Telecommunications Struggles in Nigeria: A 2024 Review
Nigeria’s telecommunication sector has witnessed a significant downturn as declining average revenue per user (ARPU) and naira depreciation have shrunk earnings, impacting companies like MTN and Airtel. Once the top market for these operators, Nigeria’s revenues were affected by the 2023 naira devaluation, reducing investor dividends and pushing Nigeria down the earnings’ rankings.
In specific figures, MTN Nigeria saw a fall in its ARPU to $2.17 by the end of 2024, compared to $3.36 in Q4 2023, contributing to a broader regional ranking drop. Similarly, Airtel Nigeria’s ARPU plummeted by 75% to $1.6 in December 2024. Consequently, the Nigerian Communications Commission (NCC) approved a 50% tariff price hike to manage the disparity between operational costs and dwindling earnings. Going forward, operators like MTN and Airtel anticipate increased investment to alleviate service quality concerns and align with NCC directives.
Key Takeaways:
- Nigeria’s ARPU dropped dramatically, hitting telecom operators hard due to the devaluation of the naira.
- Both MTN and Airtel experienced significant revenue declines, leading to a regulatory-approved hike in tariffs.
- Tariff adjustments are expected to pave the way for increased investment and improved service quality in 2025.
How will these telecommunication changes in Nigeria news affect consumers’ choices and the industry’s future landscape? Share your thoughts below!
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