MTN Nigeria is making more money but earning less from each customer

MTN Nigeria has achieved record revenues in the first half of 2026, with a 25.9% increase in service revenue to ₦2.99 trillion ($2.25 billion), driven by an 8.9% growth in its subscriber base to 92.2 million. However, the average revenue per user (ARPU) has declined by 8.82% to $3.41, marking the first drop since the second quarter of 2025.

While the decrease in dollar ARPU could be attributed to currency fluctuations, the decline in naira ARPU indicates that the pressure is not solely exchange-rate related. The naira's value has remained relatively stable, suggesting that the pressure on ARPU is due to other factors. A key factor may be the influx of 7.5 million new subscribers in the first half of the year, many of whom are likely price-sensitive and may struggle to afford higher data costs amid double-digit inflation.

MTN's COO, Ayham Moussa, acknowledged that the company's operational strategy may shift between focusing on yield and acquisition depending on market conditions. As MTN's tariff increases begin to lose their impact, the company now depends on attracting more customers and encouraging existing ones to spend more on data to sustain revenue growth.