MTN Nigeria Communications Plc has reported a historic financial turnaround, posting a profit after tax of ₦1.1 trillion at year-end 2025, as its subscriber base surged to 87.3 million and service revenue crossed ₦5.2 trillion.
The audited results, released Thursday, mark the first time the telecoms operator has crossed the trillion-naira profit threshold, a dramatic reversal from the ₦400.4 billion loss reported by the telco in 2024. The performance, MTN Nigeria says, reflects a powerful combination of subscriber growth, strong data demand, pricing discipline, foreign exchange stability, and the full-year impact of tariff adjustments approved in 2024.
Karl Toriola, MTN Nigeria CEO, describes 2025 as a decisive inflection point.
“2025,” Toriola says, “marked a significant turning point in our business performance and resumption of dividend payments. In the period, we returned to profitability, generated stronger free cash flow and restored positive retained earnings and shareholders’ funds.”
“2025,” Toriola says, “marked a significant turning point in our business performance and resumption of dividend payments. In the period, we returned to profitability, generated stronger free cash flow and restored positive retained earnings and shareholders’ funds.”
He adds that the recovery was underpinned by “excellent commercial execution, commitment to operational efficiency and disciplined capital allocation, supported by a more stable macroeconomic environment.”
MTN Nigeria profit rebound crosses the trillion-Naira mark
MTN Nigeria’s ₦1.1 trillion profit after tax, up 377.9% year-on-year, represents one of the strongest earnings recoveries in Nigeria’s corporate history.
Key financial highlights for 2025 include:
- Service revenue: ₦5.17 trillion (up 55.1%)
- Total revenue: ₦5.20 trillion (up 54.9%)
- EBITDA: ₦2.7 trillion (up 108.9%)
- EBITDA margin: 52.7% (up 13.6 percentage points)
- Free cash flow: ₦1.2 trillion (up 215.5%)
- Earnings per share: ₦53.07 (vs negative ₦19.05 in 2024)
- Final dividend: ₦15 per share (bringing total dividend to ₦20 per share)
Just a year ago, foreign exchange losses of over ₦925 billion had pushed the operator into deep negative retained earnings. By December 2025, retained earnings stood at ₦400.4 billion, while shareholders’ equity closed at ₦548.7 billion, fully restoring the balance sheet.
Just a year ago, foreign exchange losses of over ₦925 billion had pushed the operator into deep negative retained earnings. By December 2025, retained earnings stood at ₦400.4 billion, while shareholders’ equity closed at ₦548.7 billion, fully restoring the balance sheet.
Toriola says the balance sheet resilience was achieved through both operational strength and FX risk management.
“Our balance sheet resilience was driven by the robust performance of the business as well as a focused reduction in foreign currency exposure and financial discipline.”
Subscriber growth drives revenue expansion
The telco expanded its total mobile subscriber base to 87.3 million, adding 6.4 million new users in the year, representing 7.9% growth.
Active data users climbed 11.6% to 53.2 million, reinforcing MTN’s strategic pivot toward data-led growth.
Data traffic on the network surged by 34%, while average data usage per subscriber increased 20% to 13.1GB per month. Smartphone penetration rose to 66.1%.
Data revenue jumped 74.5% to ₦2.78 trillion, making it the largest contributor to service revenue. Voice revenue also grew strongly, up 42.1% to ₦1.85 trillion.
The structural demand for connectivity continues to accelerate across Nigeria’s digital economy, driven by video streaming, fintech adoption, enterprise cloud usage, and mobile-first commerce, according to the company.
Nigeria telecoms tariff hike impact becomes fully visible
The 2025 performance reflects the full annualisation of tariff adjustments approved in last year, when regulators allowed telecoms operators to adjust pricing structures amid soaring inflation, naira depreciation, and escalating energy costs.
While pricing elasticity concerns initially weighed on industry outlook, MTN Nigeria’s results indicate that demand remained resilient.
Voice revenue growth of 42.1% demonstrates that consumption volumes absorbed the pricing adjustments without significant subscriber churn.
The company’s medium-term guidance acknowledges this structural pricing shift.
“We maintain our target average service revenue growth of at least the low 20% as the impact of price adjustments becomes fully annualised by Q2 2026,” Toriola says.
Pro-tariff increase analysts note that the tariff recalibration helped restore margin sustainability across Nigeria’s telecoms sector after several years of cost compression driven by diesel prices, FX volatility, and spectrum costs.
