Airtel Nigeria’s data revenue dropped to $344 million in the nine months ending December 31, 2024, down from $539 million recorded in the same period the previous year.
Despite a 37.2% increase in data usage per customer—rising from 6.2GB to 8.4GB per month—the company struggled to translate this higher demand into increased revenue, according to its financial report analyzed on Tuesday.
With 56.6 million subscribers, Airtel—Nigeria’s second-largest telecom operator—implemented a data tariff hike on Monday after the Nigerian Communications Commission approved a 50% industry-wide tariff adjustment.
This aligns Airtel with competitors like MTN, which also raised call and data prices. The company expects this adjustment to help boost revenue in the coming months.
“The price increase, which was highly needed for the survival and continued growth of the industry, will enable us to continue investing in network infrastructure, expanding coverage, and delivering improved products and services that meet the evolving needs of our customers,” said Airtel Nigeria’s CEO, Dinesh Balsingh, in a note shared with The PUNCH in January.
Airtel’s financial performance has benefited from strong mobile data demand, with a 31.4% rise in average revenue per user (ARPU). However, the depreciation of the naira has negatively impacted its reported earnings. The company expects the new tariff structure to help stabilize revenue in the coming quarters.
Additionally, Airtel reported an 8.2% increase in data subscribers alongside the rise in ARPU.
“Data revenue surged by 44.3 per cent in constant currency, driven by solid growth in both the number of data customers and ARPU, which grew by 8.2 per cent and 31.4 per cent, respectively,” the report stated.
Smartphone users are consuming more data, with average usage increasing from 8.8GB to 11.2GB per month.
Nigerian telecom operators have faced financial difficulties due to an 11-year delay in tariff adjustments. The prolonged price freeze has contributed to an estimated $11.3 billion revenue shortfall from 2022 to 2026, mainly due to the naira’s depreciation and rising operational costs.
Inability to adjust tariffs in line with economic conditions has significantly weakened earnings, with operators struggling against forex losses and high inflation despite nominal revenue growth.
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