Subscriber Growth and Teledensity Increase
The Nigerian telecommunications industry experienced consistent subscriber growth in the third quarter of 2025. New data released by the Nigerian Communications Commission indicates that active telephone subscriptions reached 175.08 million in October 2025. This represents an increase of 1.5 million subscribers from the 173.54 million recorded in September and a rise from 171.57 million in August.
The data also revealed an increase in teledensity, which climbed to 80.87 percent during the same period, up from 80.05 percent in September 2025. Teledensity is defined as the number of active telephone connections per one hundred inhabitants within a specific area, expressed as a percentage.
Internet connections facilitated by mobile network operators also saw a significant rise, increasing by approximately 8 percent month-on-month to reach 142.0 million. This growth pushed Nigeria’s internet penetration rate to 49.89 percent, a slight increase from 49.34 percent in August.
Mobile Network Operator Performance
The overall growth in total subscribers was primarily driven by gains across all major mobile network operators. MTN Nigeria (MTNN) added over 700,000 new subscribers, bringing its total user base to 91.07 million, continuing its upward trend from September. However, its market share saw a slight decrease to approximately 52 percent from 52.1 percent in the preceding month.
Airtel Nigeria followed with nearly 569,000 new subscribers, increasing its total to 59.03 million. Its market share experienced a marginal decline of 15 basis points, settling at 33 percent. Globacom added 442,000 subscribers, which boosted its total to 21.8 million and its market share to 12 percent. Each of these networks demonstrated consistent month-on-month growth.
Industry Challenges and Investment Returns
The sustained growth in subscribers signals a promising return on investment for industry players. This comes after a challenging period marked by significant losses stemming from drastic foreign exchange regime changes implemented by the Central Bank of Nigeria in 2023.
High operating costs remain a critical challenge for the sector. These costs are exacerbated by the substantial requirements for network deployment, including dense fibre optic backhaul, expensive tower upgrades, and significant power consumption.
According to the Nigerian Communications Commission (NCC), industry-wide expenses surged by 50.92 percent in 2023 alone. This increase was attributed to higher diesel prices, escalating security costs, and the expense of imported equipment. The depreciation of the naira by over 220 percent between 2021 and 2024 has further intensified the financial strain on telecommunications companies.
The cost associated with infrastructure vandalism has also significantly aggravated these financial pressures.
Reports indicate that repairs and revenue losses resulting from damaged cables cost Nigerian telecom operators approximately N27 billion ($23 million) in 2023. MTN alone reported relocating 2,500 kilometers (1,553 miles) of vulnerable fibre cables between 2022 and 2023, incurring expenses exceeding N11 billion. This expenditure is substantial enough to fund the construction of over 870 kilometers of new fibre lines in underserved areas.
Future Revenue Outlook
Industry analysis suggests that the telecommunications sector is positioned for sustained revenue growth. This projection is supported by anticipated increases in tariffs and the consistent demand for data services. The implementation of a 50 percent increase in voice and data tariffs in the first quarter of 2025 is expected to bolster operator revenues, even as competition among the four main players intensifies.