A 50% increase in telecom tariffs has lifted MTN and Airtel’s earnings in Nigeria, sending their combined average revenue per user (ARPU) up 31.6% in the second quarter of 2025. The rise is helping unlock long-delayed network investments. However, it is also squeezing customers already facing inflation and a weakened naira.
Airtel’s ARPU climbed 23.5% year-on-year to $2.1, while revenue grew nearly 30% to $332 million. MTN performed even better, with ARPU jumping 37.9% to $3.02 and revenue surging almost 68% to ₦1.32 trillion ($860 million).
For years, revenues were flat despite rising subscriptions. Dollar returns shrank as the naira slid from ₦471/$ in June 2023 to ₦1,535/$ by August 2025. Both firms slashed capital spending, leaving customers with dropped calls and poor internet.
Now, higher tariffs are redefining the picture. Airtel’s ARPU in Nigeria is second only to its francophone Africa operations. MTN Nigeria still lags behind Ghana, where ARPU stands at $5.60, but the Nigerian unit boosted the Group’s revenue growth by over 23% in the first half of 2025.
“The approval of price adjustments in Nigeria… boosted MTN Nigeria and the Group’s service revenue expansion,” said Ralph Mupita, MTN Group CEO.
The tariff increase is spurring new investment. Airtel’s capex rose slightly to $39 million in Q2 2025, while MTN’s shot up to ₦363.25 billion ($236.7 million), a more than 26-fold jump. The Nigerian Communications Commission (NCC) says the approval restored cost-reflective pricing, unlocking over $1 billion in telecom investment this year.
But the gains come at a cost. Data prices rose to ₦431.25 per gigabyte, up from ₦287.50. “The hike has imposed untold hardship on many Nigerians,” said Adeolu Ogunbanjo, president of the National Association of Telecoms Subscribers.
NCC chief Aminu Maida said service quality will improve, but gradually, as upgrades take time and roll out in phases. For now, operators are better positioned financially, but subscribers are still waiting for the improvements they are paying more for.
