Airtel Africa and Deloitte: A seven-year relationship, a $37 million fee and a planned handover

• Since its 2019 IPO, Airtel Africa paid Deloitte more than $37 million in audit and non-audit fees, with annual costs rising rapidly due to increasing operational complexity.
• Ernst & Young is expected to replace Deloitte as the external auditor of Airtel Africa from fiscal year 2028, following a competitive tender process concluded in March 2026.
• The Big Four account for over 99% of the audit fees of Nigeria's top listed companies, giving them a near-monopoly in Africa's major capital markets.

When Airtel Africa Plc rang the bell for its dual listing on the London Stock Exchange and the Nigerian Exchange (NGX) in June 2019, Deloitte was already in place as its external auditor. After seven years and more than $37 million in fees, the relationship is headed toward a planned end. On March 10, 2026, Airtel Africa formally announced the outcome of a competitive audit tender: Ernst & Young LLP (EY) will take over as the group auditor starting from the financial year ending March 31, 2028, subject to shareholder approval at the 2027 Annual General Meeting. Deloitte will continue to sign the group's accounts until FY2027.

A looming audit bill

A review of Airtel Africa's annual reports since the IPO shows that there has been a consistent and significant increase in the fees paid to Deloitte. In the brief 38-week period ending March 31, 2019 – the group's first as a listed entity – total fees reached $5.40 million, an unusually high figure that reflects the extraordinary non-audit work undertaken by Deloitte in relation to the IPO, including acting as reporting accountant on the prospectus. That one-time cost increased the non-audit portion to $4.11 million, a level that has never been repeated since.

In the years that followed, audit fees became a major and growing component of the total. By FY2020, the combined bill had dropped to $3.00 million before climbing steadily: $3.60 million in FY2021, $4.80 million in FY2022, $5.70 million in FY2023, $6.97 million in FY2024, and $7.73 million in FY2025. During the entire period, Airtel Africa disbursed approximately $23.21 million in statutory audit fees and $13.99 million in audit-related and non-audit services, bringing the cumulative total to approximately $37.20 million.

Airtel Africa – Fees paid to Deloitte (US$ million)

Source: Airtel Africa Plc Annual Report 2019-2025

The Nigeria Factor: Why audits are becoming more expensive

The sharpest jump in fees occurred between FY2024 and FY2025. Industry observers primarily point to Nigeria, Airtel Africa's largest single market by revenue, where the dramatic devaluation of the naira – which lost almost 70% of its value against the US dollar following the unification of official and parallel exchange rates in June 2023 – created an auditing environment of extraordinary complexity. Under these conditions significantly more audit hours are required to assess revenue recognition, currency translation and impairment testing, which directly translates into higher fees. Inflationary pressures further exacerbated the impact on local staff costs at Deloitte's Nigerian member firm.

Beyond Nigeria, Airtel Africa operates in 13 other African countries, each presenting its own regulatory requirements, local GAAP considerations and foreign exchange dynamics. The group's growing mobile money business, Airtel Money, adds another layer of complexity: financial services regulation, transaction volumes and digital infrastructure all require dedicated audit attention. As a business has matured and grown, so has the scope of work required of its auditors.

Good governance, no disputes

The decision to rotate auditors should not be read as a sign of dissatisfaction with Deloitte's performance. Neither the official announcement published on NGX nor any subsequent market commentary has suggested any controversy, qualification or adverse conclusion. In fact, auditor rotation is mandated or strongly encouraged by the governance framework in many jurisdictions, and large listed companies regard it as a routine practice to maintain audit quality and independence. Airtel Africa itself has been careful to frame the change in those terms, given that Deloitte had launched the tender as part of standard governance practice after serving the group since its formation.

The sequential change – from Deloitte to FY2027, EY to FY2028 – is a deliberate choice designed to protect continuity. This gives EY ample time to undertake a thorough onboarding, become familiar with the Group's operations in 14 countries and establish working relationships with local finance teams before assuming full responsibility for statutory audit. More details on how the tender was conducted and evaluated are expected to come in the group's 2026 annual report and accounts, which is due to be published in the coming months.

Africa's audit market: a Big Four oligopoly

The Airtel Africa tender reflects the broader structural reality about the audit market on the African continent: viable options are, in practice, limited to the Big Four. For large listed companies, multinationals and major financial institutions operating in Africa, only EY, Deloitte, PwC and KPMG have the continental network, international regulatory recognition, IFRS technical depth and independence standards and stock exchange regulations sought by investors. No regional or mid-tier firm is in a position to credibly compete for Airtel Africa's mandate of scale and complexity.

The numbers testify to this. In Nigeria – Africa's largest economy by nominal GDP, with a population of more than 223 million – the Big Four collectively captured more than 99% of the audit fees paid by the top 50 companies listed on the NGX in 2024. The total fees paid by these companies to the four firms reached about 28.2 billion naira (about $18 million at current rates), with KPMG leading at 9.57 billion naira, followed by EY at 8.03 billion. According to data published by Ecofin agency, PwC is 6.14 billion and Deloitte is 4.44 billion.

South Africa also presents a similar picture. The Johannesburg Stock Exchange (JSE), the continent's largest bourse with a market capitalization of approximately $1.3 trillion, sees almost two-thirds of its listed entities undergo Big Four audits. Egypt's Egyptian Exchange (EGX), the third largest in Africa by capitalization, relies heavily on Big Four firms for its major listings. Throughout sub-Saharan Africa, while local and regional companies serve smaller entities, the high-value tier of the market is firmly in the hands of the Big Four.

However, there are emerging strains. Citing profitability concerns and difficulties in aligning local affiliate standards with global requirements, PwC has restructured or withdrawn from several Francophone West African countries in recent years. EY is also reported to be reviewing its presence in parts of Francophone Africa. These withdrawals, if they continue, could gradually further concentrate market power among the remaining players in English-speaking markets, while leaving a coverage gap in the Francophone region. For now, however, the Big Four show no signs of loosening their grip on Africa's blue-chip audit market.

What comes next for Airtel Africa?

For investors and analysts tracking Airtel Africa, the immediate practical implications of the auditor change are limited. Deloitte will audit the FY2026 results, which are expected to be published in mid-2026, and will remain responsible until FY2027. EY's first audit opinion on Airtel Africa's consolidated accounts will not be revealed until the FY2028 annual report. In the meantime, shareholders will be asked to formally approve EY's appointment at the 2027 AGM – a procedural step which, barring unexpected circumstances, should be straightforward.

The announcement marks a moment of institutional renewal for the group, which has faced considerable turmoil since its listing, including the Nigerian currency crisis, regulatory hurdles in several markets and a comprehensive recalibration of its capital allocation strategy. A new auditor takes a fresh look at the accounts and, in the best governance tradition, strengthens the independence and credibility of the financial reporting on which investors ultimately rely.

Idris Linge