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Home » Telcos Rake in Billions As Nigerians Grapple with Data Drain
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Telcos Rake in Billions As Nigerians Grapple with Data Drain

Elvis EromoseleBy Elvis EromoseleAugust 19, 2025No Comments4 Mins Read
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Elvis Eromosele

Telecommunication companies in Nigeria are smiling at the bank. In recent weeks, industry leaders have reported massive profits, with figures exceeding billions. On paper, it reads like a triumph of resilience in a difficult economy. The surge in smartphone use, increased dependence on mobile internet, and the inevitability of digital connectivity have powered this growth. Telcos are riding high, driven largely by data, the new “black gold”, as millions of Nigerians rely on their networks for banking, schooling, shopping, work, and entertainment.

 Look at the numbers in the first half of 2025, MTN Nigeria posted a staggering ₦622.2 billion in pre-tax profit, with ₦133.7 billion in Q1 followed by ₦419.6 billion in Q2 alone, marking a dramatic reversal from the losses of 2023 and early 2024. Meanwhile, Airtel Africa, buoyed by Nigeria’s tariff adjustments and rising data demand, turned in a pre-tax profit surge of 269 per cent in its Q1-2026 results, that is $273 million, and Nigeria accounted for nearly a quarter of its revenue.

The numbers dazzle. MTN’s data revenue soared 85.6 per cent, to ₦701 billion in Q2, while Airtel’s data revenue climbed 60.3 per cent to ₦260 billion. These companies are raking it in, yet Nigerian subscribers feel increasingly cornered.

 Yet, behind these glossy financial reports lies another story, one told daily by frustrated subscribers. For many Nigerians, the experience of using telecom services is one of constant struggle. They complain about soaring call tariffs and rising data costs that never seem to match actual usage. The phrase “data drain” has become commonplace, reflecting the widespread belief that subscriptions vanish far quicker than they should.

 So how did we get here? In early 2025, the Nigerian Communications Commission (NCC) approved a sweeping 50 per cent increase in voice, SMS, and data tariffs, jumping from ₦350 to ₦525 for 1GB, for example. The Nigeria Labour Congress (NLC) promptly rejected the move as “insensitive, unjustifiable,” and organised protests, warning of boycotts and strikes if the hike wasn’t reversed.

 Poor service quality adds salt to the injury. Dropped calls, weak signals, and sluggish internet speeds are part of the daily grind, even in Lagos and Abuja, the country’s supposed commercial and political nerve centres. For people in smaller towns and rural communities, the situation is far worse, with entire areas left in near-digital darkness.

 Then there is customer service, which many describe as nothing short of inimical. Long queues snake around service centres. Calls to customer care often end with endless holds or robotic responses that provide little help. The result is a system where subscribers feel ignored, undervalued, and exploited, even as their patronage fuels the billions declared in profits.

 This sharp contrast between thriving companies and dissatisfied customers points to a deeper problem: the lack of accountability in the sector. The Nigerian Communications Commission (NCC), the industry regulator, has on several occasions issued fines and warnings over poor service quality. But the reality on the ground suggests that the impact of regulation is limited. Consumers continue to shoulder the burden while operators celebrate record earnings.

 The irony is glaring. The same customers whose patronage makes the industry profitable feel shortchanged at every turn. It is a tale of two realities: corporate prosperity on one side and daily frustration on the other.

 The truth is that telcos can no longer afford to ignore this widening gap. They must commit to reinvesting a significant portion of their profits into infrastructure, network expansion, and improved service delivery. Transparency is also key. Subscribers deserve to know exactly how their data is consumed, without ambiguity or hidden deductions. Above all, a culture shift is needed, one that places the customer at the centre, with faster complaint resolution and more responsive support.

 Regulation must also become firmer and more effective. Quality-of-service benchmarks should not only be announced but enforced, with meaningful consequences for failure. For all the excuses about high operating costs, insecurity, and multiple taxation, telcos must strike a balance between profitability and fairness.

 Telecom services are no longer a luxury; they are the backbone of modern life and the engine of Nigeria’s digital economy. Businesses cannot run without them. Families cannot connect without them. Students cannot learn without them. This indispensable role comes with responsibility.

 As operators announce their huge profits, they must also announce their commitment to serving customers better. Without that, the paradox will persist – billion-dollar companies surrounded by millions of dissatisfied subscribers. In the long run, that is a recipe not for long-term success but for resentment.

 Elvis Eromosele, a corporate communications professional and sustainability advocate, wrote via elviseroms@gmail.com.

 

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Elvis Eromosele

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