By Olatunbosun Obafemi
MTN Nigeria has reported a revenue of ₦1.05 trillion for the first quarter of 2025, marking a 40.5% year-on-year increase, buoyed by a recent 50% tariff hike introduced mid-February. The telecommunications giant also returned to profitability, posting a profit after tax of ₦133.7 billion, a sharp turnaround from the ₦392.7 billion loss recorded in the same period last year.
The financial performance was disclosed in the company’s unaudited Q1 2025 results, released this week. Although the full impact of the new tariff structure is expected to materialize in the second quarter, the early benefits were evident in the strong top-line growth.
As part of the regulatory conditions tied to the tariff adjustment, MTN Nigeria significantly ramped up its capital expenditure. The company invested ₦202.4 billion in network infrastructure during the quarter, representing a 159% increase from ₦78.1 billion in Q1 2024. The move aligns with directives from the Nigerian Communications Commission (NCC) requiring operators to improve service quality within three months of the approved tariff changes.
Subscriber Growth and Data Surge
MTN added 3.2 million new subscribers in the first quarter, bringing its total active user base to 84.1 million. The number of active data users also rose by 2.6 million to 50.3 million, fueling a 46.4% year-on-year increase in data traffic.
“This growth was supported by our disciplined approach to gross connections and churn management, as well as continuous innovation in customer value propositions,” said Karl Toriola, CEO of MTN Nigeria.
Toriola confirmed that the phased rollout of the new pricing structure began in February, with most adjustments taking effect in March. “While the full impact on usage and revenue is expected from Q2, early indicators suggest continued resilience in customer demand, aided by our targeted customer value management (CVM) initiatives,” he added.
Macroeconomic Tailwinds and Cost Control
Despite persistent macroeconomic challenges, MTN said its performance was bolstered by relative stability in Nigeria’s foreign exchange market and moderating inflation following the rebasing of the Consumer Price Index (CPI) in January 2025. As of the end of March, the naira traded at ₦1,537 to the US dollar, while headline inflation stood at 24.2%.
The company also benefited from a revised tower lease agreement with IHS Towers, which reduced its exposure to forex fluctuations and capped inflation-linked cost increases. Operational efficiency efforts further helped offset inflationary pressures.
As a result, MTN reported a 65.9% increase in EBITDA (earnings before interest, tax, depreciation, and amortisation), with EBITDA margin expanding by 7.2 percentage points to 46.6%.
“Notably, the stability in the exchange rate in Q1 versus December 2024 helped reduce forex losses,” Toriola noted.
Regulatory Context and Industry Outlook
The NCC approved the 50% tariff adjustment in January, citing the rising cost of operations and the need for long-term sustainability in the telecom sector. The decision, authorized under Section 108 of the Nigerian Communications Act 2003, came with a mandate for operators to enhance service delivery within three months.
Speaking after the approval, MTN Nigeria’s Chief Corporate Services and Sustainability Officer, Tobe Okigbo, emphasized the company’s commitment to accelerating infrastructure improvements.
“From the NCC’s estimation, an uplift in service quality is expected within three months. However, we aim to achieve that even sooner,” Okigbo said. “Many are unaware that operators also incur losses when service quality is poor, which is why we are prioritizing network expansion.”
Investor Confidence Rebounds
MTN Nigeria’s improved financial performance has been reflected in its share price. After ending 2024 with a year-to-date loss of 24.24%, the company’s stock has rebounded strongly in 2025. As of April 29, shares were priced at ₦240, representing a 20% year-to-date gain.
