MTN bleeding subscribers in Nigeria

Africa’s largest mobile operator MTN has cut its full year forecast for Nigeria by almost a third as it loses tens of thousands of subscribers

MTN’s Nigeria business is feeling the pinch following the loss of 80 000 subscribers for the quarter ending September, in its top performing market.

Reuters reports that the SA telecommunications giant has been struggling to fight off competition in Nigeria from the likes of United Arab Emirate’s Etisalat, India’s Bharti Airtel and privately owned local firm Globacom.

The company cut its growth forecast for new customers in Nigeria from 5 million to 3,5 million users. It currently has 58,4 million subscribers in Africa’s largest economy.

MTN group CEO Sifisa Dabengwa attributes the decline to “stringent” regulatory restrictions, which prohibit the company from offering significantly lower tariffs compared to their competitors. Stiff competition and ongoing instability in Northern Nigerian regions affected by Boko Haram insurgency also contributed to the drop. The Islamist group is reportedly behind some of their radio masts being burnt down.

MTN and two other mobile operators were fined a combined $4 million (R44 million) and banned from selling SIM cards, for poor service.
“These regulatory actions are quite severe and it will be hard for MTN to resume anything close to double-digit growth again. At best, it will be single-digit positive revenue growth for the next while in Nigeria,” Mohammed was quoted saying.