In a recent report from the National Communication Commission (NCC), it has come to light that Nigerian voice subscribers have seen a notable 2.4 percent decrease in seven months. As of the end of July, telecommunications service providers had collectively lost approximately 6 million voice subscribers, signaling a challenging period for the industry.
According to the NCC report, the number of telephone subscriptions in Nigeria dropped from 226.2 million in January to 220 million in July. This decline of 6 million subscribers, equivalent to 2.4 percent of users, reflects the economic challenges the nation has faced in the first seven months of the year.
A closer look at the data reveals that the sector closed out 2022 with 222.5 million subscribers. By January 2023, this figure had increased by 3.6 million, reaching 226.2 million. In February, there was a slight uptick to 227.1 million. However, it took a downturn in March, reaching 226.2 million as approximately 1.5 million Subscriber Identification Module (SIM) cards became inactive. The decline persisted in April, with numbers plummeting to 223.7 million, followed by 221 million in May, and finally, 220 million in June.
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Impact on Teledensity
This drop in voice subscribers has had a noticeable impact on Nigeria’s teledensity, which decreased from 118.5 percent in January to 115.7 percent in July. Teledensity measures the number of telephone connections per 100 people in a specific geographic area and is often used to gauge access to voice and data communications services.
Among the telecom operators, MTN Nigeria experienced the most significant loss in active voice subscribers during this period, with a drop of 6 million subscribers. Airtel also witnessed a decline, going from 60.5 million to 60 million subscribers, indicating a loss of 500,000 active subscribers between January and July.
However, not all telecom providers experienced losses. Globacom and 9mobile saw growth in their subscriber bases during this challenging period. Globacom, attributed to its recharge bonuses and incentives, added 1 million voice subscribers. Meanwhile, 9mobile gained 700,000 users in the seven-month span.
Broadband Penetration Takes a Hit
In the world of telecommunications, broadband penetration is a crucial metric. The NCC report reveals that broadband penetration in Nigeria decreased from 48.21 percent in January to 47.01 percent in July. This decrease was accompanied by approximately 2.2 million customers in the broadband sub-sector not utilizing the service during this period. The number of users dropped from 92 million in January to 89.7 million by the end of July.
On a more positive note, Internet users on the narrow band (GSM) platform increased by 3 million, as operators witnessed a rise from 155 million in January to 158 million by July. This indicates a shift in preferences and usage patterns among consumers in the telecommunications landscape.
The data paints a complex picture of the telecommunications industry in Nigeria, reflecting the ongoing challenges and changes within the sector. It also underscores the need for telecom operators to adapt to evolving consumer demands and economic conditions to remain competitive in this dynamic market.
