Connect with us

Telecom

MTN Nigeria Reports N385Bn Revenue for Q1 2021

Published

on

Kindly share this post

MTN Nigeria Communications Plc (MTN Nigeria) has announced its unaudited results for the quarter ended 31 March 2021, showing service revenue up by 17.2 per cent to N385.2 billion.

MTN Nigeria Reports N385Bn Revenue for Q1 2021

Karl Toriola, Chief Executive Officer, MTN Nigeria

The result also showed that earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 19.1 per cent to N204.5 billion

Karl Toriola, CEO, MTN Nigeria, said “We made good progress in the first quarter of 2021 despite the continued impact of the COVID-19 pandemic. We continue to prioritise the safeguards put in place to protect the health and well-being of our people, customers and stakeholders and to control the spread of the virus while ensuring network resilience and efficiency.

As part of our Y’ello Hope initiatives, we continue to support Government’s efforts in combatting the COVID-19 pandemic. We supported the most vulnerable in our communities, providing them with free-to-access services (including SMS and data) as well as essential medical supplies (tests and personal protective equipment).

We continue to support the Coalition Against COVID-19 (CACOVID) that has driven multiple initiatives, such as building isolation centres across the country. MTN Nigeria also paid taxes early in support of Government’s ongoing efforts. In addition, our REVV support programme for Micro, Small and Medium Enterprises (MSME) helps them navigate the new digital reality” Toriola stated.

Operationally, service revenue in Q1 grew by 17.2% YoY, in line with our medium-term target, supported by growth of 42.6% and 8.0% in data and voice revenue respectively.

He said that “This was achieved despite the impact of the pandemic and a decline in our subscriber base due to the effects of customer churn and the restrictions on new SIM sales and activations arising from changes in SIM registration regulations. We continue to collaborate with the Nigerian Communications Commission (NCC) and the Nigerian Identity Management Commission (NIMC) to update subscriber records with the National Identity Number (NIN).

Thus far, more than 35 million subscribers have submitted their NINs as at 30 April 2021, representing approximately 50% of our subscriber base and 63% of service revenue. We are also actively supporting the Government’s NIN enrolment programme, with 182 points of enrolment active across the country. We are working with NIMC to increase the enrolment centres to provide an access point for as many Nigerian as possible.

Impacted by the reduction in the overall subscriber base in Q1, active data subscribers declined marginally by 71,000 to 32.5 million. However, we recorded an 86.7% increase in data traffic and a 48.5% increase in usage (MB per user) from the existing base.

The improvement in data services was supported by the completion of our acquisition and activation of an additional 800MHz spectrum, enabling us to further increase traffic by 10% and enhance throughput by 79%.

Digital revenue grew by 101.0% and fintech revenue by 28.5% as customers continued to adopt more digital products and services, a trend accelerated by the pandemic. As at the end of March 2021, we had 449,100 registered MoMo agents and 4.6 million fintech customers.

Our ability to drive service revenue growth while managing the growth in expenses resulted in an acceleration in EBITDA growth to 19.1% and EBITDA margin expansion of 0.9pp to 53.1% YoY. This enabled profit before tax (PBT) and profit after tax (PAT) growth of 33.9% and 42.5% respectively.”

Voice revenue grew by 8.0%, supported by an 8.7% increase in traffic and our customer value management initiatives. The impact on voice revenue of the industry-wide suspension of new SIM registration in mid-December was partly offset by increased usage by active SIMs in our base and migration to a higher quality of experience.

Data revenue maintained the positive momentum from Q4 2020, rising by 42.6% YoY. This was led by increased usage and traffic, supported by 4G penetration and increased network capacity following the acquisition and activation of an additional 800MHz spectrum in March 2021. In line with our 4G acceleration, the 4G network now covers 61.8% of the population, up from 60.1% in December 2020. We added approximately 1.2 million new smartphones to the network, bringing smartphone penetration to 47.5% of our base, up from 45.9% in 2020.

Fintech revenue rose by 28.5%, driven by increased adoption of Xtratime and our core fintech services. We continue to expand our MoMo agent network and broaden our service offerings to include assisted withdrawal irrespective of the bank where the account is domiciled. Our registered MoMo agents increased by 54,000 to 449,146. The volume of transactions processed was over 24 million in the quarter, up more than four times YoY, from an active base of 4.6 million subscribers.

Our digital business continued to gain traction with the uptake of our products and services and the structural turnaround in the business. As a result, digital revenue rose by 101.0%, supported by our rich media and value-added services, while our active user base was largely flat at 2.8 million.

