In Nigeria, the amount of money spent on data and voice calls by individuals has been increasing despite the economic challenges and high cost of living.
This trend has been observed in the telecom industry, with MTN and Airtel reporting significant rises in Average Revenue Per User (ARPU).
Both MTN and Airtel have seen a growth in data and voice consumption among their customers. MTN, for instance, witnessed an increase in data usage from 7 GB to 8.9 GB per month, while Airtel customers increased their usage to 6.3 GB per month from 5.0 GB.
Statistics from these leading mobile network operators reveal that Nigerians consume an average of up to 9 GB of data per month.
This surge in consumption has resulted in an increase in the Average Revenue Per User for these telecom operators. Despite the challenging operating environment, this growth in revenue allows the telcos to sustain their financial trajectory.
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What is interesting is that data, which used to be a secondary source of revenue for telecom service providers, is now becoming their main source of earnings as consumption continues to grow. This shift is evident in the financials of both MTN and Airtel.
For MTN, an average customer now spends N1,869 per month, reflecting a 16.3% increase from the N1,607 spent in 2022. This increase is directly linked to the 27% rise in data consumption by MTN subscribers, from 7 GB per month in 2022 to 8.9 GB in 2023. MTN’s data revenue also jumped from N764.8 billion in 2022 to N1.07 trillion in 2023.
Similarly, Airtel customers in Nigeria now spend an average of N3,127 ($2.4) on data per month, showing a 19% year-on-year growth compared to the N2,606 ($2) recorded in the same period in 2023. Data usage per customer on the Airtel network increased by 25.4% to 6.3 GB per month.
Aside from data, spending on voice calls has also increased. MTN subscribers, for example, now spend an average of N2,508 per month on voice calls, a 14.4% increase from the N2,192 ARPU recorded in 2022. This increase in voice call spending pushed MTN’s voice revenue to N1.14 trillion from N1.03 trillion in 2022.
Similarly, Airtel Nigeria’s revenue analysis shows that an average customer spent N1,694 ($1.3) per month on voice calls as of March 2024, representing a 21.5% increase year-on-year compared to the previous year.
The increase in spending reflects the growing importance of connectivity in the lives of Nigerians, despite economic challenges.
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