Following extensive engagements, the Nigerian Communications Commission (NCC) has approved a maximum tariff increase of 50.0% for Mobile Network Operators (MNOs), effective January 20, 2025. This marks the first tariff adjustment since 2013 and is deemed essential by the NCC to support infrastructure investments, drive innovation, and improve service quality, network reliability, and coverage for consumers.
The new tariffs present a significant revenue growth opportunity for telecom operators, prompting a reevaluation of our coverage companies. MTNN stands to benefit the most, with the tariff increase expected to drive a 59.0% rise in revenue for 2025, stabilising at a medium-term compound annual growth rate (CAGR) of 26.6%.
For AIRTELAFRI, we anticipate an immediate revenue boost in the final quarter of FY’24/25, given its March financial year-end. By FY’25/26, the Nigerian OpCo gains, combined with continued growth in other operating regions, are projected to lift the group’s revenue by 17.0%, reaching $5.89 billion.