The enterprise business continued its recovery from the impacts of the COVID-19 lockdown as economic activity improved. However, service revenue for enterprise was largely flat YoY, mainly due to the non-recognition of USSD revenue in Q1. Normalised growth (excluding USSD revenue) was 2.6%. We continue to engage with the NCC, Central Bank of Nigeria (CBN) and deposit money banks (DMBs) to conclude the operational modalities for the new pricing framework that has been agreed upon for USSD services. The mechanism for and timing of the recovery of the industry-wide outstanding debts that exist for USSD services provided to the DMBs form part of this process. As at the end of Q1, N40.3 billion was due to MTN Nigeria. In the meantime, we continue to account for USSD revenue on a cash basis.

Expenses rose by 14.8%, mainly driven by a 19.2% increase in operating expenses arising from an accelerated site rollout and the effects of Naira depreciation on lease rental costs. The overall increase in expenses was partly mitigated by the comparatively moderate growth of 7.8% in cost of sales following the suspension of new SIM sales and activations. As a result, EBITDA rose by 19.1%, supported by revenue growth, with the EBITDA margin expanding by 0.9pp to 53.1%.

Capital expenditure in the quarter was N89.9 billion, up 19.3% mainly due to site rollouts, while free cash flow increased by 18.9% to N114.7 billion. Our core capex excluding right of use assets was up 27.8% to N31.6 billion. Depreciation and amortisation rose by 16.8% due to the impacts of Naira depreciation and a 2.5pp increase in value added tax in February 2020. We recorded a 10.5pp reduction in our overall cost of funding, despite higher borrowings, leading to a 10.6% decline in net finance costs. This was enabled by a 95% reduction in the reference benchmark rate to 0.6%.  Overall, we recorded a PBT growth of 33.9%, while PAT rose by 42.5% due to the release of an overprovision in deferred tax in the prior year.

Outlook

Our 2021 priorities remain unchanged, with a clear focus on sustaining double-digit revenue growth, driving 4G network expansion and positioning our fintech business for accelerated growth in order to unlock its full value. The acquisition of additional 800MHz spectrum positions us to deliver improved service speeds to Nigerians in support of the Government’s broadband initiative.

We will continue to sustain our expense efficiency programme to strengthen our financial position and support margins. We remain in dialogue with the DMBs on a pricing option for airtime sales commission while diversifying our airtime recharge channels to offer our subscribers more options to purchase airtime and stay connected.

We will pursue stronger and deeper stakeholder relationship and enhanced shared value across our stakeholder ecosystem while ensuring that our activities align with the Government’s development agenda. Environmental, social and governance (ESG) principles remain at the core of everything we do, with a focus on aligning our priorities to drive eco-responsibility, sustainable society, sound governance and economic value for all in Nigeria.

Following the commencement of SIM sales and activations, the initial run-rate of additions may be slower than usual due to new process requirements, system limitations and reduction of qualified locations for SIM registration. While this may impact the rate of additions in the short term, we are optimistic that the current processes underway will entrench a more robust and sustainable registration process as we reaccelerate subscriber growth over the medium term.

As the economy continues its steady recovery from the effects of the COVID-19 pandemic that impacted the business in 2020, we anticipate that the base effects will partly influence our commercial and financial trends in the remainder of the year. Although the availability of foreign exchange remains a constraint, we strive to minimise its impact on the business. Finally, we will continue to manage and invest in the resilience of our business and networks as we monitor the longer-term economic potential impacts of the pandemic.

 

 


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Telecom

Airtel Nigeria Launches Web Data Calculator to Give Customers Greater Visibility into Data Usage

Published

on

Kindly share this post

Airtel Nigeria has launched the Airtel Web Data Calculator, a new digital tool designed to help customers estimate and better understand their internet data consumption based on real-life usage patterns.

The launch comes amid a broader industry effort to improve transparency around data consumption and strengthen customer confidence in mobile broadband services.

It also aligns with ongoing collaboration between telecommunications operators and the Nigerian Communications Commission (NCC) to address customer concerns about data depletion and improve quality of service across the sector.

Recent industry initiatives have included customer education campaigns, daily usage notifications, billing audits, customer engagement forums, and the development of new tools that provide greater visibility into how data is consumed.

Available through Airtel’s website, the calculator enables customers to estimate data usage across common digital activities such as video streaming, social media engagement, voice and video calls, and everyday web browsing. By translating online behaviour into understandable data estimates, the tool empowers customers to make more informed decisions about their data plans and digital habits.

Speaking on the launch, Oladokun Oye, Customer Experience Director, Airtel Nigeria, said the initiative reflects Airtel’s commitment to customer empowerment and service transparency.

