Economy
Strong Customer Growth in Nigeria Buoys Airtel Africa 9-month Results
By Dipo Olowookere
After getting battered by the implementation of new know your customer requirements by the Nigerian authorities, Airtel Africa is beginning to see an improvement in its customer base.
In its unaudited financial statements for nine months ended December 31, 2021, the leading telco said it recorded 1.9 million net additions in the third quarter, taking total group customer additions to 3.1 million.
This supported that 21.7 per cent revenue growth to $3.492 million from $2.850 million achieved in the same period of 2020.
A closer look into the revenue line showed that voice accounted for $1.747 million compared with $1.537 million in the first nine months of the preceding accounting year, while data contributed $1.127 million as against $842 million of the earlier period, with mobile money accounting for $406 million versus $291 million and other revenue contributing $306 million as against $255 million in 2020.
Business Post observed that the revenue of Airtel Africa grew partly because of a one-time exceptional revenue of $20 million relating to a settlement in the Niger Republic.
Excluding this, revenue grew by 22.5 per cent in reported currency and by 24.8 per cent in constant currency, with the difference relating to currency devaluations, mainly in the Nigerian naira (6.3 per cent) and the Malawian kwacha (8.2 per cent), in turn partially offset by appreciation in the Ugandan shilling (4.3 per cent) and the Central African franc (2.0 per cent).
Revenue growth for the 9 months period benefitted from a weakened performance in the first quarter of the prior year during the peak period of COVID-19 related restrictions across the region. However, even after adjusting for this, group revenue growth rates were ahead of FY’21.
“A strong third quarter has contributed to a pleasing nine-month financial performance across all key metrics.
“Operationally, we have continued to execute on our network and distribution expansion plans, driving continued strong growth in ARPUs across voice, data and mobile money.
“We have also seen further improvement in our customer growth trends for the group with Nigeria returning to strong customer growth,” the chief executive of Airtel Africa, Mr Segun Ogunsanya, stated.
In the period under review, the operating profit of the firm grew by 43.1 per cent to $1.146 million in reported currency, while profit after tax almost doubled to $514 million as higher profit before tax more than offset associated tax charges, with the basic earnings per share (EPS) at 11.7 cents, an increase of 113.8 per cent, largely as a result of higher profit.
This good performance excited Mr Ogunsanya, who noted that, “I am particularly pleased with developments in Nigeria, where in November we received approval in principle for both a payment service bank (mobile money) licence and a super-agent licence.”
“We are now working closely with the Central Bank (of Nigeria) to meet all its conditions to receive the final operating licences and commence operations.
“This will enable us to expand our digital financial products and reach the millions of Nigerians that do not have access to traditional financial services,” he assured.
He disclosed that the company “continued to strengthen our balance sheet, with our leverage ratio now 1.4 times underlying EBITDA, thanks to both to continued increases in operating cash flow delivery and to over $550 million of cash that has now been received from minority investments into our mobile money business.”
“We will continue to invest in expanding and evolving our platform to further deepen both financial and digital inclusion across Africa. I continue to see huge growth potential across voice, data and mobile money and our strategy is delivering against this opportunity.
“Our sustained investments in both network and distribution expansion will help to ensure that both the communities and economies across our footprint will continue to benefit from increased and affordable connectivity and financial inclusion.
“We are committed to continuing to improve the delivery of our services to our customers, with sustainability at the heart of our continued purpose to transform lives across Africa,” he added.
By Adedapo Adesanya
The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, has said ongoing reforms and strategic policy implementation in Nigeria’s petroleum sector are driving significant investments and strengthening the country’s position as a leading energy destination in Africa.
Mr Lokpobiri stated this at the Management Retreat of the Ministry of Petroleum Resources, where he stressed the need for improved institutional performance and accountability to sustain growth in the sector.
According to the Minister, the federal government has deliberately pursued far-reaching reforms aimed at creating a stable and investor-friendly environment capable of attracting local and foreign capital into the oil and gas industry.
“From far-reaching institutional reforms to the effective implementation of strategic policies, we have remained committed to carrying all stakeholders along, fostering a conducive environment for investments to flourish,” Mr Lokpobiri said.
“As a result, our petroleum sector has witnessed significant investments that continue to strengthen Nigeria’s position as a leading energy destination.”
The Minister noted that the gains recorded in the sector were the product of collective efforts across the Ministry and its agencies, commending staff for their dedication and professionalism.
