Airtel Africa PLC has announced a planned handover of its external audit from Deloitte LLP to Ernst & Young LLP (EY), ending a seven-year relationship that has seen the company pay more than US$37 million in audit and non-audit fees. The change will take effect from the financial year ending March 31, 2028, following shareholder approval at the 2027 Annual General Meeting, with Deloitte continuing to audit the group through FY2027.
Since its June 2019 dual listing on the London Stock Exchange and Nigerian Exchange (NGX), Airtel Africa has steadily increased payments to Deloitte. Fees totaled US$5.40 million in the truncated 38-week FY2019, inflated by one-off non-audit work linked to the IPO, including acting as reporting accountant on the prospectus. Audit fees subsequently became the dominant component, rising from US$3.00 million in FY2020 to US$7.73 million in FY2025, reflecting the group’s growing operational complexity and scale across 14 African countries. Overall, statutory audit costs reached approximately US$23.21 million, with US$13.99 million spent on audit-related and non-audit services.
Nigeria, Airtel Africa’s largest market, was a major driver of rising fees. The devaluation of the Naira which lost roughly 70 percent of its value against the U.S. dollar following the unification of official and parallel exchange rates in June 2023 created a more complex auditing environment. Assessing revenue recognition, currency translation, and impairment under these conditions required substantially more audit hours. Inflationary pressures on local staff costs at Deloitte’s Nigerian affiliate compounded the increase.
Beyond Nigeria, each of Airtel Africa’s 13 other operating markets presents unique regulatory and accounting requirements. Growth in the mobile money segment, Airtel Money, has added further complexity, with regulatory compliance, transaction volume, and digital infrastructure demanding dedicated audit oversight.
The auditor rotation is framed as routine governance rather than dissatisfaction. Corporate governance best practices in many jurisdictions encourage periodic auditor changes to maintain independence and quality. Airtel Africa emphasized that the competitive tender leading to EY’s appointment was part of standard governance processes. The staggered handover is designed to ensure continuity, allowing EY to familiarize itself with operations and build local relationships before assuming full responsibility.
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The transition also reflects broader trends in Africa’s audit market, where the Big Four — Deloitte, EY, PwC, and KPMG — dominate blue-chip audits. In Nigeria, they captured over 99% of fees from the top 50 listed companies in 2024, totaling approximately 28.2 billion Naira (around $18 million). South Africa and Egypt show similar concentrations, with large listed entities overwhelmingly reliant on the Big Four. Smaller regional firms continue to serve mid-tier companies, but high-value mandates remain out of reach. Recent PwC and EY withdrawals from some Francophone West African markets may further concentrate market power among remaining Big Four firms in English-speaking Africa.
For investors, the practical impact is limited. Deloitte will audit FY2026 and FY2027 results, with EY’s first opinion expected for FY2028. Shareholders will formally approve the change at the 2027 AGM. Analysts say the handover signals a moment of institutional renewal, reinforcing governance and audit independence at a company that has navigated currency crises, regulatory challenges, and evolving capital strategies since its listing.
A new auditor brings fresh scrutiny to financial statements, enhancing credibility for investors relying on audited accounts. While the Big Four maintain near-monopoly control over large African audits, the move demonstrates Airtel Africa’s commitment to good governance and standard corporate practice in audit rotation.
