Nigeria, known for its large mobile population, has experienced a substantial decrease in mobile subscriptions over the past three months. According to recent industry data from the Nigerian Communications Commission, the country’s mobile subscriptions shrank by a staggering 3.49 million, raising concerns about the nation’s progress towards achieving mobile inclusion for all.
This decline comes after Nigeria reached an all-time high of 226.84 million mobile subscriptions in February earlier this year. However, since then, the number of subscriptions has been steadily decreasing. In March, it fell to 225.82 million and further plummeted to 223.34 million, marking the first consecutive decline in mobile subscriptions since June 2021.
In 2020 and 2021, the Federal Government’s policy to link SIM cards to National Identification Numbers significantly impacted the mobile industry and resulted in a sharp decline in subscriptions. However, following improvements and a subsequent rise to record highs, the recent decline has raised concerns among industry stakeholders.
Among the major telecommunication firms, MTN Nigeria has been the only operator to witness a loss in mobile subscriptions during this period. Their subscriptions dropped by 4.03 million, declining from 92.71 million to 88.68 million. Despite this, MTN Nigeria still maintains its position as the largest mobile network operator in the country.
On the other hand, other telecom companies experienced more favorable outcomes. Globacom saw a marginal growth of 172,867 subscriptions, increasing from 60.76 million to 60.93 million. Airtel added 31,705 new subscriptions, pushing their numbers to 60.33 million from 60.30 million. However, 9mobile witnessed the most substantial growth, adding 330,003 new subscriptions and reaching 13.40 million, up from 13.07 million during the review period.
This decline in mobile subscriptions has also impacted the teledensity, which is a measure of the number of active telephone connections per one hundred inhabitants within an area. In April, the teledensity fell to 117.17 percent from its previous level of 119.01 percent in February.
In light of MTN Nigeria’s first-quarter report, Karl Toriola, the CEO of MTN Nigeria, acknowledged that several global macroeconomic factors, such as inflation and cash shortages, were adversely affecting their consumers. Toriola stated, “We continued to experience headwinds in our operating environment in the first quarter of 2023. The impacts of the ongoing global macroeconomic and geopolitical developments on energy, food, and general inflation were exacerbated locally by petrol and cash shortages experienced during the period. This placed additional pressure on economic activity, consumers, and businesses.”
Previously, the steady growth in the number of mobile subscriptions in Nigeria was attributed to increased productivity and efficiency in various sectors. However, this recent decline has raised concerns about the country’s ability to achieve mobile inclusion and highlights the need for concerted efforts to address the challenges impacting the mobile industry.
Nigeria, with its large population and potential for mobile connectivity, must focus on strategies to revive the growth of mobile subscriptions, ensuring that the benefits of mobile technology are accessible to all citizens.
