MTN Nigeria reports an after-tax profit of ₦750.2 billion.
This exceptional performance also means a restoration of positive retained earnings, now at ₦142.7 billion, and shareholders’ equity, which stands at ₦293.1 billion—reversing negative balances from just a few months prior. Following this, the Board approved an interim dividend of ₦5.00 per share, sending a strong message of confidence to investors after years without payouts.
So, what fueled this impressive comeback? Several key factors stand out.
Firstly, MTN Nigeria experienced robust and widespread growth in its core revenue. Service revenue, which forms the heart of its telecom operations, soared by 57.5% year-on-year. Within this, data revenue saw a phenomenal 73.2% increase, driven by greater usage, strategic price adjustments, and a rising number of smartphone users. Voice revenue also climbed by 41.9%, thanks to an expanding subscriber base and moderate tariff adjustments. Other segments contributed significantly, with fintech revenue jumping 72.5%, digital services growing 41.9%, and non-service revenue nearly doubling by 43.6%.
Underpinning these revenue boosts was a rebound in both volume and customer adoption. The total subscriber base expanded by 11.0% to reach 85.4 million, while active data users increased by 12.8% to 51.1 million. Data traffic grew by a substantial 36.3%, and the average usage per user rose by 20.8% to 13.2 GB per month. With smartphone penetration now around 65.1%, customers are increasingly able to access a richer variety of services.
On the investment front, MTN deployed a significant ₦757.4 billion in capital expenditure (excluding right-of-use), a sharp increase from ₦217.6 billion a year earlier. This expansion into fibre, fixed-wireless access (FWA), and overall network capacity aims to maintain high service quality and support future growth.
Furthermore, the company demonstrated impressive cost management. Operating expenses grew by a contained 16.4%, while the cost of sales (covering network costs and similar items) increased by around 31.3%. Efficiency gains were achieved through renegotiated tower leases and a broader, disciplined approach to cost control. As a result, EBITDA (earnings before interest, tax, depreciation, and amortisation) more than doubled, increasing by 123% to ₦1.92 trillion, and the EBITDA margin widened by 15.1 percentage points to a healthy 51.4%.
Perhaps the most dramatic shift was MTN's move from a massive net foreign exchange loss of ₦904.9 billion in the first nine months of 2024 to a net forex gain of ₦55.6 billion in 2025. This incredible reversal reflects a more positive outlook for the naira, improved availability of foreign exchange, and astute financial management. Although net finance costs still rose by approximately 30.6% due to higher leases and borrowing costs, these were effectively offset by the forex gains and stronger overall earnings. Free cash flow also saw a robust 38.5% increase, reaching ₦742.6 billion, even amidst elevated capital spending.
On the macroeconomic front, the period saw the naira strengthen, moving from approximately ₦1,535 to about ₦1,475 per dollar, and inflation cooled significantly, dropping from roughly 34.8% to around 18%. The Central Bank also reduced the Monetary Policy Rate to 27%, which helped ease interest burdens. These broader conditions provided MTN with more flexibility to manage its costs and capitalize on favorable currency movements.
Looking ahead, MTN Nigeria's management remains optimistic, projecting continued growth beyond 2026. The company has reaffirmed its guidance for the remainder of 2025, anticipating that capital expenditure intensity will moderate, which should further boost free cash flow generation. For 2026 and beyond, MTN targets service revenue growth of "at least low-20%" and EBITDA margins of 53–55%, assuming stable economic conditions and no new price shocks.
However, risks persist. Currency volatility stands out as the most significant challenge. A renewed devaluation of the naira could quickly erode gains, as MTN remains exposed through dollar-indexed contracts for tower leases, imported equipment, and debt. In previous years, forex losses have been known to wipe out operating profits. Interest rate shocks and higher borrowing costs also pose a threat, particularly given the company's substantial capital expenditure commitments. As network expansion continues, ensuring strong returns on these investments will be critical. In Nigeria's highly competitive telecoms landscape, sustaining subscriber growth and gains in ARPU (average revenue per user) will also test management's execution discipline.
Despite these potential headwinds, MTN Nigeria's recent performance is undeniably impressive. The company has demonstrated its ability to pivot from deep losses to robust profits within a single year, propelled by strong data growth, effective cost control, and favorable macroeconomic conditions. The reintroduction of dividends further underscores this newfound confidence. For investors and industry observers, the crucial question now is whether MTN can maintain this momentum, effectively manage its foreign exchange exposure, and deliver consistent growth in the face of ongoing external challenges.