“As Nigerians become increasingly dependent on digital services for work, education, entertainment and communication, it is important that customers have clear visibility into how their data is consumed. The Airtel Web Data Calculator was developed to help our customers understand their usage patterns better, make informed choices, and enjoy greater confidence in their digital experience,” he said.

Oye added that customer concerns around data depletion have remained a recurring topic across the telecommunications industry, making transparency a critical component of customer experience.

“We believe that trust grows when customers have access to clear information. This tool is another step in our ongoing efforts to simplify the customer experience, provide greater clarity around data consumption, and support informed decision-making,” he said.

The launch follows a period of intensified engagement between telecom operators, regulators and consumers on data usage awareness. The NCC has consistently emphasized that many instances of perceived rapid data depletion are linked to factors such as high-definition video streaming, automatic application updates, cloud synchronization, background app activity and evolving smartphone capabilities. The regulator has encouraged operators to improve customer education and develop tools that help subscribers better understand their consumption patterns.

Industry data underscores the importance of such initiatives. Nigeria recorded more than 13 million terabytes of internet consumption in 2025, reflecting the country’s accelerating digital transformation and growing dependence on mobile broadband services.

Commenting on the significance of the launch, Dinesh Balsingh, Chief Executive Officer, Airtel Nigeria, said the company remains focused on building a network and customer experience ecosystem anchored on trust, transparency and continuous improvement.

“The future of telecommunications will be defined not only by network investments but also by how effectively operators help customers understand and manage their digital lives. The Airtel Web Data Calculator represents a practical innovation that places more information and control directly in the hands of our customers.”

He noted that Airtel continues to invest heavily in network modernization, customer experience initiatives and digital tools that improve service quality while making telecommunications services easier to understand and use.

“We welcome the industry’s collective focus on transparency and commend the NCC’s continued collaboration with operators to strengthen consumer confidence. As data becomes increasingly central to everyday life, Airtel will continue to develop solutions that make connectivity more accessible, transparent and rewarding for every customer.”

The launch also builds on Airtel Nigeria’s recent customer engagement initiatives, including forums dedicated to helping subscribers better understand data usage, value optimization and service quality. These engagements have brought together customers, regulators and Airtel executives to foster greater awareness and dialogue around digital consumption.

The Airtel Web Data Calculator is now available to customers nationwide and can be accessed via Airtel Nigeria’s website.

 


Kindly share this post
Continue Reading

Telecom

NCC Board Reviews Telecom Sector, Notes Progress in Network Expansion, Consumer Compensation

Published

on

Kindly share this post

The Board of the Nigerian Communications Commission (NCC) has commended telecommunications operators for ongoing investments aimed at improving network coverage, capacity and quality of service across the country.

NCC Board Reviews Telecom Sector, Notes Progress in Network Expansion, Consumer Compensation

NCC

This was contained in a communiqué issued at the end of the Commission’s 109th Board Meeting held on May 25 in Abuja.

According to the communiqué, Mobile Network Operators (MNOs) have planned the deployment of more than 12,000 additional coverage and capacity sites nationwide, with over 5,000 already completed, representing more than 40 per cent of the target.

The Board also noted that fibre connectivity had been extended to more than 700 sites to improve network resilience, backhaul capacity and service reliability.

It added that co-location and infrastructure sharing licensees had upgraded equipment across more than 2,000 Base Transceiver Stations (BTS) to support network expansion and compliance with quality-of-service obligations.

The Board reviewed the implementation of the Commission’s directive requiring operators to compensate subscribers affected by poor service quality in areas where prescribed standards were not met.

It noted that full compliance by operators had resulted in compensation being offered to more than 75 million affected subscribers.

The Board said efforts were ongoing to independently verify operators’ claims and ensure that all eligible subscribers received the compensation due to them.

However, it expressed concern that tower infrastructure providers had only partially complied with directives requiring the reinvestment of regulatory fines into infrastructure upgrades through escrow accounts.

On broadband development, the Board noted rising data consumption across the country but observed that growth remained constrained by infrastructure limitations, reliance on mobile internet and duplication of assets.

It welcomed the growth in Fibre-to-the-Home (FTTH) subscriptions, which rose from 84,141 in the fourth quarter of 2025 to 210,065 connections as of the first quarter of 2026.

According to the Board, expanding fixed broadband infrastructure will help reduce pressure on mobile networks, improve service quality and provide consumers with more connectivity options.

The Board also noted that the Commission was reviewing the telecommunications market structure to reflect current realities in both the wholesale and retail segments of the industry.

