.2 billion recorded in the corresponding six months of 2025, reflecting increased consumption of digital services and an expanding customer base.
Financial results released by its parent company, Airtel Africa Plc, showed that data services remained the largest revenue contributor to the Nigerian operation, accounting for more than half of its total earnings.
Data revenue increased from N480.7 billion in the corresponding period of the previous year to N732.6 billion, highlighting the growing importance of mobile broadband connectivity to the company's business.
The expansion reflects increasing dependence on internet services by individuals, businesses and institutions for communication, digital payments, entertainment, remote working and other online activities.
Voice services also maintained a strong contribution to the company's earnings, with revenue rising by 37.8 per cent to N498.24 billion, indicating that traditional telecommunications services continue to generate substantial income despite the growing adoption of internet-based communication platforms.
Airtel Nigeria's average revenue per user (ARPU) stood at approximately N3,771 during the period, reflecting improved revenue generation from its expanding subscriber base.
Customer base expands to 61.7 million
The company's revenue growth was accompanied by an increase in subscribers, as its customer base expanded by 15.1 per cent to 61.7 million from 53.6 million recorded in the corresponding period of 2025.
Internet subscribers also increased to 32.9 million from 29.5 million, underscoring the growing adoption of mobile broadband services and the increasing role of data consumption in Nigeria's telecommunications industry.
The expansion in internet subscriptions provides an important growth opportunity for the operator as demand for faster and more reliable connectivity continues to increase across residential, commercial and institutional segments.
The strong financial performance also translated into improved operating profitability, with Airtel Nigeria's underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) increasing by 49.2 per cent to $586 million.
Its EBITDA margin improved to 58.2 per cent from 56.3 per cent in the corresponding period, suggesting improved operational efficiency and stronger earnings capacity despite the challenging business environment.
Airtel increases network investment by 140%
To accommodate rising data traffic and strengthen service delivery, Airtel Nigeria significantly increased its capital expenditure during the period.
The company's investment in infrastructure rose by approximately 140 per cent to $177 million from $74 million recorded in the corresponding period of 2025.
The increased spending is expected to support network expansion, improve coverage and increase capacity to handle the growing volume of internet traffic generated by its expanding subscriber base.
The investment also highlights the capital-intensive nature of telecommunications operations, particularly as operators face increasing pressure to improve connectivity, reduce congestion and deliver more reliable services.
However, the expansion drive comes amid persistent challenges relating to network quality, infrastructure maintenance and rising operating costs.
Rising energy costs threaten operating margins
One of the major challenges confronting Airtel Nigeria during the period was the increase in energy costs, particularly the rising price of fuel required to power telecommunications infrastructure.
Airtel Africa identified escalating energy expenses as a significant operational concern in Nigeria, disclosing that fuel prices had doubled since the beginning of its financial year.
The development has placed additional pressure on operating expenses, as telecommunications operators continue to rely substantially on diesel-powered generators to maintain network operations amid unreliable electricity supply.
For Airtel Nigeria, the rising cost of powering base stations and other network facilities presents an additional challenge as it seeks to expand infrastructure while sustaining profitability.
The situation also highlights the broader difficulties facing telecommunications companies in balancing investment in network quality with the increasing cost of operating in Nigeria.
Airtel Africa revenue rises to $3.82bn
At the group level, Airtel Africa recorded revenue of $3.82 billion, representing a 28.2 per cent increase compared with the corresponding period of the previous financial year.
Profit after tax also rose by 20.5 per cent to $452 million from $376 million, reflecting improved earnings across its African operations.
The group invested $657 million in capital expenditure during the six-month period and added 4,200 network sites across its markets as part of efforts to strengthen coverage and increase network capacity.
Commenting on the performance, Airtel Africa's Chief Executive Officer, Sunil Taldar, attributed the growth to sustained demand across the company's markets despite inflationary pressures and rising energy costs.
He said operational discipline, cost-efficiency initiatives and economies of scale had helped the company maintain profitability while continuing to invest in network infrastructure.
Nigeria remained a major contributor to the group's performance, reflecting the country's strategic importance to Airtel Africa's overall business operations.
Exchange rate movements influence revenue growth
Despite the impressive increase in naira-denominated revenue, the company's financial performance also reflected the influence of foreign exchange movements.
Airtel Nigeria's reported-currency revenue growth stood at 44.6 per cent, compared with constant-currency growth of 26.6 per cent.
The difference indicates that exchange-rate movements contributed to the reported increase in revenue when translated into naira, although underlying business growth also remained substantial.
This distinction is particularly important for multinational telecommunications operators operating in markets exposed to currency volatility, as exchange-rate movements can significantly influence reported financial results.
The figures nevertheless point to the increasing contribution of data services, subscriber expansion and network investment to Airtel Nigeria's earnings.
Going forward, the company's ability to sustain revenue growth will depend largely on its capacity to convert rising internet demand into stronger subscriber monetisation while managing energy expenses, infrastructure costs and foreign exchange exposure.