Mobile Subscriptions in Nigeria Decline for the First Time in Two Years

How Nigeria’s Telecom Sector Faced a Setback in March 2023

Ilesanmi AdekanbiMay 19, 2023

2 minutes read

Nigeria’s telecommunications sector experienced a slowdown in March 2023 as the total number of mobile subscriptions dropped by 1.01 million to 225.82 million, according to the Nigerian Communications Commission (NCC). This represents a 0.45 percent decrease from the previous month and the first decline in growth since June 2021.

The NCC data showed that mobile subscriptions have been growing steadily for almost two years, reaching a peak of 226.84 million in February 2023.

However, the sector faced some challenges in March 2023 due to the high inflation rate, petrol and cash shortages, and exchange rate volatility that affected the economic activity and consumer spending.

Despite the decline in mobile subscriptions, the NCC reported that the sector still contributed 13.55 percent to the overall Gross Domestic Product (GDP) of Nigeria in the fourth quarter of 2022, up from 12.84 percent in the third quarter and 12.61 percent in the same period of 2021. This indicates that the telecommunications sector remains a key driver of Nigeria’s economy.

Among the four major telecom providers in Nigeria, MTN maintained its lead with 91.55 million mobile subscriptions, although it recorded a slight decrease from 91.71 million in February 2023. Globacom ranked second with 60.79 million, followed by Airtel with 60.33 million, and 9mobile with 13.14 million mobile subscriptions.

The NCC data also revealed that mobile Internet subscriptions grew to 156.98 million in March 2023, with broadband penetration rising to 53.50 percent. However, broadband subscriptions declined to 92.03 million from 92.34 million in February 2023.

The Chief Executive Officer of MTN Nigeria, Karl Toriola, attributed the decline in mobile subscriptions to the challenging operating environment in the first quarter of 2023.

He said that the global macroeconomic and geopolitical developments had an impact on energy, food, and general inflation, which were worsened by petrol and cash shortages in Nigeria.

He also said that the private sector contracted significantly in March 2023 due to the COVID-19 pandemic, resulting in a lower Purchasing Managers’ Index (PMI) of 42.3 points compared to 44.7 points in February 2023.

He added that inflation rose to a 17-year high of 22 percent in March 2023, while supply chains were affected by exchange rate fluctuations and foreign currency availability.

Toriola said that MTN Nigeria was still committed to delivering quality service and value to its customers despite the headwinds. He said that the company had invested heavily in network expansion and modernization to improve its coverage and capacity across Nigeria.