Airtel Nigeria, the country’s second-largest telecommunications operator, recently reported a significant revenue decline, primarily due to the sharp depreciation of the Nigerian naira.

Despite these financial obstacles, the company remains optimistic about future growth, supported by strategic pricing adjustments and increased demand for data services.

Financial Performance Overview

For the fiscal year ending December 31, 2024, Airtel Nigeria recorded a 40.34% decline in mobile services revenue, which fell to $738 million from $1.2 billion in the previous year.

The decline was driven by the severe devaluation of the naira, which lost over 40% of its value during the period. This currency depreciation severely impacted revenue when converted to U.S. dollars, despite a 35% growth in constant currency terms.

Key Financial Metrics:

• Mobile Services Revenue: Dropped by 40.34% to $738 million.
• Voice Revenue: Declined by 46.34% to $315 million.
• Data Revenue: Decreased by 36.28% to $344 million.
• EBITDA: Stood at $360 million, marking a 46.4% decline in reported currency but a 20.6% increase in constant currency.
• Operating Free Cash Flow: Increased by 85% in constant currency but declined by 48% in reported currency.

The naira’s devaluation, from an average exchange rate of NGN/USD 677 to NGN/USD 1,532, and rising operational expenses, including a 60% surge in diesel prices, further worsened Airtel Nigeria’s financial strain.

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Resilient Customer Growth and Data Demand

Despite these financial setbacks, Airtel Nigeria’s subscriber base grew by 3.17% to 52.1 million users. Additionally, data consumption surged as average data usage per customer increased by 37.2% to 8.4 GB per month.

This growth was partly driven by an increase in smartphone penetration, which rose by 6.4% to 49.5%. The rise in data usage indicates a shift in consumer behaviour, with more customers relying on mobile data services for communication, entertainment, and business needs.

Tariff Hike: A Strategic Move for Recovery

To mitigate the financial impact of currency devaluation and inflation, the Nigerian Communications Commission (NCC) approved a 50% increase in telecom tariffs.

Airtel Nigeria implemented the new pricing structure in early 2025, adjusting charges across voice, SMS, and data services. For example, SMS costs increased from N4 to N6 per message.

Airtel Nigeria’s CEO, Dinesh Balsingh, expressed confidence in the recovery strategy, stating:

“The price increase, which was highly needed for the survival and 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.”

Airtel Africa’s Strong Performance in Contrast

While Airtel Nigeria faced revenue challenges, Airtel Africa performed robustly, reporting:

• Profit after tax: $248 million (N190.4 billion).
• Revenue Growth: 20.4% increase in constant currency to $3.64 billion.
• Mobile Money Revenue: Grew by 29.6% to $731 million.
• Subscriber Base Growth: Increased by 7.9% to 163.1 million.
• Investment in Network Expansion: $456 million (N352 billion) allocated to support service improvements.

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Future Outlook: Navigating Economic Challenges

Looking ahead, Airtel Nigeria is optimistic about revenue recovery, with plans to leverage the tariff hike and potential currency stabilization to regain financial momentum in 2025. The company aims to:

• Invest in network infrastructure to improve service quality and expand coverage.
• Enhance digital services and mobile money solutions to meet evolving customer needs.
• Strengthen partnerships with regulatory bodies and stakeholders to drive industry growth.

While Airtel Nigeria’s revenue suffered due to macroeconomic challenges, the company remains focused on long-term growth.

The combination of a resilient customer base, increasing data consumption, and a strategic tariff adjustment positions the telecom operator for potential recovery.

As Nigeria’s digital economy continues to expand, Airtel Nigeria’s efforts to enhance connectivity and affordability will play a crucial role in shaping the future of telecommunications in the country.