Airtel Nigeria generated ₦3,290 ($2.4) per customer across voice, data, and other services during the second quarter of 2026, according to a corporate filing by Airtel Africa released on Thursday.

The figure represents an increase in average revenue per user (ARPU) from ₦2,880 ($2.1) in the same period a year earlier. Airtel Nigeria, the country's second-largest telecom operator by customer base, reported a total subscriber base of 86.5 million as of Q2 2026, with data customers numbering 37.8 million. The ARPU gains come after the Nigerian Communications Commission (NCC) approved a 50% tariff adjustment in early 2025 — the first major hike in over a decade — which gave operators room to raise voice and data prices after years of unchanged rates amid double-digit inflation.

Total Revenue Reaches ₦689.87 Billion

Airtel Nigeria posted total revenue of ₦689.87 billion ($501 million) during the quarter, marking a 50.4% year-on-year increase in reported currency, up from ₦459 billion ($333 million) a year ago. The Nigerian operation accounted for 27.03% of the Airtel Africa group's total revenue across its 14 African markets, reinforcing Nigeria's position as the group's largest single market.

Data was the primary revenue driver, generating ₦361 billion ($263 million) — a 59.9% YoY increase in reported currency, compared to the $164 million reported a year earlier. The growth reflects continued rises in internet penetration and smartphone adoption, alongside increased time spent online by Nigerian users engaged in remote work, content creation, and social media activity. Nigeria's telecom sector remains effectively a duopoly between MTN Nigeria and Airtel Nigeria, which together serve the vast majority of the country's over 220 million mobile subscriptions.

Airtel Nigeria reported that smartphone penetration rose by 4.6% to reach 56.1%, while average smartphone data usage per customer climbed to 14.9 GB per month, up from 11.8 GB per month a year ago.

Voice and Other Revenue Streams

Revenue from mobile voice services increased by 42.6% in reported currency to ₦264 billion ($191 million), widening the gap between data and voice revenue. Mobile money revenue through SmartCash PSB contributed ₦6.8 billion ($5 million), up from ₦2.7 billion ($2 million) a year earlier.

Other revenue — comprising infrastructure sharing, airtime and data lending, value-added partnerships, and wholesale and carrier services — contributed ₦58 billion ($44 million) during the quarter.

Naira Appreciation Boosts Reported Figures

Airtel Nigeria attributed the surge in total revenue partly to the naira's positive performance in recent months. The Nigerian currency appreciated from a weighted average NGN/USD rate of 1,585 a year ago to NGN/USD 1,367 in Q2 2026. The naira's relative stabilization follows a period of sharp devaluation that began in 2023, when the Central Bank of Nigeria moved to unify its multiple exchange-rate windows — a reform that had previously inflated the dollar-reported financials of Nigerian telecom operators.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at $292 million, representing a 58.2% improvement in reported currency. The EBITDA margin expanded by 305 basis points to 58.8%, driven by strong revenue growth and continued benefits from the company's cost efficiency programme. However, Airtel Nigeria noted that rising energy costs have pressured its EBITDA margins. Energy remains a structural cost challenge for Nigerian telecom operators, who rely heavily on diesel-powered generators to keep base stations running amid persistent grid power shortages.

Mobile Money Remains Small Contributor

Despite nominal growth, SmartCash PSB's contribution to total revenue remained below 1% for the period. The service continues to face challenges in capturing share in Nigeria's competitive mobile money and fintech market, which is dominated by players such as Moniepoint, OPay, Kuda, and Palmpay, alongside MTN's MoMo PSB. Nigeria's fintech sector has attracted significant venture funding in recent years, and the central bank's issuance of Payment Service Bank licenses to telecom operators was intended to deepen financial inclusion among the country's large unbanked population — a goal that has proven slower to materialize for both Airtel and MTN.

By comparison, Airtel Money generated $297 million in revenue in East Africa and $102 million in Francophone Africa during the same quarter. Separately, Airtel Money processed $61.4 billion in Q2 transactions ahead of a planned IPO.

Group Performance Across African Markets

At the group level, Airtel Africa's revenue increased by 31% YoY to $1.85 billion, powered by data revenue of $750 million and voice revenue of $640 million. Total mobile money revenue reached $404 million, with other services contributing $129 million.

Profit after tax surged 27% YoY to $198 million, following group EBITDA of $928 million.

The group's customer base across its 14 African markets grew from 169.4 million to 189 million, with the data customer base approaching 90 million. Group ARPU stood at $3.3, up from $2.8 a year ago.

Regionally, beyond Nigeria's $501 million contribution, East Africa recorded total revenue of $854 million with a customer base of 86.5 million. Francophone Africa saw total revenue increase by 19.7% in reported currency to $492 million, with total users reaching 42.4 million.

Q1 2026 Context

In the first quarter of 2026, Airtel Africa reported $1.7 billion in revenue, representing a 22.3% increase in constant currency, driven by $705 million in data revenue and $613 million in voice revenue. Profit after tax for Q1 jumped 183.3% to $227 million, with the total customer base at 183.5 million.