In a significant turning point for Nigeria’s largest telecom operator, MTN Nigeria has reported that data revenue outpaced voice income for the first time in its history, marking a significant shift in consumer behavior and the structure of telecom revenue in the country.
According to the company’s unaudited financial results for the first quarter of 2025, MTN earned N529.4 billion from data services, representing a 51.5 percent year-on-year increase compared to N349.5 billion recorded in Q1 2024. Voice revenue, which traditionally held the lion’s share of earnings, stood at N407.4 billion, now clearly trailing behind.
This development comes as the telco’s total service revenue hit N1.05 trillion, reflecting a 40.5 percent growth from the same quarter last year. On a quarter-on-quarter basis, data earnings rose by 17 percent, while voice revenue climbed by 15.5 percent, reinforcing the momentum behind Nigeria’s data-driven telecom market.
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While MTN attributes the growth in data revenue to factors such as network investments, rising smartphone penetration, and increased average usage per subscriber — now at 12.8GB per user — some analysts are pointing to a more immediate trigger: the recent approval of data and voice tariff hikes by the Nigerian Communications Commission (NCC).
Tariff Adjustment Driving Behavioral Shift
In March 2025, mobile operators implemented a modest increase in data and voice tariffs following approval by the NCC, citing operational cost pressures driven by inflation, currency devaluation, and persistent energy challenges. The price hike is believed to have forced many subscribers to rethink how they communicate and consume services.
Although data prices have also risen, voice call charges have increased proportionately, leading many users to pivot to more cost-effective, internet-based alternatives such as WhatsApp, for voice communication. This shift is believed to have been reflected in MTN’s Q1 results, which show data traffic increasing by 46.4 percent and smartphone penetration rising to 60.7 percent, following the addition of approximately four million new smartphones to the network.
Industry analysts believe that many Nigerians are now relying more heavily on data bundles to access multiple services rather than spending on traditional voice airtime — a trend that is unlikely to reverse anytime soon.
Continued Momentum Expected in Q2
With the Q2 period already underway, analysts predict that MTN’s data revenue will continue to rise, as the full effect of the tariff hike continues to shape user behavior. The growing entry-level smartphones, alongside MTN’s investments in network expansion, especially in its 4G and 5G infrastructure, are expected to sustain — if not accelerate — this trajectory.
MTN’s 4G coverage expanded to 82.7 percent of the population in Q1 2025, while 5G coverage held at 12.7 percent, with the company prioritizing capacity enhancements over fresh rollouts. Its efforts to dominate the home broadband space also continued, with 233,000 new subscribers added during the quarter, bringing its total broadband user base to 3.5 million. Much of this growth was driven by the company’s 5G fixed wireless access and fiber-to-the-home services.
“These efforts align with our commitment to expanding broadband access and accelerating digital inclusion across Nigeria,” the company said.
MTN’s strong Q1 performance signals a broader transition that may reshape how telecoms operate and price their services in Nigeria. As voice revenue stagnates, data is becoming the new battleground, not just for earnings, but also for user loyalty and market share.