Nigerian Telecoms Soar as MTN, Airtel ARPU Jumps 32% After Tariff Hike, Consumers Face Higher Costs
A significant 50% increase in telecom tariffs across Nigeria has dramatically reshaped the financial landscape for major operators like MTN and Airtel. This tariff adjustment fueled a substantial 31.6% surge in their combined average revenue per user (ARPU) during the second quarter of 2025. While these boosted earnings are now enabling long-overdue network investments in the West African nation, they simultaneously place an added financial strain on Nigerian consumers already contending with persistent inflation and a rapidly depreciating currency.
Revenue Surge and the Quest for Network Modernization
The impact of the tariff hike on individual operators has been considerable. Airtel Nigeria witnessed its ARPU climb by 23.53%, reaching $2.1 in Q2 2025 from $1.7 a year prior. This increase contributed to a robust 29.69% year-on-year rise in its revenue, totaling $332 million. MTN Nigeria experienced even more significant gains, with its ARPU soaring by 37.89% to $3.02 from $2.19. Consequently, MTN’s revenue surged by an impressive 67.88% to ₦1.32 trillion, equivalent to $859.83 million.
Average Revenue Per User (ARPU) is a critical metric for telecom companies, indicating the average income generated from each subscriber. It signifies whether operational costs can be adequately covered and if sufficient capital is available for essential infrastructure upgrades and network expansion. For several years, Nigeria’s telecom ARPU has faced immense pressure. Despite consistent subscriber growth, dollar-denominated revenues remained stagnant as the Nigerian Naira depreciated sharply, falling from ₦471 per US dollar in June 2023 to ₦1,534.93 per US dollar by August 20, 2025. This tariff-driven recovery, therefore, marks a crucial turning point for Nigeria’s largest telecom operators, providing the financial impetus needed for network modernization.
Ultimately, while the recent tariff adjustments have been instrumental in revitalizing the earnings of MTN and Airtel, enabling vital network investments and strengthening their financial health amidst economic challenges, the burden of these increased costs falls squarely on Nigerian consumers. As the telecom sector navigates its recovery, the delicate balance between operator profitability and consumer affordability remains a critical issue in the country’s economic landscape.
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