A 50% hike in telecom tariffs has propelled MTN and Airtel’s earnings in Nigeria, sending their mixed common income per person (ARPU) up 31.6% within the second quarter of 2025. The positive factors are unlocking long-delayed community investments, however they’re additionally squeezing customers already battered by inflation and a collapsing forex.
Airtel’s ARPU grew 23.53% to $2.1 in Q2 2025 from $1.7 a yr earlier, serving to improve income by 29.69% year-on-year to $332 million. MTN fared even higher, with ARPU rising 37.89% to $3.02 from $2.19, with income surging 67.88% to ₦1.32 trillion ($859.83 million).
ARPU measures how a lot telcos earn from every buyer, indicating whether or not revenues are sufficient to cowl working prices and fund capital investments. For years, it has been beneath stress. Regardless of subscriber development, greenback revenues stalled because the naira collapsed from ₦471/$ in June 2023 to ₦1,534.93/$ by August 20, 2025.
The tariff-driven restoration marks a turning level for Nigeria’s largest operators, who for years in the reduction of on capital spending as naira devaluation made dollar-denominated investments unaffordable. MTN slashed core capex by 28% within the first 9 months of 2024, whereas Airtel diminished spending by 37%, leaving prospects with dropped calls and unreliable web.
“Cellular service suppliers must generate enough income to cowl their working prices… If this isn’t realised, they’re more likely to in the reduction of on both capital or working expenditure or each,” GSMA warned about Nigeria in 2024.
With new tariffs launched, MTN and Airtel have turned the nook, with income will increase in each naira and greenback phrases. Airtel Nigeria’s ARPU is now solely second to Airtel’s francophone operations in Africa.
MTN Nigeria stays one of many Group’s lower-earning markets, rating twelfth amongst its markets, effectively behind Ghana’s $5.60, MTN’s highest-earning market. Nonetheless, Nigeria was a robust contributor to the Group’s 23.19% income development to $5.94 billion in H1, 2025, from $4.82 billion in H1, 2024.
“The approval of value changes in Nigeria, which have been phased in in the course of the interval, largely benefiting Q2, boosted MTN Nigeria and the Group’s service income enlargement,” mentioned Ralph Mupita, Group President and CEO of MTN.
This rise in ARPU is encouraging long-overdue investments in telecom infrastructure, following years of underinvestment that restricted community enlargement and worsened service high quality. Airtel’s capex spend rose to $39 million in Q2, 2025, from $38 million in Q2, 2024. MTN’s core capex spend is up 2679.0% to N363.25 billion ($236.66 million) in Q2, 2025.
The Nigerian Communications Fee (NCC) mentioned January’s approval restored cost-reflective pricing, unlocking over $1 billion in new telecom investments for this yr alone.
“The mere act of approving the rise has unlocked funding,” mentioned Aminu Maida, NCC’s government vice chairman. “Cumulatively, this yr, we’re already seeing over a billion {dollars} going into core infrastructure. This wasn’t occurring in 2022, 2023, or 2024.”
Nonetheless, this ARPU restoration has come at nice value to subscribers. “The hike has imposed untold hardship on many Nigerians already grappling with double-digit inflation,” mentioned Adeolu Ogunbanjo, president of the Nationwide Affiliation of Telecoms Subscribers (NATCOMS).
The typical value of 1GB of knowledge has risen to ₦431.25 from ₦287.50. He argued that the one justification for this hardship have to be higher community companies. Based on Maida, this may increasingly take time, contemplating the method concerned in turning capital into service enhancements.
Operators are additionally rolling out upgrades in phases, prioritising areas in dire want earlier than increasing nationwide. Service supply will enhance, Maida assured, however subscribers have to be affected person as operators make investments closely of their networks.
When the NCC authorised tariff hikes, operators have been effectively underwater as their core product—connectivity—struggled. At this time, they’re near shore and not gasping for breath, however the service Nigerians are having to pay extra for is but to catch up.
Mark your calendars! Moonshot by TechCabal is again in Lagos on October 15–16! Be part of Africa’s prime founders, creatives & tech leaders for two days of keynotes, mixers & future-forward concepts. Early chicken tickets now 20% off—don’t snooze! moonshot.techcabal.com
Elevate your perspective with NextTech Information, the place innovation meets perception.
Uncover the newest breakthroughs, get unique updates, and join with a worldwide community of future-focused thinkers.
Unlock tomorrow’s developments immediately: learn extra, subscribe to our publication, and turn into a part of the NextTech group at NextTech-news.com
