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Nigeria Remains Airtel Africa’s Largest Market 

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It would not be a hyperbole to compare Airtel Nigeria, a subsidiary of Airtel Africa, to a cash cow that has a steady return on profits that far exceeds the outlay of cash required to acquire or start it.

The contribution of the Nigerian operations to Group earnings cannot be overemphasised, given a growing young population that craves for consumption and data service.

There is more room for improvement as the country’s population that is currently at 200 million is forecast to hit 400 million by 2050, according to a World Bank report. It remains Airtel Africa largest market.

Despite a restriction on SIM cards and insecurity threatening Nigeria’s sovereignty, Airtel Nigeria posted revenue of $445 million.

That compares with East Africa, $394 million and the Rest of Africa $276 million respectively, according data gathered by MoneyCentral.

The telecoms giant generates more profit from operations than other subsidiaries as it recorded earnings before interest, taxation, amortization (EBITDA) margin of 55.30 percent as at June 2021.

East Africa and Rest of Africa recorded an EBITDA margin of 46.70 percent and 40.20 percent respectively.

Similarly, Airtel Nigeria recorded EBITDA of $246 million, and that compares with East Africa $184 million and the rest of Africa $111 million.

Of course, the growth of population signifies significant growth opportunities for data Airtel Nigeria Money growth, particularly as smartphone usage increases.

According to UN Habibat data, Nigeria’s urban population rose 50 percent of total population in 2018 from 30 percent in 1990, while Airtel East Africa and Airtel Francophone Africa combined urban population rose to 28 percent and 30 percent in 2018 from and 28 percent 199o respectively of their total population.

Nigeria will remain the largest market of Airtel Africa, which means it has tremendous growth potentials given its low mobile and banking penetration.

According to Efina, the country currently has 63 million unbanked adults, which translates to 36.80 percent of the adult population.

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