According to their financial disclosures, market leaders MTN Nigeria and Airtel Nigeria generated about ₦2.4 trillion from data alone in the first six months of 2026, underscoring internet connectivity as a core engine of the digital economy.

Behind that headline figure is a broader structural shift. Alongside sustained data revenue growth, the Nigerian telecom sector’s performance was supported by foreign exchange stabilization, which helped reverse losses recorded in 2024 through the first quarter of 2025 into net profits.

Capital expenditure also featured prominently in the results. MTN and Airtel Nigeria redirected earnings toward network upgrades, new tower deployments, 5G rollout and fibre expansion as demand for high-speed internet continued to rise. That spending matters because it is the main way operators can translate rising data usage into better service, even if the effects are not immediate for users.

At the same time, challenges remained in telecom-led fintech. Airtel Nigeria continued to struggle with its mobile money operation, while MTN Nigeria’s fintech revenue declined after the temporary suspension of airtime and data lending during the second quarter.

Fibre cuts and vandalism also absorbed part of the operators’ investment as both companies devoted resources to repairs.

This article highlights five key takeaways from MTN and Airtel’s H1 2026 results and what they suggest about the current state of Nigeria’s telecom market.

1. Data has overtaken voice as the main revenue driver

The clearest theme in the period under review was the dominance of data revenue across both telecom giants. MTN Nigeria recorded ₦1.7 trillion in data revenue, while Airtel Nigeria posted ₦691 billion ($507 million). Together, those figures show data has decisively overtaken voice revenue.

By comparison, the two operators recorded ₦1.42 trillion from voice services.

Industry data reinforces the trend. In the first five months of 2026, Nigerians consumed roughly 7.168 billion gigabytes (GB), reflecting how central internet access has become to everyday communication, entertainment and business activity.

2. Network demand remains high despite user complaints

Even with rising usage, many Nigerians continue to express dissatisfaction with telecom service quality on social media, with frequent complaints about poor internet experience.

MTN and Airtel are pursuing similar goals through different strategies: bringing internet access closer to users through 5G-enabled services.

The red-branded operator is relying on tower upgrades, routers and potentially Starlink’s direct-to-cell innovation. The yellow-branded operator is pushing its FibreX strategy through Fixed Wireless Access (FWA 5G) and Fibre-to-the-Home (FTTH).

MTN is expanding terrestrial fibre and 5G capacity, while Airtel is combining 5G deployment with satellite partnerships to reach rural and semi-urban areas.

However, network quality remains uneven, and Nigeria’s digital divide is still pronounced.

5G coverage remains concentrated in Lagos, Abuja and Port Harcourt, while many other states lag behind. That means Nigeria’s nationwide coverage ambitions are unlikely to be achieved soon.

Also Read: Nigeria’s 5G coverage gap leaves millions of capable devices unconnected, even in its top three cities

3. Foreign exchange stability improved sector performance

The H1 numbers also reflect the impact of foreign exchange conditions on the telecom sector.

Rather than appreciating below ₦1,000/$, as some analysts had predicted, the naira experienced relative stability for the first time in a while. Average FX for the period was approximately ₦1,378.59/$, compared with ₦1,549.83/$ in H1 2025.

That came after two years of severe FX losses that had eroded profits across the industry.

In their separate financial statements, both MTN and Airtel attributed their positive revenue turnaround to the more stable exchange rate, which made planning easier and reduced unexpected losses.

4. Fintech remains a weak spot for both operators

While core connectivity business boomed, telecom-linked fintech models experienced short-term disruptions from regulation and credit-service changes.

Airtel Nigeria’s mobile money business remains a familiar challenge. With just ₦10.9 billion in H1 2026, Airtel Money accounted for less than 1% of total earnings, showing that the business still has a long way to go in Nigeria.

MTN Nigeria’s fintech business also came under pressure. Fintech revenue fell 7.2% to ₦77.17 billion in H1 2026, with the second quarter affected by the temporary suspension of airtime and data credit services in April.

Even though MoMo wallets nearly doubled to 5 million users, a rise of about 32%, the service did not translate that growth into stronger financial results.

That is a notable development for a business that is expected to be partly separated from the core connectivity operation. Under the plan, MTN Nigeria will hold 40% ownership, while the group will own 60%.

The move is intended to separate connectivity from fintech, but whether the unit can stand independently remains to be seen.

Also Read: MTN Nigeria’s ₦3T revenue hides a fintech business still finding its footing

5. Infrastructure spending and vandalism remain major concerns

As seen during the 50% telecom tariff increase in H1 2025, MTN and Airtel have continued to raise spending on infrastructure rollout and network upgrades.

In H1 2026, MTN reportedly spent ₦620.5 billion on capex, while Airtel said it spent ₦287.6 billion ($211 million) on 4G and 5G tower deployment and other necessary investments.

A portion of that spending also went toward repairing infrastructure damaged by fibre cuts, theft and vandalism.

In the first three months of the year, Nigerian telecom operators recorded 5,934 cases, or nearly 500 cases per week.

The Critical National Information Infrastructure (CNII) framework, which is meant to guide action against vandals, has so far had limited impact. Authorities have reportedly succeeded in sentencing fewer than 10 vandals to prison despite thousands of incidents.

Outlook

The first half of 2026 delivered strong earnings for MTN and Airtel Nigeria. But the results also show that the sector still faces unresolved problems, including uneven network quality, infrastructure damage and underperforming fintech operations.

For now, data revenue remains the dominant force shaping the financial books of both operators, and it is likely to continue setting the pace for the rest of the year.