MTN Nigeria has posted an impressive N1 trillion in revenue for the first quarter of 2025, a 40.5% increase from the N752.9 billion reported in Q1 2024. This surge was driven by the recent tariff adjustment implemented in February 2025, although the full effects of the tariff increase are yet to be fully realized.
Return to Profitability
The telecom giant has made a remarkable recovery, bouncing back from a loss of N392.7 billion in Q1 2024 to record a profit of N133.7 billion in Q1 2025. The positive financial performance signals the company’s resilience and strategic recovery.
In response to the Nigerian Communications Commission’s (NCC) stipulation for the tariff increase, MTN also significantly boosted its network capacity, investing N202.4 billion in infrastructure during the first three months of the year. This represents a 159% increase in capital expenditure compared to the same period in 2024, where it spent N78.1 billion.
Subscription Growth and Data Usage
MTN’s customer base continues to grow, with 3.2 million new subscribers added in Q1, bringing its total to 84.1 million. Additionally, the company saw a surge in active data users, who increased by 2.6 million, pushing the total to 50.3 million. This contributed to a 46.4% year-on-year increase in data traffic.
Karl Toriola, CEO of MTN Nigeria, attributed this growth to the company’s disciplined approach to managing customer connections and churn, as well as its ongoing innovation in customer offerings.
“We began implementing the new tariff structure in mid-February 2025, with most of the adjustments taking effect in March. While the full impact on usage and revenue is expected in Q2, early signs show strong resilience in customer demand, supported by our targeted customer value management initiatives,” Toriola explained.
Stability Amid Economic Challenges
Despite the ongoing macroeconomic challenges, MTN found encouragement in the relative stability of the naira and a moderation in inflation, following the rebasing of the Consumer Price Index (CPI) in January 2025. By the end of March 2025, the exchange rate had remained steady at N1,537/US$, with reported inflation at 24.2%.
The company was also able to mitigate cost pressures, thanks to its revised tower lease agreement, which helped lower foreign exchange exposure and limit price hikes. This contributed to a 65.9% increase in EBITDA and a 7.2 percentage point expansion in its EBITDA margin to 46.6%, in line with company guidance.
NCC’s Tariff Adjustment and the Road Ahead
The NCC’s approval of a 50% tariff increase for telecom operators in January 2025 was aimed at addressing rising operational costs and ensuring the sector’s sustainability. As part of the approval conditions, the commission required telecom operators to improve service quality within three months, which would mean increased investment in infrastructure.
MTN’s Chief Corporate Services and Sustainability Officer, Tobe Okigbo, emphasized that the company was committed to improving network capacity and delivering better quality service to customers. “The better the quality, the more we invest, which ultimately benefits everyone,” Okigbo stated.
Share Price Recovery
MTN Nigeria’s stock has seen a significant recovery this year. After experiencing a year-to-date (YTD) loss of 24.24% in 2024, the company’s shares have rebounded, closing at N240 as of April 29, 2025. This marks a 20% YTD gain, further reflecting the company’s strong financial turnaround.
