Emmanuel Ochayi
In the first nine months of 2023, Nigerian telecom subscribers’ expenditure on airtime and data skyrocketed to N2.59 trillion, as disclosed by financial statements from major telcos MTN Nigeria and Airtel Africa.
This colossal 32.57% surge from the previous year’s N1.95 trillion expenditure showcases an spike in the usage of telecommunications services across the country.
Join our WhatsApp ChannelCommenting on this growth, MTN expressed, “Data revenue grew by 36.4% on increased usage and data conversion in new and existing base.”
This surge in spending was powered by a multitude of factors. Airtel attributed part of its growth to the devaluation of the naira, stating, “Data revenue grew by 29.3% in constant currency, driven by data customer base growth of 17.4% and data ARPU growth of 12.3%.”
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The rise in data revenues continues to outpace voice revenues, indicating a shift towards internet usage. Data revenues for MTN surged by 36.36% year-on-year, while voice revenues saw a comparatively modest growth of 10.64%. This trend signifies a burgeoning reliance on internet services within the nation.
Explaining the reasons behind this surge, MTN highlighted, “Data usage (GB per user) grew by 29.1% to 8.6GB, and the number of smartphones on our network increased by 7.6%, bringing smartphone penetration to 53.4%.”
Airtel reported a similar surge in data usage per customer, reaching 5.9GB per month, fueled by an expansion in their 4G network services.
The escalating use of the internet, particularly due to a rise in video streaming, has propelled overall spending on telecom services in Nigeria. In 2022, consumers spent N3.86 trillion, marking an 18.74% increase from the previous year. Data consumption itself surged by 46.77% to 518,381.78TB in 2022 from 353,118.89TB in 2021.
Industry experts predict that this growth in data consumption will persist, with data revenues expected to surpass voice revenues in the foreseeable future. The World Bank attributes the robust growth in the ICT sector to increased data service consumption by households and businesses, coupled with higher subscriber numbers.
The Ericsson Mobility Report (June 2023) forecasts growth in mobile data traffic in Sub-Saharan Africa, especially in Nigeria, with a 37% annual rise between 2022 and 2028.
The report estimates that average data per active smartphone will reach 19GB per month by 2028, signifying the continued expansion and reliance on data services.
The surge in telecom spending mirrors a profound shift in consumer behavior, with the internet becoming an integral part of daily life and a catalyst for economic growth in Nigeria.
