MTN Nigeria, the country’s largest mobile network operator, reported a significant rise in data revenue for the first quarter of 2024, driven by a surge in internet usage and growing 5G adoption.
Data revenue jumped a staggering 53% year-on-year, reaching N349 billion compared to N227 billion in the same period last year. This growth comes despite a slight decline in the overall subscriber base due to the implementation of the mandatory National Identity Number (NIN) registration for SIM cards.
The increase in data revenue can be attributed to several factors. The number of active data subscribers rose by 8.06%, reaching 44.5 million. Additionally, MTN’s network expansion efforts are paying off, with 4G coverage now reaching 81.6% of the population and 5G base stations covering 12.4%. Smartphone penetration also grew to 55.2%, with data usage per user experiencing a significant increase of 28.5% to an average of 10.1GB per month.
Voice revenue, however, saw a more modest growth of 14.1%, reaching N267 billion. Despite this, voice traffic still rose by 5.1%, highlighting the continued demand for traditional phone calls alongside the data boom.
MTN CEO Karl Toriola acknowledged the impact of the NIN-SIM registration directive on subscriber numbers but emphasized the company’s commitment to network quality and expansion.
“We are continuously investing in network infrastructure,” Toriola stated. “This is reflected in a 49.1% increase in capital expenditure, excluding leases.”
Looking ahead, Toriola echoed calls within the telecom industry for tariff adjustments. He argued that rising operational costs necessitate price increases to ensure continued investment and long-term sustainability of the sector. Negotiations with authorities regarding potential tariff hikes are reportedly ongoing.
