The stability of the Nigerian naira has significantly lifted the share prices of the country’s telecommunications companies. Since January, the naira has appreciated to ₦1,447.79 per dollar, after devaluations in 2023 and 2024 that pushed it as low as ₦1,690. This stronger currency has allowed growth in data and mobile‑money businesses to positively affect telcos’ bottom lines. The Central Bank of Nigeria’s decision to permit price hikes after a 12‑year freeze has also contributed to the surge in share prices, and tariffs were lifted by 50 % in 2025, further boosting the industry.
Airtel Africa, majority‑controlled by India’s Bharti Airtel, has been a key beneficiary of this trend. Its share price has jumped 164 %, and after‑tax profit rose nearly fivefold to $376 million in early September. Airtel’s mobile‑money arm, Airtel Money, has been a crucial factor in the company’s re‑rating. The business is slated for a separate listing in the first half of 2026, with market‑growth expectations already built into the valuation. Airtel Africa now trades at 4.6 times expected core earnings, up from below 3 just four months ago, and is valued at $14.6 billion.
Other African operators have also seen their shares rally, though they remain below record highs. Kenya’s Safaricom, a pioneer of mobile money since 2007, is up 70 % in U.S.‑dollar terms this year. MTN has more than doubled, and Vodacom is up 52 %. The growth prospects of these companies are underpinned by low phone penetration and strong population growth across the continent. In a region where many people lack access to banks, telecom operators have provided financial lifelines through mobile‑money services.
Airtel Money processed transactions worth an annualized $193 billion in the second quarter of this year—a 36 % increase and roughly equivalent to Nigeria’s entire GDP. The investment case for these firms extends beyond voice to data and mobile money, offering a long runway for growth. The number of unique mobile subscribers in Africa and the Middle East is expected to rise 71 %—about 800 million users—by 2050, compared with a 15 % increase in the rest of the world.
Despite potential currency volatility and regulatory unpredictability, investors remain optimistic about the sector’s prospects. With the upcoming listing of Airtel Money, portfolio manager Sergey Dubin sees additional upside for investors. The continued expansion of mobile‑money services and data businesses is expected to keep driving telco share prices throughout the region.
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