Airtel Africa latest financial report for the period ended December 2024 reveals significant losses in Nigeria, its largest market. Despite an overall increase in user base and data consumption, currency devaluation has severely impacted its Nigerian revenue. Meanwhile, the company saw revenue growth in East and Francophone Africa.
Nigeria: A Major Revenue Drop Despite Growth in Users
Nigeria, being Airtel Africa’s largest market, experienced a dramatic 40.3% revenue decline, dropping from $1.23 billion in 2023 to $738 million.
Key Figures:
🔻 Revenue Decline – $1.23 billion → $738 million (40.3% drop)
📈 User Growth – 50.5 million → 52.1 million (8.2% increase)
📊 Data Usage Growth – 6.2GB → 8.2GB per user per month (37.2% increase)
What Caused the Decline?
Airtel Africa attributes the revenue slump to the sharp devaluation of the Nigerian naira, stating that the currency fell from NGN/USD 677 to NGN/USD 1,532 in the reporting period.
East and Francophone Africa: Stronger Performance
While Nigeria struggled, Airtel Africa experienced growth in East and Francophone Africa, showing resilience in other markets despite currency fluctuations.
East Africa’s Performance
✅ Revenue Increase – $1.22 billion → $1.367 billion (+$140 million)
✅ Resilience Amid Devaluation – Despite currency devaluation in Malawi and Zambia, revenues grew.
Francophone Africa’s Performance
✅ Revenue Growth – $912 million → $968 million (+6.1%)
Mobile Services Revenue Decline
Across all markets, total mobile services revenue dropped by 8.8%, falling from $3.37 billion to $3.07 billion.
Data: Airtel Africa’s Leading Revenue Source
Across all regions, data remains the largest revenue contributor. However, revenue from data services saw contrasting trends across different markets.
SEE ALSO: Dinesh Balsingh Becomes Airtel Nigeria’s New MD/CEO
📉 Nigeria’s Data Revenue Decline – $539 million → $344 million (-34%)
📈 East Africa’s Data Revenue Growth – +19.4%
📈 Francophone Africa’s Data Revenue Growth – +19.5%
With Nigeria being the largest contributor to Airtel Africa’s revenue, the overall operating profit from mobile services dropped by 23.8%, going from $976 million to $744 million.
Similar Trends in the Telecom Industry
Airtel Africa is not alone in facing financial challenges in Nigeria. MTN Nigeria, another major telecom operator, reported a ₦137 billion after-tax loss in 2023 and ₦656.4 billion in net foreign exchange losses.
Can a 50% Tariff Increase Help Nigerian Telcos?
The Nigerian Communications Commission (NCC) has approved a 50% tariff increase, aimed at helping telcos mitigate the impact of currency devaluation.
Airtel Africa supports this move, calling it “a balanced approach to ensuring the sustainability of the telecommunications sector while safeguarding the interests of consumers.”
However, industry experts caution that this may not be enough, urging telcos to explore alternative revenue streams to offset their losses.
Conclusion: The Road Ahead for Airtel Africa
Airtel Africa faces significant challenges in Nigeria, but growth in East and Francophone Africa highlights the company’s ability to adapt in a volatile market.
Key Takeaways:
✅ Nigeria’s devaluation crisis remains a major concern
✅ User base and data consumption continue to grow
✅ Revenue gains in East and Francophone Africa offer hope
✅ Tariff hikes may help, but additional strategies are needed
With Nigeria being a critical market for Airtel Africa, the company’s ability to navigate economic instability and innovate revenue models will determine its future success.
👉 Do you think the 50% tariff increase will help telcos recover? Share your thoughts in the comments!
