*The sharp increase in consumer spending in the past year followed a 50 percent telecoms tariff adjustment that the Nigerian Communications Commission approved for Mobile Network Operators early 2025, which invariably, raised the cost of SMS, voice calls, and mobile data bundles across the industry in the country
Gbenga Kayode | ConsumerConnect
The Federal Government has said the combined operations of telecoms companies as Mobile Network Operators (MNOs) led to increased airtime and data services, driving unprecedented industry revenue growth 2025.
ConsumerConnect reports the Nigerian telecoms consumers spent estimated $5.67 billion (N9 trillion) on airtime and data services in the past year amid data surge and enhanced connectivity in the entire digital ecosystem.
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It is also noted the consumers’ expenditure on telecoms services resulted from increasing Internet consumption and tariff increments, the development which has reportedly boosted revenues for the largest network operators in the West African country.
Industry analysts said the significant increase in consumer spending in the past year followed a 50 percent telecoms tariff adjustment, which Nigerian Communications Commission (NCC) had approved for Mobile Network Operators early 2025.
It is noted that the NCC-backed tariff hikes jacked up the costs of SMS, voice calls, and mobile data bundles across the industry in the West African country.
Telcos, including MTN Nigeria Communications Plc and Airtel Nigeria reported strong earnings growth as smartphone adoption and Internet usage accelerated in Nigeria.
As telecoms consumers expended estimated $5.7 billion on airtime and data services in the last year, the development boosted revenues for major network operators in the digital environment.
The surge in telecoms expenditure and earnings for telecoms firms followed the approval of telecoms tariff increases by the Nigerian Communications Commission with commensurate increments in demand for digital services in the economy.
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Despite telecoms consumers’ support for Telcos to increase their earnings in trillions 2025, consumer groups, however, said worsening network quality cum poor Quality of Experience (QoE) yet continues to frustrate subscribers across Nigeria.
Reports further noted that telecoms consumers’ spending surge in the past year helped the network operators, led by MTN Nigeria and Airtel Nigeria, to record and post strong revenue growth despite persistent consumer complaints over poor network quality and service disruptions, especially in the two quarters.
Nigeria’s telecoms market leaders
MTN Nigeria, the country’s largest telecoms operator, report stated, generated about N5.3 trillion, roughly $3.34 billion, in revenue from its 90.3 million subscribers for the financial year ended December 31, 2025.
In view of the company’s Management advocacy for tariff increments prior to NCC’s approval early 2025, the latest market performance reportedly helped the company to return to profitability.
The Telco recorded Profit After Tax (PAT) reaching N1.11 trillion, equivalent to around $699 million.
Similarly, Airtel Nigeria reported revenue of about N3.1 trillion, or approximately $1.95 billion, from its 60.9 million subscribers during its financial year ended March 31, 2026, according to report.
Industry estimates, as well indicated that Globacom and T2, formerly 9mobile, generated nearly N2 trillion, about $1.26 billion combined, from airtime and data services during the same period in the Nigerian economy.
Besides, the significant increase in revenue was largely driven by higher Average Revenue Per User (ARPU), a key telecoms metric that measures monthly subscriber spending on voice, data, and digital services in the digital space.
MTN said its monthly ARPU rose to $3.60 in 2025 from $2.17 a year earlier, according to report.
In Naira terms, average monthly spending per subscriber rose to N5,184 from N3,542.
The operator’s total revenue increased by 55.1 percent year-on-year to N5.2 trillion, supported by stronger smartphone adoption and growing Internet penetration across its network.
MTN said active data subscribers also grew by 11.6 percent, while smartphone penetration rose to 66.1 percent.
Data traffic increased by 34 percent, with average monthly data usage per customer rising by 20 percent to 13.1GB.
The telecoms company also expanded its 4G coverage to 84.6 percent of the population, as it accelerated investment in network infrastructure.
Likewise, Airtel Nigeria also reported significant growth in customer spending.
Monthly ARPU surged to $2.40 2025 from $1.70 in 2024, while average spending in local currency climbed to N3,326 from N2,599.
The telecoms firm announced its revenue increased by 52.8 percent in reported currency terms to $1.6 billion, supported by strong demand for data services and tariff increases earlier approved by the telecoms sector regulatory Commission, and other authorities.
Aitel, in its financial statement, was quoted to have said: “The constant currency revenue growth was driven by ARPU growth of 36.7% and customer base growth of 9.4%.”
As Nigeria’s data boom continues, data revenue at Airtel also rose by 63.6 percent, with average customer data usage increasing by 30.8 percent to 11GB monthly from 8.4GB in the previous year.
Tariff hikes jacked up costs of airtime, data services: report
The sharp rise in consumer spending has been attributed to a 50 percent telecoms tariff adjustment approved by the NCC in early last year.
The development, in turn, has jacked up the costs of SMS, voice calls, and mobile data bundles across the industry till this day.
For instance, the price of SMS rose from N4 to N6, while voice and Internet tariffs were adjusted upward across operator networks.
Cases of disruptive connectivity, poor QoS and consumer experience
Despite the tariff increments and subsequent higher costs of services, telecoms consumers have continued to lodge complaints of poor connectivity, ebbing Quality of Service (QoS), and frustrating consumer experience in the entire digital ecosystem across the country
In view what has been described as data boom, Nigeria’s growing appetite for digital services both in public and private sectors of the economy, has equally continued to fuel data consumption in the country.
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Dr. Aminu Maida, Executive Vice-Chairman and Chief Executive Officer (EVC/CEO) of NCC, speaking at an event, recently disclosed that Nigerians now consume about 45,800 terabytes of data daily.
The Commission noted that the development reflects the country’s growing reliance on streaming platforms, digital payments, e-commerce, and online services in the emerging Nigeria Digital Economy.
The industry regulator also disclosed that total data consumption March 2026 alone reached 1.42 million terabytes, up from 995,000 terabytes during the same period 2025.
Maida reportedly stated: “In March 2026 alone, Nigerians consumed over 1.42 million terabytes of data.”
The increase, he noted, was equivalent to over 15 million hours of high-definition video streamed daily.
However, despite the new performance outlook resulting from rapid rise in data usage, industry analysts said the development had equally stretched existing telecoms infrastructure, contributing to poor service quality in several parts of the country.
The leadership of the telecoms sector regulator, however, assured Nigerians that operators have committed to upgrading 12,000 network sites 2026, to improve capacity and network performance in the country’s digital space.
Industry analysts as well opined the latest revenue growth trajectory reflected Nigeria’s accelerating digital transformation.
According to them, digital consumers increasingly are relying on mobile Broadband connectivity for entertainment, banking, e-commerce, and other business activities in public and private sectors.
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Public affairs analyst Musa Lekan Alebiosu said mobile Broadband had become the main growth driver for telecoms companies in Nigeria, as consumers shift from traditional voice services to Internet-based activities, including video streaming and Financial Technology (FinTech) space.
But consumer advocacy groups, have argued that the sharp increase in subscriber spending in Nigeria has not translated into any meaningful improvements in service quality and enhanced consumer experience.
In his remarks on the status quo, Chief Deolu Ogunbanjo, President of the National Association of Telecommunications Subscribers (NATCOMS), said network operators should channel more of their earnings into strengthening network infrastructure to address persistent complaints over dropped calls, slow Internet speeds and unstable connectivity in the economy.
Other analysts also noted though telecoms companies posted record revenues 2025, network infrastructure yet remains under pressure from increasing demand, leaving millions of consumers frustrated in the country’s digital space.