MTN Nigeria EBITDA more than doubles
EBITDA rose 108.9% to ₦2.7 trillion, with margins expanding to 52.7%.
Cost containment measures, including renegotiated tower lease agreements and structural expense efficiencies, helped cushion inflationary pressures.
Combined savings from the IHS contract renegotiation and cost programmes generated ₦288.7 billion in savings during the year.
Operating expenses rose only 16.7%, significantly below revenue growth, highlighting operating leverage in the business model.
Foreign exchange stability changes equation
In 2024, MTN Nigeria posted a ₦925.4 billion net FX loss. In 2025, that swung to a ₦90.3 billion net FX gain.
The turnaround reflects:
- Settlement of outstanding letters of credit
- Reduction in foreign currency loans to US$105 million (from US$146 million)
- A more stable naira environment
The naira strengthened to ₦1,436 per US$ at year-end, compared with ₦1,535 in 2024. Headline inflation declined to 15.2% by year-end.
The company ended 2025 with a positive net cash position of ₦104.8 billion, compared to negative ₦719.5 billion in 2024.
Net debt-to-EBITDA stood at negative 0.1x, well below covenant limits.
Network investment: ₦1 trillion capex
MTN Nigeria more than doubled underlying capital expenditure (excluding leases) to ₦1 trillion, with capex intensity at 19.3%.
Investments focused on:
- Radio densification
- Capacity upgrades
- Spectrum optimisation
- FTTH rollout
- A new data centre
- Fixed Wireless Access expansion
Broadband coverage expanded to 91.2%, while 4G population coverage improved to 84.6%.
The company also secured a three-year spectrum lease agreement with T2 Mobile effective October 2025.
The structural demand for connectivity continues to accelerate across Nigeria’s digital economy, driven by video streaming, fintech adoption, enterprise cloud usage, and mobile-first commerce, according to the company.
Fintech and digital: Platform strategy gains traction
Fintech revenue rose 79.7%, while active MoMo wallets increased 30.8% to 3.7 million.
Customer deposits grew 156.1%, driving higher float income.
“These outcomes demonstrate the momentum in our fintech strategy and the significant value-creation potential of our platform,” the company states.
Enterprise revenue grew 7.7% overall and 22.7% excluding once-off USSD recognition effects.
MTN also commenced monetisation of its Dabengwa Data Centre and onboarded customers to its MTN Cloud marketplace.
Dividend resumes as shareholders return
Following the restoration of positive retained earnings, the Board has proposed a final dividend of ₦15 per share, bringing total dividend for the year to ₦20 per share, the company says.
This marks the resumption of dividend payments after suspension in 2024.
Toriola emphasises disciplined capital allocation. “Our capital allocation will remain disciplined, prioritising investments that protect our market leadership, support cash generation and align with our dividend policy,” according to him.
Taxes, infrastructure and national contribution
During the year, MTN Nigeria paid ₦878.7 billion in taxes and levies to government.
Through the Road Infrastructure Tax Credit Scheme, it continued rehabilitation of the 110km Enugu–Onitsha Expressway.
The MTN Nigeria Foundation committed ₦2.7 billion to youth empowerment and digital inclusion, while supporting the Federal Government’s 3 Million Technical Talent (3MTT) initiative.
Outlook: Margin Guidance Raised
For the medium term, MTN Nigeria:
- Maintains service revenue growth target of “at least low 20%”
- Revises EBITDA margin guidance upward to “mid to high 50%”
The guidance assumes:
- Inflation in mid-teens
- Exchange rate range of ₦1,400–₦1,700 per US$
Toriola notes that “we remain confident in our ability to adapt swiftly, capitalise on emerging opportunities and deliver sustainable long-term value for our shareholders while advancing inclusive digital progress across Nigeria.”
Nigerian telecoms sector implications
MTN Nigeria’s trillion-naira profit milestone signals a broader reset in Nigeria’s telecom economics after a turbulent FX-driven loss cycle.
The results suggest:
- Tariff reforms have restored pricing power.
- Data-led consumption growth remains robust.
- FX stability materially improves telecom profitability.
- Scale advantages continue to compound returns.
With 87.3 million subscribers, ₦5.2 trillion in revenue, ₦2.7 trillion EBITDA and ₦1.1 trillion profit, MTN Nigeria has decisively returned to earnings leadership, and reset investor expectations for Nigeria’s digital infrastructure economy.
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