In March 2024, mobile network operators (MNOs) lamented revenue losses after widespread service disruptions caused by damage to critical fibre optic cables. This was not an isolated incident. Earlier, in 2023, MTN Nigeria experienced more than 6,000 cuts on its fibre network. In response, the company relocated 2,500 kilometres of vulnerable fibre lines between 2022 and 2023, incurring a staggering cost of over ₦11 billion—money that could have built 870 kilometres of new fibre infrastructure in underserved areas.
By August 2024, the CEO of Airtel Nigeria, Carl Cruz disclosed at an industry forum that the company had been experiencing an average of 1,000 fibre cuts monthly. These incidents have led to severe financial drain and avoidable revenue losses. Both MTN and Airtel, seen as the dominant players in Nigeria’s telecom sector, have faced setbacks so damaging that even their mobile switching centres (MSCs) and base transceiver stations (BTS) were affected, resulting in serious lapses in quality of service (QoS).
Despite efforts to address these challenges, many operators have struggled to meet the QoS thresholds set by the industry regulator, the Nigerian Communications Commission (NCC). While Globacom Limited and 9mobile, which are not publicly listed, have not disclosed the extent of their financial losses, it is evident they too have been affected.
All four MNOs have sustained immense losses, which have translated into poor service delivery. Subscribers across the country continue to groan under the weight of unreliable service, frequent data depletion and network unavailability—particularly in underserved regions. The operators, in many cases, appear helpless.
Vandalism remains a persistent threat, with miscreants damaging infrastructure with impunity. Compounding this are high-handed actions by some government officials who, armed with arbitrary legislation, impose questionable right-of-way (RoW) fees and taxes not recognised by law. The result is a telecom sector caught between two crushing forces: vandalism and overreach by certain public officials. In all of this, the subscribers remain the ultimate victims.
Subscribers, unable to influence either vandals or regulators, have become pawns in a vicious cycle where both state and non-state actors exploit operators under the guise of enforcing compliance or protecting public interest. Frequent harassment by vandals and alleged unscrupulous government officials, particularly at the state and local levels, have only deepened the crisis.
On top of these operational hurdles, high costs of doing business are choking the life out of telecom companies. Some have even lost millions of subscribers in just under two years, leading to sharp revenue declines.
For instance, between January and August 2024, Globacom Nigeria lost 42 million active subscribers, representing a 73 per cent drop in its customer base. Once the second-largest operator, Globacom slipped to third place, ceding market share due to this staggering decline. This is a sobering development, especially for a company that once redefined market competition.
By pioneering per-second billing in an industry then dominated by a ₦50-per-minute regime, Globacom forced competitors back to the drawing board. Then, in October 2004, it shook the market again by offering free subscriber identification modules (SIMs) when rivals were selling theirs for ₦2,000. According to industry analysts, these aggressive strategies—backed by massive marketing campaigns and celebrity endorsements—marked Globacom as a disruptive force despite its late market entry.
Meanwhile, MTN Nigeria reported a loss of ₦400 billion after tax in 2024. However, it appeared to turn the corner in March 2025, announcing a profit after tax of ₦133.7 billion for the first quarter, up from the ₦392.7 billion loss recorded in Q1 2024. Its revenue for Q1 2025 stood at ₦1.06 trillion, representing a 40.5 per cent increase from ₦752.96 billion in the same period the previous year. The company also invested ₦202.4 billion in network upgrades and expansion during the quarter, a 159 per cent year-on-year increase aimed at enhancing service quality and coverage.
Airtel Africa, however, reported a loss after tax of $89 million for the full year ending March 2024. This was largely due to foreign exchange (FX) volatility in Nigeria and Malawi. Airtel Nigeria’s revenue declined by 40.34% to $738 million, primarily due to the naira’s devaluation. Despite this, data consumption in Nigeria rose, with average usage per customer increasing by 37.2 per cent to 8.4 gigabytes per month. Airtel, with 56.6 million subscribers, remains the country’s second-largest operator.
To mitigate further FX-induced losses, both MTN and Airtel have taken steps to reduce their foreign exchange liabilities. MTN Nigeria cut its outstanding letters of credit obligations from $416.6 million at the end of December 2023 to just $20.8 million by year-end 2024. Airtel Africa repaid $739 million in foreign currency debt over the past year, significantly reducing its exposure to currency risks. Both companies believe that limiting their foreign currency liabilities is crucial to shoring up their financial stability.
Meanwhile, 9mobile is in dire straits. With over 10 million subscribers lost out of its 13 million base and a desperate search for a $3 billion loan to remain operational, the company is now in the telecom sector’s equivalent of an intensive care unit (ICU). It had initially overcome early challenges stemming from a $1 billion debt to Nigerian banks, thanks to interventions by the NCC and the Central Bank of Nigeria (CBN), which facilitated a takeover by new investors. Rebranded from Etisalat to 9mobile, the company made ambitious promises that have since turned out to be hollow. Now, languishing at the bottom of the market, it is barely hanging on.
Under the leadership of Obafemi Banigbe, 9mobile is currently seeking $3 billion in fresh investments to resuscitate its services, even as internal shareholder conflicts continue to hamper progress. Analysts note that the company is also facing pressure from competitors, particularly over its spectrum lease agreement with MTN. While the deal was framed as infrastructure sharing, it has become a source of contention.
To cushion these widespread financial losses, the Federal Government approved a 35 per cent tariff increase for telecom services in March 2025, down from the 100 per cent hike initially proposed by operators. Earlier, in January 2025, the NCC had approved a 50 per cent tariff adjustment to reflect current market realities. However, this was met with resistance from the Nigerian Labour Congress (NLC), which took its protest to the Office of the National Security Adviser (ONSA). Following a tripartite meeting involving ONSA, labour and telecom operators, the hike was pegged at 35 per cent.
Operators had argued that a 100 per cent hike was necessary to ensure industry sustainability, but consumer advocacy groups strongly opposed it, citing the risk of deepening the economic hardship of subscribers. Invoking Section 108 of the Nigerian Communications Act 2003, the NCC defended the 35 per cent tariff hike as a necessary response to inflation, currency devaluation and increased operational costs.
According to the commission, the adjustments remain within the bounds of the 2013 NCC Cost Study and will be evaluated on a case-by-case basis in line with its tariff review guidelines. These changes, it said, would be implemented under the NCC’s new 2024 Guidance on Tariff Simplification.
Still, questions linger: Will the new tariffs improve the sector’s dismal performance? Can QoS be meaningfully enhanced when subscribers’ purchasing power continues to decline and apathy sets in?
Most importantly, will the NCC take a harder look at the financial health of these operators, many of whom are operating under intense pressure in a fragile economic environment?
There are far more questions than answers. Only time will tell.
