The financial performance of Nigerian telecommunications companies has taken a significant hit, as the average revenue per user (ARPU) dropped by 40.87 per cent to $1.85 in Q3 2024, compared to $3.12 in the same period last year.
This decline highlights the adverse effects of the weakened naira on the industry, as rising exchange rates and inflation continue to squeeze telco earnings.
MTN Nigeria, once the top performer in the MTN Group with a Q1 2023 ARPU of $5.03, saw its ARPU fall to $2.09 in Q3 2024. Airtel Nigeria also experienced a sharp drop, moving from a $3 ARPU in 2023 to just $1.60 in the third quarter of 2024.
These declines have affected both companies’ revenue growth, with MTN’s service revenue increasing by 33.6 percent in naira, but suffering from a sharp decline when converted to dollars, while Airtel Nigeria reported a 46.87 percent drop in revenue to $755 million.
The weakening naira, exacerbated by the Central Bank of Nigeria’s unification of the foreign…
Source: Leadership Newspaper