It reaffirmed that broader access to wholesale backbone fibre and expanded metropolitan fibre networks would help lower connectivity costs, improve network resilience and support the Federal Government’s digital transformation agenda.

The Board further identified infrastructure vandalism as a major challenge affecting industry growth despite ongoing efforts by security agencies to protect telecommunications facilities designated as Critical National Information Infrastructure (CNII).

It called for greater collaboration among stakeholders and disclosed that the Commission was exploring the feasibility of establishing a Communications Industry Security Trust Fund to strengthen infrastructure protection.

The Board also reviewed ongoing engagements with industry players on the development of a framework for zero-rating educational platforms and content to promote digital inclusion and improve educational outcomes.

In addition, the Board approved the appointment of Princess Oforitsenere Emiko, a Non-Executive Commissioner of the NCC, as Interim Chairman of the Governing Board of the Digital Bridge Institute (DBI).

It also approved the appointments of Engr. Abraham Oshadami, Executive Commissioner, Technical Services, and Ms. Rimini Makama, Executive Commissioner, Stakeholder Management, as interim members of the DBI Governing Board.

The Board reiterated the Commission’s commitment to fostering a sustainable and inclusive communications sector through improved quality of service, network resilience, consumer protection, transparency, fair competition and market discipline.


Kindly share this post
Continue Reading

Telecom

FG’s $10m Hello.cv Deal Sparks Outrage as Experts Question Snub of .ng Domain

Published

on

Kindly share this post

Stakeholders in Nigeria’s Information and Communications Technology (ICT) sector have expressed concerns over the inclusion of a foreign country code top-level domain (ccTLD) in a recent partnership under the Federal Government’s 3 Million Technical Talent (3MTT) programme.

FG's $10m Hello.cv Deal Sparks Outrage as Experts Question Snub of .ng Domain

The concerns followed the announcement by the Federal Ministry of Communications, Innovation and Digital Economy (FMCIDE) of a 10 million-dollar partnership with Hello.cv, a platform associated with Cape Verde’s “.cv” country code domain.

Under the agreement, 20,000 beneficiaries of the 3MTT programme will receive access to Hello.cv’s profile package, which includes a personal .cv domain, an artificial intelligence-powered job search agent and professional CV writing services.

Some industry stakeholders argue that the arrangement appears inconsistent with the Federal Government’s “Nigeria First Policy”, which encourages Ministries, Departments and Agencies (MDAs) to prioritise local products and services.

The policy, approved by the Federal Executive Council in May 2025, seeks to reduce dependence on foreign goods and services, strengthen domestic industries and create jobs.

Speaking on the development, Chief Executive Officer of DNS Africa Media and Communications, Dr. Adebunmi Akinbo, said the use of a foreign domain for Nigerian trainees raised questions about data protection and digital sovereignty.

According to him, the country’s indigenous domain, .ng, managed by the Nigeria Internet Registration Association, is capable of accommodating the beneficiaries and should have been prioritised.

“If branding is important to the company, there are alternatives such as integrating the service within the .ng ecosystem. The focus should remain on promoting Nigeria’s digital identity and protecting citizens’ data,” he said.

Akinbo also expressed concerns about the storage and management of data generated through the platform, noting that government agencies should ensure that local digital assets remain at the forefront of national digital development efforts.

Also commenting, Emmanuel Amos, Chief Executive Officer of Programos and Innovationbed-AI Academy, said government institutions needed to demonstrate consistency in implementing policies designed to strengthen local technology ecosystems.

According to him, Nigeria must develop the institutional commitment required to support indigenous technology solutions and maximise value from local innovation.

The stakeholders noted that while the training partnership itself was commendable, the inclusion of a foreign domain component had generated questions about compliance with the spirit of the Nigeria First Policy.

Ugonma Egwuatu, an ICT and data protection expert at ECAM Global Services, called for greater clarity regarding data governance arrangements under the partnership.

She said agencies responsible for data protection should be satisfied that adequate safeguards were in place for the personal information of programme beneficiaries.

“We are dealing with the data of about 20,000 individuals. There should be clear explanations regarding how the data will be managed, protected and utilised,” she said.

Egwuatu added that transparency regarding data handling processes and any third-party arrangements would help address concerns among stakeholders.

The partnership is part of ongoing efforts by the ministry to equip young Nigerians with digital skills and improve their access to employment opportunities in the global technology ecosystem.

As of the time of filing this report, the ministry had not publicly responded to the concerns raised by stakeholders regarding the domain component of the partnership.


Kindly share this post
Continue Reading

Trending