Sustained Growth in Mobile Connectivity

By FBNQuest Analysts

Today, we turn our attention to the National Bureau of Statistics’ (NBS) recent data on voice and internet subscriptions per state.

According to the data, there were 206.4 million active voice users in Q2 ’22, representing a gain of 3.5% q/q (10% y/y).

The overall number of internet connections also climbed, reaching 151.3 million, up  3.8% q/q (7.8% y/y). The rate of mobile connectivity, internet penetration, and broadband penetration are key contributors to economic growth and development.

Consequently, the states’ levels of mobile connectivity are frequently reliable markers of their level of economic activity.

Lagos topped the list of mobile active and internet subscribers with 25 million active mobile and 18.4 million internet connections respectively in H1 ’22. This largely reflects its high level of economic activity and urbanization relative to other states.

Its share of mobile and internet connections was roughly double that of second place Kano State with 12.5 million active mobile and 9.3 million internet connections respectively.

Ogun, Oyo, and the FCT, with 12.3 million, 10.9 million, and 9.7 million active customers complete the list of the top five.

In absolute terms, Kano and Lagos recorded the highest net customer additions of 833k and 776k respectively during the quarter.

The concentration level is underscored by the fact that the top 5 and top 10 states accounted for 34.1% and 52.4% of actively mobile lines, and 25.2% and 52.5% of internet connections respectively.

The data also shows the network operators’ geographic coverage. MTN Nigeria had the largest footprint of all the network operators with a market leadership position in 28 states, and an average market share of c.41% across the 36 states of the federation and the FCT.

Airtel Nigeria had an average market share of 29% across the states, with market leadership across three states. However, it placed a respectable second in 27 states.

Despite its first-place position in 6 states, Globacom had an average market share of 25% across the states. This reflects its operational focus on key states like Kogi and Oyo.

EMTS (9Mobile) average market share is down to 5% across the states. Its market share in Lagos, its biggest market, is a paltry 11%.

In Lagos, MTN, Airtel, and Globacom held market shares of 32%, 29%, and 28%, respectively. Underscoring this competitive intensity is the lucrative nature of the market.