MTN Nigeria, the leading telecommunications provider in the country, has reported a remarkable 53% year-on-year increase in data revenue for the first quarter of 2024. This surge is attributed to the growing internet usage and the accelerated adoption of 5G technology.
According to financial data released by MTN, the data revenue segment soared to N349 billion in Q1 2024, compared to N227 billion recorded in the same period in 2023. Concurrently, the voice revenue segment experienced a modest growth of 14.1%, reaching N267 billion from N234 billion in Q1 2023.
The impressive rise in data revenue is linked to an 8.06% expansion in active data subscribers, totaling 44.5 million, with an additional 78,000 active users. MTN emphasized that its 4G network now covers 81.6% of the population, while 5G adoption has reached 12.4%. Smartphone penetration stands at 55.2%, with average data usage per user climbing by 28.5% to 10.1GB.
Notably, 4G accounted for 81.9% of MTN’s total traffic, with 5G contributing 6.4%. Despite a reported decline of 2 million active subscribers in Q1 due to the Nigerian Communications SIM-NIN directive, the total subscriber base expanded by 1.3% to 77.7 million.
Karl Toriola, CEO of MTN, acknowledged the impact of regulatory directives on the company’s user base across all key business units. He stated, “During the quarter, we also continued to manage the effects on our business of the industry-wide directive of the Nigerian Communications Commission (NCC) for a full barring of subscriber lines not linked to their National Identity Number (NIN) – the NIN-SIM directive.”
MTN reported a 5.1% increase in voice traffic and a substantial 40.6% surge in data traffic, underscoring the consistent growth in demand for data and voice services. This growth is supported by MTN’s ongoing investments in network quality and coverage expansion initiatives.
Moreover, MTN disclosed a 49.1% increase in capital expenditure spending, reaching N179.7 billion, with a notable portion allocated to network infrastructure enhancements. Toriola emphasized the importance of tariff adjustments to support sustained investment and industry sustainability, echoing calls for tariff increases amidst challenging operating conditions.
As Nigeria experiences a significant surge in internet data usage, fueled by the expansion of 4G and 5G subscriptions, MTN remains poised to capitalize on the growing demand for digital services while prioritizing investments to enhance network capabilities and customer experience.
