from OKORO CHINEDU in Lagos, Nigeria
Nigeria Bureau
LAGOS, (CAJ News) – NIGERIA has reported a third consecutive monthly rise in mobile and internet connections as the information and communication technology sector defies economic headwinds.
Such prevailing challenges include a rise in operating costs due to the high inflationary environment, exacerbated by the depreciation of the naira currency.
According to data from the Nigerian Communications Commission (NCC), total active mobile lines and internet connections increased slightly by 0,5 percent month-on-month (m/m) and 0,6 percent m/m to 223,2 million and 162,1 million respectively as at end of November 2023.
Additionally, the latest figure represents a mobile teledensity of 112 percent and an internet penetration of 81 percent, based on a population of 200 million.
Notably, all the major network operators registered net subscriber gains, with a combined net addition of around 1,1 million users in November 2023.
MTN Nigeria retained its leadership position, with a slight increase of 236 000 users in the above mentioned period. This has taken its total customer base to 86 million, representing a market share of 38,6 percent.
Airtel Nigeria reported the largest subscriber gain with a net addition of about 628 000. Its new subscriber base of 61,3 million has grown its market share to 27,5 percent.
Globacom and 9mobile also registered net subscriber gains of 155 000 and 36 000, taking their customer base to 61,5 million and 14 million, respectively.
FBNQuest Capital noted the network operators were primarily supporting the information and communication sector through continuous robust revenue growth.
However, given the ongoing depreciation of the naira currency, the market watcher expects higher forex losses to continue to negatively impact the net-finance cost of telecoms companies.
“Consequently, we expect the projected increase in finance costs to partially offset the financial performance of publicly listed GSM (Global System for Mobile Communications) companies,” Tunde Abidoye, FBNQuest Equity Research Analyst, forecast.
– CAJ News