Nigeria experienced a significant decline in mobile subscriptions, losing 4.95 million subscribers in the first five months of 2023, according to recent data released by the Nigerian Communications Commission (NCC). The total number of mobile subscriptions dropped from 225.88 million in January 2023 to 220.93 million in May 2023. This marks the third consecutive month of declining mobile subscriptions since the record high of 226.84 million in February 2023.
The decline in mobile subscriptions has been a cause for concern, as this is the first time since June 2021 that a consistent fall has been observed. The decline can be attributed to the Federal Government’s policy in 2020 and 2021, which required telecom operators to link SIM cards to National Identification Numbers, resulting in a sharp decline in mobile subscriptions.
Among the telecom operators, MTN Nigeria recorded the largest loss in mobile subscriptions, dropping from 91.95 million in January to 85.59 million in May. Airtel witnessed a marginal decrease from 60.56 million to 60.53 million. However, Globacom and 9mobile fared relatively better, with subscriptions increasing from 60.34 million to 61.15 million and 13.03 million to 13.66 million, respectively.
The teledensity, which indicates the number of active telephone connections per 100 inhabitants, declined from 118.51 percent in January to 115.91 percent in May. This decrease reflects the impact of various factors, including global macroeconomic challenges, inflation, and cash shortages, on telecom operators and their subscribers.
MTN Nigeria’s Chief Executive Officer, Karl Toriola, acknowledged the headwinds faced in the operating environment during the first quarter of 2023. He cited global macroeconomic and geopolitical developments, energy and food inflation, as well as petrol and cash shortages as factors affecting economic activities, consumers, and businesses.
The decline in mobile subscriptions raises concerns about the overall growth of the telecommunications sector in Nigeria. Industry stakeholders will need to address the challenges and explore strategies to attract and retain subscribers in an increasingly competitive landscape.
