Airtel Nigeria is engaging with about 4.9 million of its subscribers that are yet to be verified under the government-ordered SIM registration to avert a potential ₦6,399,568,000 ($4 million) revenue loss, Sunil Taldar, Airtel Africa CEO says in the mobile phone group’s trading update.
Taldar, who resumed as Airtel Africa CEO on July 1, dropped this hint in the mobile phone company’s results for quarter ended 30 June 2024 that was announced on July 25 reflecting growth across its mobile, mobile money and other services across 14 countries across the continent “despite challenging macro-economic environment.”
Airtel Nigeria, Taldar says, is currently engaging with approximately 4.9 million customers whose National Identity Numbers (NINs) are unverified under the SIM registration directive issued by the Nigerian Communications Commission (NCC) in December 2023, which mandates the full network barring of all unverified SIMs.
According to Taldar, “since the directive was issued in December 2023, 8.7m customers have already been verified. Currently we are engaging with approximately 4.9m customers whose NINs are yet to be verified, with approximately $3m-$4m of monthly revenue at risk. We continue to engage with the NCC and work closely with the relevant authorities to facilitate and accelerate the verification process to minimize the risk of service disruption to these customers, whilst also limiting the revenue impact from our compliance to the directive issued.”
Sunil Taldar, Airtel Africa CEO.
Airtel engaging with NCC to accelerate SIM registration verification in Nigeria, Airtel Africa CEO says
The Airtel Africa CEO says that in December 2023, the NCC issued an industry-wide directive mandating that all mobile network operators ensure their customers link their SIM cards with valid National Identity Numbers (NINs). Customers were given until February 28, 2024, to submit their NINs, and until July 31, 2024, for those whose NINs remain unverified, an extension from the initial April 15 deadline. Additionally, no customer is allowed to have more than four active SIMs, with any excess SIMs to be barred by March 29, 2024.
According to Taldar, “since the directive was issued in December 2023, 8.7m customers have already been verified. Currently we are engaging with approximately 4.9m customers whose NINs are yet to be verified, with approximately $3m-$4m of monthly revenue at risk. We continue to engage with the NCC and work closely with the relevant authorities to facilitate and accelerate the verification process to minimize the risk of service disruption to these customers, whilst also limiting the revenue impact from our compliance to the directive issued.”
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Despite these challenges, the telecoms giant underscores that in the fiscal year ending in 2024, Airtel Nigeria experienced significant growth in several areas. Revenue grew by 33.2% in constant currency, driven by strong demand for data services across the country. However, reported revenue declined by 51.6% to $256 million due to the substantial devaluation of the Nigerian naira. The growth in constant currency revenue was fueled by a 4.6% increase in the customer base and a 27.4% increase in Average Revenue Per User (ARPU). Nevertheless, customer base growth was somewhat constrained by the barring of non-compliant customers as per regulatory directives.
Airtel highlighted that voice revenue saw a 21.6% increase in constant currency, attributed to customer base growth and a 16.3% rise in voice ARPU. Data revenue surged by 41.3%, with data usage per customer increasing by 28.6% to 7.3 GB per month. Nearly 100% of Airtel’s sites now deliver 4G services, enhancing the overall user experience.
Additionally, Airtel reported that its Nigeria’s total customer base grew by 8.6% to 155.4 million, with data customers increasing by 13.4% to 64.4 million. The penetration of smartphones rose by 4.7% to 41.7%, driving higher data usage. Mobile money subscribers grew by 14.9%, reflecting Airtel’s commitment to enhancing financial inclusion, with transaction values increasing by 28.7% in constant currency.
In response to these developments, Airtel says it has launched a comprehensive cost-efficiency programme to reduce network costs through optimisation and renegotiation of key contracts. The benefits of this initiative are expected to materialise over the next year, ensuring sustainable growth and enhanced customer experience.
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