Airtel Africa says Nigeria has become its second-largest market by revenue earned per subscriber after strong growth linked to higher telecom tariffs and improving profitability.
The company’s latest financial results show Airtel Nigeria ARPU rose sharply during the financial year ending March 2026, reversing years of pressure caused by currency depreciation and rising operating costs.
Airtel Nigeria ARPU Records Strong Growth
According to Airtel Africa’s FY26 financial report, average revenue per user in Nigeria increased 41.18% year-on-year to $2.40 per subscriber.
ARPU is one of the telecom industry’s most closely watched performance indicators because it measures how much operators earn from each customer and whether revenues can sustain network investment and expansion.
The results placed Nigeria behind only Francophone Africa within Airtel Africa’s regional operations.
| Region | FY26 ARPU | Year-on-Year Growth |
|---|---|---|
| Francophone Africa | $3.40 | 6.25% |
| Nigeria | $2.40 | 41.18% |
| East Africa | $2.20 | 4.76% |
The figures reflect a major turnaround for Nigeria, where telecom operators had struggled for years with declining dollar revenues despite continued subscriber growth.
Telecom Tariff Increase Boosts Revenue
Industry analysts attribute much of the Airtel Nigeria ARPU growth to the 50% tariff adjustment approved in 2025.
The tariff increase allowed operators to raise prices for calls, data and other telecom services after years of pressure from inflation, currency weakness and infrastructure costs.
Nigeria’s currency depreciation had significantly weakened telecom earnings in dollar terms. The naira fell from around ₦471 per dollar in mid-2023 to more than ₦1,300 per dollar, sharply increasing the cost of imported telecom equipment and infrastructure.
The tariff increase has since helped restore profitability across Nigeria’s telecom sector.
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Airtel Nigeria Revenue Climbs Above $1.5 Billion
Airtel Nigeria reported strong financial growth during FY26.
Revenue rose 52.92% to approximately $1.59 billion, while operating profit increased 78.62%.
The company’s Nigerian subscriber base reached 58.3 million customers during the period.
Capital expenditure in Nigeria also rose 48.21% as the operator increased investment in network infrastructure and service expansion.
Industry observers say the higher investment levels indicate renewed confidence in the Nigerian telecom market following improved earnings conditions.
Data Services Drive Growth
Mobile data continued emerging as the largest growth engine within Airtel Nigeria’s business.
According to the company, data services accounted for 51.31% of total Nigerian revenue during FY26.
The trend reflects broader shifts across African telecom markets as customers increasingly spend on internet services, streaming, mobile banking and digital platforms rather than traditional voice calls and SMS.
Telecom operators across the continent are therefore focusing heavily on mobile internet infrastructure and smartphone adoption.
Mobile Money Still Weak in Nigeria
Despite Nigeria’s strong telecom revenue growth, Airtel Africa’s mobile money business remains relatively small in the country compared with other regions.
Nigeria had approximately 2.7 million mobile money users during FY26, far below East Africa’s 40.9 million users and Francophone Africa’s 10.5 million users.
Nigeria contributed less than 1% of Airtel Africa’s total mobile money revenue of $1.36 billion.
| Region | Mobile Money Revenue | Active Users |
|---|---|---|
| East Africa | $1.009 billion | 40.9 million |
| Francophone Africa | $337 million | 10.5 million |
| Nigeria | $9 million | 2.7 million |
Industry analysts say regulatory complexity and the dominance of traditional banking systems have slowed mobile money adoption in Nigeria compared with East African markets led by services such as M-PESA.
Airtel Targets Mobile Money Expansion
Airtel Africa says it plans to expand mobile money services in Nigeria through customer incentives, wider agent networks and savings products.
The company is also offering fixed savings interest rates of 15% as part of efforts to attract more users into Airtel Money services.
Analysts say Nigeria remains a major untapped market for mobile financial services due to its large population and rising smartphone penetration.
Airtel Africa Records Strong Overall Results
Across all 14 markets, Airtel Africa reported subscriber growth to 183.5 million customers.
Group revenue increased 29.47% to $6.42 billion, while profit after tax surged 147.87% during FY26.
The company said stronger industry conditions, operational execution and tariff adjustments in Nigeria contributed significantly to the improved results.
Nigeria’s Strategic Importance Grows
Nigeria’s rising contribution to Airtel Africa’s earnings highlights the growing importance of the country within the group’s long-term strategy.
With more than 220 million people, expanding internet adoption and increasing demand for digital services, Nigeria remains Africa’s largest telecom market by population.
Analysts expect competition between Airtel Nigeria and MTN Nigeria to intensify further as operators continue expanding 4G, 5G and mobile financial services.
Outlook for Airtel Nigeria ARPU
Industry observers expect Airtel Nigeria ARPU to remain under close watch as operators balance affordability concerns with the need for continued infrastructure investment.
Future performance will likely depend on currency stability, regulatory decisions, smartphone adoption and mobile internet growth across Nigeria’s digital economy.
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