“The Management Retreat of the Ministry of Petroleum Resources provided an important platform to reiterate that these accomplishments would not have been possible without the collective dedication, professionalism and teamwork of every staff member across the Ministry and its agencies,” he stated.
Mr Lokpobiri said the retreat, themed Driving Institutional Performance and Accountability in the Petroleum Sector for Sustainable National Development, underscored the importance of continuous improvement in service delivery and operational efficiency.
Drawing lessons from the theme, he urged officials of the Ministry and regulatory agencies to intensify efforts toward enhancing institutional effectiveness and strengthening governance frameworks.
“I encouraged that we must redouble our efforts, continuously improve the quality of our services, and strengthen institutional performance,” he said.
The Minister further emphasised the continued relevance of fossil fuels in the global energy mix, stressing that Nigeria must leverage its hydrocarbon resources to drive economic growth while ensuring citizens benefit from ongoing reforms.
“With fossil fuel as the dominant source of energy, we must ensure that Nigerians experience the benefits of our progress and that Nigeria remains the preferred investment destination in Africa and a globally competitive hub for energy investments,” Mr Lokpobiri added.
By Aduragbemi Omiyale
The N3.2 billion rights issue of Universal Insurance Plc has been extended by almost two weeks after securing regulatory approval.
The exercise was earlier scheduled to close on June 10, 2026, but will now close on Monday, June 22, 2026.
The extension was granted by the Securities and Exchange Commission (SEC) after a request from the underwriting organisation.
In the rights issue, Universal Insurance is offering to shareholders 2,666,666,667 ordinary shares of 50 Kobo each at N1.20 per share on the basis of one new ordinary share for every existing six ordinary shares held as of the close of business on Monday, March 30, 2026.
Subscription for the acquisition of the company’s extra shares opened on Wednesday, May 13, 2026.
The extension gives investors more time to increase their stake in the insurance firm, which intends to use proceeds from the exercise to boost its capital base, as mandated by the National Insurance Commission (NAICOM).
Insurance companies operating in Nigeria have been given till July 31, 2026, to shore up their capital base or pack up. Operators can also explore a merger if they wish.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited opened its doors to market participants in four days last week as a result of a public holiday observed on Friday, June 12, for 2026 Democracy Day in the country.
In the week, investors bought and sold 4.964 billion shares worth N207.521 billion in 235,966 deals, as against the 3.966 billion shares valued at N175.659 billion that exchanged hands in 343,587 deals a week earlier.
Analysis showed that the financial services industry led the activity chart with 4.116 billion shares valued at N84.607 billion in 96,165 deals, contributing 82.92 per cent and 40.77 per cent to the total trading volume and value, respectively.
The services sector transacted 232.479 million shares worth N4.955 billion in 17,614 deals, while the industrial goods segment exchanged 144.988 million shares worth N39.077 billion in 24,775 deals.
Sterling Holdings, FCMB, and Access Holdings were the most traded stocks with 2.883 billion units sold for N36.188 billion in 15,533 deals, accounting for 58.09 per cent and 17.44 per cent of the total trading volume and value, respectively.
A total of 40 equities appreciated in the week versus 23 equities in the previous week, 53 equities depreciated versus 65 equities a week earlier, and 53 equities remained unchanged versus 58 equities in the preceding week.
ABC Transport was the best-performing equity for the week after it gained 25.60 per cent to trade at N7.80, Consolidated Hallmark appreciated by 23.13 per cent to N8.25, Abbey Mortgage Bank rose by 21.93 per cent to N11.40, Infinity Trust Mortgage Bank grew by 20.32 per cent to N11.25, and Austin Laz soared by 15.16 per cent to N4.33.
The worst-performing equity last week was Fidson Healthcare because of its 25.86 per cent loss, closing at N101.20. Neimeth declined by 19.14 per cent to N8.55, Union Homes REIT shed 17.36 per cent to close at N70.00, SUNU Assurances slipped by 11.38 per cent to N3.97, and Unilever Nigeria dropped 10.26 per cent to trade at N140.00.
As for the index movement, the All-Share Index (ASI) and the market capitalisation chalked up 0.88 per cent each to settle at 244,738.74 points and N156.970 trillion, respectively.
Similarly, all other indices finished higher apart from the pension, AFR Bank Value, MERI Growth, MERI Value, consumer goods, Lotus II, industrial goods, sovereign bond and commodity indices, which fell by 0.03 per cent, 1.20 per cent, 0.21 per cent, 1.61 per cent, 0.54 per cent, 0.51 per cent, 1.00 per cent, 2.04 per cent and 0.34 per cent, respectively.
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