Nigeria's telecommunications industry has experienced significant growth, driven by sustained expansion in traditional mobile subscriptions. The country's mobile subscriptions rose to 194.9 million, up from 192 million previously, according to data published by the Nigerian Communications Commission (NCC). This growth has reinforced the central role of mobile connectivity in Nigeria's increasingly digital economy. The NCC's data also showed that active subscriptions increased by 1.5 percent month-on-month.
The country's teledensity, which measures active connections relative to population, climbed to 90 percent, up from 88.7 percent. This growth in teledensity provides further evidence of the expanding reach of telecommunications services in Nigeria. However, it does not necessarily mean that 90 percent of Nigerians have unique access to a telephone connection, as individuals may hold multiple SIM cards. The sustained increase in active connections reflects the continuing importance of mobile networks as the primary gateway to digital services for millions of Nigerians.
MTN Nigeria, the largest operator in the country's telecommunications market, recorded the biggest increase in subscribers, crossing the 100 million-customer threshold for the first time. The company's subscriber base increased by about 2.2 million customers month-on-month to 100.9 million, taking its market share to approximately 51.8 percent. This growth consolidates MTN Nigeria's position as the largest operator in the country's fiercely competitive telecommunications market.
Airtel Nigeria, the second-largest operator, also sustained its growth trajectory, adding subscribers during the month to reach 66.8 million. This represents a 1.0 percent month-on-month increase, with the company retaining approximately 34.3 percent of the market. Meanwhile, T2, formerly known as 9mobile, recorded one of the strongest percentage increases among the major operators, with its subscriber base expanding by 2.1 percent month-on-month to 3.6 million.
Despite the growth in subscribers, T2's market share remained relatively small at 1.9 percent. Globacom was the exception to the broad-based growth recorded among the major operators, experiencing subscriber attrition during the month. The crossing of the 100 million subscriber mark by MTN Nigeria is particularly significant for the telecommunications industry, given the size of Nigeria's mobile market and the intensity of competition among operators.
The growth in subscriber numbers is occurring alongside an expanding dependence on mobile connectivity for banking, commerce, education, entertainment, social interaction, and other digital services. As more Nigerians move activities online, telecommunications operators are being forced to increase network capacity and improve the quality and reliability of services. Analysts expect the expansion in subscriber numbers to continue, particularly as mobile operators increase investment in network infrastructure.
Industry operators are facing higher costs associated with energy, equipment, maintenance, foreign exchange, and other network operating expenses. Against this backdrop, the pricing environment has become increasingly important to the ability of telecom companies to sustain investment. Operators have argued that tariffs need to better reflect prevailing operating costs if they are to maintain and expand infrastructure while improving service quality.
Key points
- MTN Nigeria's subscriber base increased to 100.9 million.
- Nigeria's teledensity climbed to 90 percent.
- Mobile subscriptions in Nigeria rose to 194.9 million.
