The number of people using mobile phones went up 1.1 per cent to 211.9 million between August and September, data published by the Nigerian Communications Commission (NCC) has disclosed.
Analysts at Afrinvest attributed the growth to support by a strong month-on-month (m/m) drive by MTN (+2.0 per cent), alongside Globacom (+0.9 per cent), Airtel (+0.1 per cent), and 9Mobile (+0.7 per cent).
Consequently, MTN expanded its GSM market share by 0.4ppts to 38.3 per cent while Airtel pared its share by 0.3ppts to 27.6 per cent. On the other hand, Globacom and 9Mobile maintained their respective shares of 28.0 per cent and 6.0 per cent. Furthermore, the NCC reported 152.2 million active internet subscriptions, representing a growth of 0.3 per cent and 8.8 per cent on a m/m and y/y basis respectively.
Similarly, Broadband penetration rose to 45.09 per cent in September, from 44.65 per cent previously.
In our view, the improvement in GSM and active internet subscription was in part, supported by increased digitisation of economic activities, and on the other the deployment of critical infrastructure to support operational efficiencies.
Noteworthy, the installation of 100,000 kilometers of terrestrial fibre optic in rural communities in the second quarter by MTN, aggressive promotional campaigns among the Telcos, and low-base effect from the comparable period of 2021, where we suspect activities were affected by the NIN-SIM linkage exercise. Importantly, the continuation of telecommuting and the population growth has remained important tailwinds for the sector. Not surprising, these improved activities rubbed off on Airtel and MTN latest quarterly earnings number as revenue grew by 18.5 per cent and 21.9 per cent year-on-year (y/y) to $1.3 billion and N506.0 billion, respectively.
Also, we consider the improvement in broadband penetration as positive, albeit slow-paced given the 70.0 per cent national broadband target for 2025. Some of the constraints to deepening broadband penetration in Nigeria have historically been high Right of Way (RoW) cost, insecurity and vandalism limiting fibre network growth, and subdued investment into the sector (5-year average: 3.0 per cent of total capital importation).
Unsurprisingly, the share of internet users in Nigeria (51.0 per cent) as of January lagged countries such as Egypt (71.9 per cent), South Africa (68.2 per cent), and Ghana (53.0 per cent), per Statista.
