Digitnomics 
By Odiri Uchenunu,
Nigeria’s two largest telecommunications operators, MTN Nigeria and Airtel Nigeria, have grown their combined subscriber base to nearly 148 million as rising smartphone adoption and surging internet consumption continue to reshape Africa’s biggest telecom market and drive a sharp increase in data revenues.
The latest financial results released by both operators show that Nigeria’s telecom industry is entering a new phase of growth powered less by voice calls and more by digital services, mobile internet usage, fintech and data monetisation.
MTN Nigeria, which reports its financial year on a calendar basis ending December 31, grew its mobile subscriber base to 89.5 million in the first quarter of 2026, while Airtel Nigeria, whose parent company Airtel Africa reports on a March-ending financial year, expanded its customer base to 58.3 million subscribers for the year ended March 2026.
Combined, both operators now serve approximately 147.8 million subscribers across Nigeria, reinforcing the country’s position as Africa’s largest telecom market by customer size and data consumption.
The subscriber growth came alongside a strong surge in data revenue and profitability as Nigerians increasingly rely on mobile internet for entertainment, business, digital payments, education and social communication.
MTN Nigeria reported that data revenue grew 56.2 per cent year-on-year in the first quarter of 2026, helping lift total revenue to N1.498 trillion from N1.058 trillion recorded in the corresponding quarter of 2025.
The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to N828 billion in Q1 2026 from N491 billion in Q1 2025, while profit after tax surged 165.9 percent to N355.5 billion from N133.7 billion a year earlier.
For the full-year 2025 financial period, MTN Nigeria posted revenue of N5.203 trillion, representing a 55.9 per cent increase from N3.337 trillion in 2024.
EBITDA climbed to N2.744 trillion with margins improving to 52.7 percent, while the company returned strongly to profitability with profit after tax of N1.113 trillion after previous losses linked largely to foreign exchange pressures.
Airtel Nigeria also recorded strong growth across its operations.
Airtel Africa’s Nigeria mobile services segment generated full-year revenue of $1.598 billion for the financial year ended March 31, 2026, representing 52.8 percent reported growth and 47.4 percent growth in constant currency.
Data revenue emerged as the biggest growth driver, rising 69.8 percent on a reported basis to $820 million.
Underlying EBITDA reached $924 million, with EBITDA margins strengthening to 57.8 percent.
In the quarter ended March 2026 specifically, Airtel Nigeria recorded revenue of $475 million and EBITDA of $284 million at a margin of 59.7 percent.
The results underline how rapidly rising internet consumption is transforming telecom earnings in Nigeria.
MTN Nigeria said average monthly data usage per subscriber climbed to 14.3 gigabytes during the first quarter of 2026, while smartphone penetration on its network rose to 66.2 percent.
Airtel Nigeria also saw monthly data usage per customer increase by 30.8 per cent to 11 gigabytes, while smartphone penetration rose to 54.9 percent.
The increase in smartphone users and data traffic is enabling telecom operators to generate stronger returns from digital services and network investments.
Industry analysts say Nigeria’s telecom market is gradually transitioning from subscriber-led competition to a more mature market focused on revenue quality, digital engagement and monetisation efficiency.
The operators are also increasingly benefiting from the growing role of mobile connectivity in Nigeria’s economy as millions of consumers depend on mobile networks for banking, streaming, e-commerce, education and enterprise services.
Speaking on MTN Nigeria’s first-quarter 2026 results, the company’s Chief Executive Officer, Karl Toriola, said the performance reflected strong momentum and increasing customer trust in the company’s network.
“We have just announced our Q1 2026 Results, reflecting strong momentum. Beyond the highlights, what matters most is what these results enable us to do for our customers,” Toriola said.
He noted that MTN Nigeria significantly increased infrastructure investment during the quarter to support rising customer demand and improve network quality.
“Our Capex increased by 92.89 percent, from N202.4 billion in Q1 2025 to N390.3 billion in Q1 2026. This reflects our commitment. The more our customers place their trust in us, the more we will continue to invest in the infrastructure that powers their experience,” he said.
According to him, the company remains focused on expanding network coverage and improving service reliability for its growing customer base.
“We are mindful of the responsibility of serving 89.5 million subscribers, and we remain focused on improving the quality, reliability, and reach of our network,” Toriola added.
He thanked regulators, shareholders and subscribers for supporting the company’s long-term growth strategy.
“Sincere appreciation to the government and our regulators for creating an enabling environment and to our shareholders for their continued confidence in our long-term strategy and sustained investment in the business.
“To all MTNers at MTN Nigeria who continue to show up and give their best, thank you.
“And most importantly, to our 89.5 million subscribers, thank you. We are because of you,” he said.
At Airtel Africa, Group Chief Executive Officer, Sunil Taldar, said the company recorded one of its strongest operational performances due to favourable industry fundamentals and growing digital adoption.
“This year delivered a very strong performance across both operating and financial metrics, reflecting the attractive industry fundamentals and structural growth drivers across our footprint,” Taldar said.
“This backdrop, and the continued success of our strategy contributed to our highest level of customer additions, revenue and EBITDA growth.”
According to him, the company’s digital transformation strategy, including the deployment of artificial intelligence tools and customer-focused applications, helped improve user experience and operational efficiency.
“Adoption of new digital technologies and AI has been pivotal in unlocking growth opportunities and driving efficiencies, with wide-ranging rollouts enhancing customer experience through site-level network optimisation, streamlined onboarding and accelerating the rollout of myAirtel app,” he said.
Taldar disclosed that Airtel Africa recorded a 22 per cent increase in smartphone customers to 91 million across its operations, supporting nearly 50 per cent growth in data traffic.
He also highlighted the rapid expansion of Airtel Money, which processed annualised transaction value of more than $215 billion in the fourth quarter of 2026.
“Airtel Money has made strong progress across digital adoption, ecosystem expansion and product innovation this year. Customer engagement continues to deepen, with app transacting customers up 74 percent and annualised TPV of over $215bn in Q4’26,” he said.
Despite the strong performance, both operators acknowledged that rising energy prices and continued network expansion would keep capital expenditure elevated.
Taldar warned that higher global energy costs linked to geopolitical tensions could increase operational expenses and create short-term pressure on margins.
However, analysts say the long-term outlook for Nigeria’s telecom sector remains positive as internet penetration, digital payments and online content consumption continue to expand rapidly.
The latest results also show the impact of tariff adjustments introduced in 2025, which helped operators improve average revenue per user and offset inflationary pressures.
Airtel Nigeria’s mobile services average revenue per user rose to $2.4 for the full year and $2.8 in the final quarter, while MTN Nigeria also benefited from stronger customer spending and improved service monetisation.
Beyond traditional telecom services, both operators are deepening investments in fintech, enterprise connectivity, cloud services and digital platforms as competition intensifies in Nigeria’s digital economy.
Analysts believe the sector is increasingly moving away from a pure connectivity business into a broader technology ecosystem where telecom operators serve as platforms for financial services, digital commerce and enterprise solutions.
For investors and industry observers, the latest earnings reinforce the growing importance of data consumption in shaping the future of telecom profitability in Nigeria.
With nearly 148 million combined subscribers, rapidly expanding smartphone adoption and strong double-digit data revenue growth, MTN Nigeria and Airtel Nigeria are positioning themselves at the centre of the country’s digital transformation and internet economy expansion.
