MTN, Airtel, Other Telcos Record N5.3 Trillion in Revenue as Subscriber Base Hits 224 Million
- Telecommunication companies in Nigeria saw a major increase in profit as their revenue hit N5 trillion
- According to a report by the NCC, the number of subscribers also rose to 224 million in the period of focus
- The report also showed that the telecom industry’s share of Nigeria’s GDP grew from 13.55% to 14% during the period reviewed
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.
Telecom companies (Telcos) operating in Nigeria made N5.3 trillion in revenue from services like voice and data in 2023.
This was due to a rise in telecom subscriptions, which reached 224 million in 2023, up from 222 million the year before.
Source: UGC
Recall that Legit.ng earlier reported that telecom subscribers spent N44.7 billion on sending text messages (SMS) across networks in this period.
Active subscribers increased
The Nigerian Communications Commission (NCC) shared this information in its 2023 year-end report titled “2023 Subscriber/Network Performance Report.”
The report showed that GSM operators earned N4 trillion, fixed wired operators made N273 billion, Internet Service Providers (ISPs) earned about N89.8 billion, Value Added Service Providers (VAS) made N14.6 billion, Collocation and Infrastructure Sharing operators got N1.14 trillion, and other operators brought in N41.8 billion, adding up to N5.3 trillion in total.
The NCC report shows that the telecom industry’s share of Nigeria’s GDP grew from 13.55% to 14% during the period reviewed.
The number of active subscribers also increased from 222.6 million in 2022 to 224.7 million by December 2023, with data usage surpassing 713 terabytes.
The report also highlighted growth in all financial areas of the telecom sector, with capital expenditure (CAPEX) reaching N990.55 billion in domestic investments, while the operating cost for telecom companies in Nigeria was N3.16 trillion.
According to the Central Bank of Nigeria (CBN), foreign direct investment (FDI) in the telecom sector in 2023 was about $134.75 million, down from $399.91 million in 2022.
The report stated:
“Across the telecoms market, the number of active subscribers grew from 222, 571,568 subscriptions in 2022 to 224,713, 710 active voice subscriptions as of December 2023, representing an increase of 2.14 million subscriptions and 0.96 per cent growth in active subscriptions year-on-year.”
The rise in the number of subscribers for telecom operators was due to customer loyalty, promotions, efforts to attract new users, and competitive products offered by all networks.
The growth in subscriptions was also driven by factors such as higher data usage, more subscribers, and significant investments in infrastructure by the operators.
The report added:
“The increase in subscriber base is attributed to high volumes of subscriber activation and reactivation drive of efficient customer retention management strategies and an increase in new subscriber additions within the period under review.”
NCC addresses data depletion complaints
In related news, Legit.ng shared that the NCC denied claims about mobile data running out quickly across Nigeria.
This response came after users complained that telecom companies had reduced the value of their data plans.
The NCC explained that a review done in the third quarter of 2024 found no proof to back these claims.
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Source: Legit.ng
