MTNand Airtel see a 32% increase in Average Revenue Per User (ARPU) following tariff increases, yet consumers foot the bill.
In the rapidly evolving landscape of Nigeria's telecommunications sector, two major players, Airtel and MTN, have reported impressive growth figures for the second quarter of 2025.
Airtel's revenue soared by 29.69% year-on-year, reaching a staggering $332 million, according to recent reports. Meanwhile, MTN Nigeria contributed significantly to the Group's revenue growth, with a 23.19% increase to $5.94 billion in the first half of 2025.
The growth comes amidst a 50% increase in telecom tariffs and a rise in the average cost of 1GB of data to ₦431.25 from ₦287.50. These changes, aimed at improving service delivery, have been met with a mixed response from subscribers, who are grappling with the impact of double-digit inflation.
Aminu Maida, the executive vice chairman of the Nigerian Communications Commission (NCC), has urged patience from subscribers as operators invest heavily in their networks. The NCC's approval of cost-reflective pricing has unlocked over $1 billion in new telecom investments for 2025, a move that is seen as a turning point for the country's largest operators.
Both Airtel and MTN have reduced their capital spending in the past year. Airtel's capex spend rose to $39 million in Q2, 2025, from $38 million in Q2, 2024, while MTN's core capex spend is up 2679.0% to N363.25 billion ($236.66 million) in Q2, 2025.
Despite the reduced spending, both companies have seen growth in their Average Revenue Per User (ARPU). Airtel's ARPU grew by 23.53% to $2.1, and MTN's ARPU grew by 37.89% to $3.02 in Q2 2025.
However, the tariff-driven recovery has not been without controversy. Adeolu Ogunbanjo, president of the National Association of Telecoms Subscribers (NATCOMS), has expressed concerns about the impact of the hikes on ordinary Nigerians. He stated that the increases have imposed untold hardship on many already grappling with inflation.
Operators are rolling out upgrades in phases, prioritizing areas in dire need before expanding nationwide. This strategic approach is aimed at ensuring that the improvements in service delivery reach all subscribers as soon as possible.
In other news, the tech community is abuzz with excitement about an upcoming event called Moonshot, taking place in Lagos on October 15-16. Organised by a leading website, the event features Africa's top founders, creatives, and tech leaders. Early bird tickets are currently 20% off.
In conclusion, the Nigerian telecom sector continues to evolve, with Airtel and MTN leading the charge towards growth and improved service delivery. Despite the challenges, the sector remains a beacon of innovation and progress in Africa's largest economy.
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