Nigeria – mobile services

Nigeria is Africa’s largest economy – and presents one of our biggest opportunities to transform lives and grow our business. With a young, digitally native population (the median age is 17.9, according to the World Bank), there is huge unmet demand for data. Out smartphone penetration is increasing – but at around 50%, still has far to go. And across the telecoms sector, internet usage surged past the one million terabyte mark for the first time in January 2025.

The launch of our home broadband (HBB) unlimited data offering is one example of us finding new ways to enhance customer experience but there are many others. The Airtel eShop helps customers manage their HBB devices, airtime and bundles while giving them access to our e-commerce offerings. One of the most impactful partnerships this financial year was Airtel Nigeria’s collaboration with Meta (Facebook) through the ongoing Facebook Monetisation Program, notably the launch of Zero-Rating With Pictures (ZORP) in August 2023. And the launch of our self-NIN portal in May 2024 is helping customers meet NIN (national identification number) requirements that previously saw many customers temporarily barred.

Our customers and our business have been through turbulence following recent devaluation and inflation. While the Nigerian naira has stabilised and the operating conditions for the telecoms sector have improved following government approval for tariff adjustments in Q4'25, we remain committed to cost optimisation to mitigate against rising input costs. This year that has included our ongoing work to service more customers digitally and greater use of solar power and energy efficiencies that reduce our network costs. At the same time, we’ve stayed focused on the people and communities around us. We continued to support our partnership with UNICEF and access to digital education, while in September 2024, we responded swiftly to severe flooding in Borno province with support from the business and volunteer employees to affected communities alongside rapid restoration of our network.

• Read more about our landmark partnership with UNICEF in the Airtel Africa Foundation

Revenue grew by 36.4% in constant currency, largely driven by continued strength in the demand for data services. In reported currency, revenues declined by 30.4% to $1,045m on account of the significant devaluation of the Nigerian naira. The constant currency revenue growth was driven by ARPU growth of 32.7%, while our customer base grew by 4.7% despite the KYC directives issued by the regulator resulting in the disconnection of some subscribers.

In January 2025, the NCC granted approvals for tariff adjustments of up to 50%. The tariff changes were implemented in Q4'25. In Q4’25, constant currency revenue growth accelerated to 39.8% from 34.1% in Q3’25, partially contributed by these tariff adjustments. Reported currency revenues grew by 15.5% year on year in Q4’25.

Voice revenue grew by 24.3% in constant currency, driven by voice ARPU growth of 20.9%.

Data revenue grew by 44.5% in constant currency as a result of both data customer and data ARPU growth of 6.3% and 32.1%, respectively. Data usage per customer increased by 33.4% to 8.4 GB per month (from 6.3 GB in the prior period), with smartphone penetration increasing 4.7% to reach 49.6%. Smartphone data usage per customer reached 11.1 GB per month compared to 9.0 GB per month in the prior period.

Underlying EBITDA of $522m declined by 35.6% in reported currency but increased by 26.7% in constant currency. The underlying EBITDA margin declined by 402 basis points to 50%, although the prior year had a one-time opex benefit of $7m in Q3’24. Adjusting for this one-time benefit in the prior year, underlying EBITDA margins declined by 355 basis points, reflecting continued inflationary pressures across the business, particularly, from an approximate 45% increase in diesel prices. Q4’25 underlying EBITDA margins increased from 48.8% in Q3’25 to 52.8% in Q4’25 reflecting the strong revenue growth in the quarter, partially contributed by the tariff adjustments.

Operating free cash flow was $354m, up by 92.2% in constant currency, due to underlying EBITDA growth and lower capex in current period. In reported currency, operating free cash flow declined by 36.6% due to lower reported currency underlying EBITDA following the significant Nigerian naira devaluation.

We operate in an evolving legal and regulatory landscape. Changes in Nigeria this year include:

Know your customer (KYC)

In March 2024, the Nigerian Communications Commission (NCC) required full barring of fraudulently acquired National Identity Numbers (NINs) used for SIM registration across all mobile network operators (MNOs), with a final compliance date of 31 July 2024. In November 2024, the NCC limited individuals to four SIMs per NIN. The NCC also mandated that only one SIM could be registered via a third-party agent with further registrations needed at operator premises. This took effect on 31 March 2025. Airtel Nigeria has fully complied with the directives issued. Since, Airtel has proceeded to implement these directives and with a view of mitigating against fraudulent SIM registration, proposed the implementation of Strategic Partner Stores in thirty six (36) states. On 10 April 2025, the NCC approved 3,117 devices for immediate deployment in thirty-two States (32) and FCT. Approval for the remaining four (4) states, pends a thorough NCC investigation into the root cause of irregular/fraudulent SIM registration activities. Airtel being in the process of finalizing the assignment of the approved devices to the Strategic Outlets at the State level, has requested an extension of the compliance deadline.

Licences

On 1 July 2024, Airtel Telesonic obtained the sales and installation of a terminal licence and a internet service provider licence for a duration of five years each. Additionally, Airtel obtained the national long distance licence for a duration of 20 years.

In December 2024, Airtel Telesonic was issued with an international data access services licence dated 1 November 2024, for durations of ten years.

Tariff adjustments

In January 2025, the NCC granted approval for tariff adjustments requested by the industry in response to prevailing market conditions. The adjustment, capped at a maximum of 50% of current tariffs, supports the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity. The NCC reaffirmed its dedication to fostering a resilient, innovative and inclusive telecoms sector. The NCC’s actions were also designed to ensure the long-term sustainability of the industry, support local vendors and suppliers and promote the overall growth of  Nigeria’s digital economy.