Airtel Nigeria shines amid currency turbulence as parent posts strong FY24 results

Airtel Africa has reported solid financial and operational performance for its fiscal year ended March 31, 2024, with its Nigerian operation, Airtel Nigeria, demonstrating significant growth despite severe naira devaluation and regulatory headwinds.

The telecoms and mobile money services provider, which operates across 14 African markets, records revenue of $4.95 billion for the year. Though revenue declined 0.5% in reported currency, it grew by 21.1% in constant currency, highlighting the impact of macroeconomic volatility, particularly in Nigeria.

Sunil Taldar, Chief Executive Officer, Airtel Africa and Jaideep Paul, Chief Financial Officer, jointly presented the group’s results during an investor briefing on May 8, this year, underscoring Nigeria’s central role in Airtel Africa’s performance.

Sunil Taldar, Chief Executive Officer, Airtel Africa. Image credit: Airtel Africa website.

“The recent activation of 2Africa submarine cable,” Taldar adds, “which combined with our fibre footprint of almost 80,000 kilometers across the continent, enables us to offer reliable resilient capacity to our existing corporate customers, whilst also attracting new customers to offer a unique service at scale across the continent. In addition, the ability to leverage our strong network presence and the continued investment into 4G and 5G services provides us with a unique opportunity to offer home broadband services to our customer base. The enterprise and HPB offerings provide us with an additional lever for growth in future years and we continue to invest in order to capture this opportunity in the future.”

Nigeria: Resilient revenue growth despite currency pressures

Nigeria, Airtel Africa’s largest market , is grappling with one of the sharpest currency devaluations on the continent. The naira slides from ₦461 to the dollar in March 2023 to ₦1,303 in March 2024, with further weakening to around ₦1,550–₦1,600 in April 2025.

Despite this, Airtel Nigeria delivered a 36.7% revenue growth in constant currency, outperforming other operating units. Revenue in Q4 alone rises by over 40%, driven partly by recent tariff adjustments, the telecoms group reported

Taldar says demand for telecoms services in Nigeria remains robust, even as regulatory requirements on Know-Your-Customer (KYC) compliance led to the barring of unverified subscribers. He attributes Airtel Nigeria’s continued momentum to strong customer demand, tariff flexibility and execution of targeted cost efficiency measures.

“Airtel Nigeria ends the year with an EBITDA margin of 49.7%, improving sequentially to 52.6 percent in Q4, reflecting effective cost control and revenue growth,” Taldar explains.

Airtel Africa has reported solid financial and operational performance for its fiscal year ended March 31, 2024, with its Nigerian operation, Airtel Nigeria, demonstrating significant growth despite severe naira devaluation and regulatory headwinds. Image credit: Image FX.

Fuel costs and infrastructure investment weigh on margins

Jaideep Paul notes that rising diesel prices significantly affect operating expenses in Nigeria, accounting for around 50% of the $256 million increase in network costs across Airtel Africa. Despite this, Airtel Nigeria maintains strong profitability, with margins only moderately compressed.

The group reports a decline in reported currency EBITDA by 5.1% to $2.3 billion, but an 18 percent growth in constant currency. Reported margin stands at 46.5%, impacted largely by Nigeria’s lower contribution due to naira depreciation.

Paul says: “The decline in reported EBITDA and margin reflects cascading effects of naira devaluation and inflation. Yet, we’ve seen consistent improvement, with margin rising from 45.3% in Q1 to 47.5% in Q4.”

Mobile money and digital transformation

Airtel Africa’s mobile money business, Airtel Money, saw substantial growth, with a 30% constant currency revenue increase. Transaction value reaches $136 billion, bolstered by rising demand for digital financial services across the continent.

In Nigeria, where only 27% of customers use Airtel Money, the group identifies substantial opportunities for expansion. Taldar highlights growth in the MyAirtel app user base, increased functionality, and customer trust driven by cash float availability.

“We are broadening use cases—from deposits and withdrawals to bill payments and enterprise financial services—aimed at advancing financial inclusion,” he says.

According to Taldar, “we've seen strong success in penetrating the GSM customer base, but with only 27% of our customers using Airtel money, the opportunity remains substantial. We've also seen great momentum in the take-up of the MyAirtel app for customers, merchants and agents which simplifies the customer journey and drives improved functionality. It has also been reinforced by the trust that has been built up through the provision of easy-to-use services with a focus on float availability so customers can access their cash with relative ease as and when they need it.”

Airtel Africa has reported solid financial and operational performance for its fiscal year ended March 31, 2024, with its Nigerian operation, Airtel Nigeria, demonstrating significant growth despite severe naira devaluation and regulatory headwinds. Image credit: Image FX.

Deferred investment in Nigeria Data Centre

Airtel Africa deferred some capital expenditure (CAPEX) during the year, reporting $670 million against earlier guidance. The company postponed investment in its Nigerian data centre, though Paul confirms the project is now underway in FY25 with $40–50 million allocated.

The delay affected overall CAPEX levels, but operating free cash flow remains strong at $1.6 billion, down 3.4 percent from the previous year.

Paul adds, “We remain committed to investing in digital infrastructure to support future growth in Nigeria and across our markets.”

Debt management and dividend policy

The group continues to pursue a de-dollarisation strategy, with over 93% of operating company debt now denominated in local currencies, up from 83% last year. This reduced foreign exchange exposure, particularly important in volatile currency environments like Nigeria.

Net debt increases due to power contract renewals, pushing leverage to 2.3 times EBITDA (from 1.4 times), while lease-adjusted leverage stands at 1.0 times (up from 0.7 times).

Despite these pressures, Airtel Africa recommends a final dividend of 3.9 cents per share, bringing the total dividend for FY25 to 6.5 cents, a 9.2 percent year-on-year increase.

Sector implications and Nigerian outlook

The strong performance of Airtel Nigeria reaffirms the country’s strategic importance in the group’s operations. Nigeria remains Airtel Africa’s largest market by revenue and customer base, providing a significant share of its mobile and mobile money growth.

With ongoing investment in 4G and 5G , a growing enterprise segment, and strategic infrastructure like the 2Africa submarine cable and national fibre backbone, Airtel Nigeria positions itself to serve a growing digital economy.

Airtel Africa has reported solid financial and operational performance for its fiscal year ended March 31, 2024, with its Nigerian operation, Airtel Nigeria, demonstrating significant growth despite severe naira devaluation and regulatory headwinds. Image credit: Image FX.

Taldar says that “our diversified portfolio, growing customer base, and disciplined execution make us confident in our long-term strategy. Nigeria is integral to that success.”

According to him, “let me now briefly call out the key conclusion from our recent performance in Nigeria region. Demand for our services in Nigeria have been maintained and this has translated into strong revenue growth momentum, despite the impact of barring of customers following the KYC directives issued by the regulator.”

Outlook

Airtel Africa projects FY25 capital expenditure between $725 and $750 million, including Nigeria data centre investment. The company expects stable macroeconomic conditions, continued growth in mobile and digital services, and improvement in EBITDA margins, driven by efficiency gains and revenue expansion.

As Nigeria continues to navigate economic reforms and currency volatility, the telecoms group reckons that Airtel Nigeria’s ability to maintain revenue growth and operational efficiency will remain critical for both the group’s financial health and Nigeria’s broader digital transformation agenda.