MTN Nigeria Communications Plc says it is marking a major turnaround in its financial performance, reporting a profit after tax (PAT) of ₦750.2 billion for the nine months ended September 30 2025, compared to a loss of ₦514.9 billion in the same period last year.
The telecoms giant says on Thursday that the strong rebound, which also restores its retained earnings and shareholders’ equity to positive territory, underscores a disciplined execution of its commercial and financial strategies amid an improving macroeconomic environment.
Karl Toriola, MTN Nigeria CEO, says the company’s return to profitability “demonstrates strong operational momentum and disciplined execution.”
MTN Nigeria’s subscriber base expanded 11% year-on-year to 85.4 million, while active data users grew by 12.8% to 51.1 million. Data traffic soars 36.3% as average usage per subscriber climbs 20.8% to 13.2GB, reflecting continued growth in digital consumption.
“We are pleased to report that MTN Nigeria has restored its positive retained earnings and shareholders’ equity positions. This is a significant milestone that demonstrates strong operational momentum and disciplined execution,” Toriola says.
He adds that the results reflect “our commitment to efficiency, prudent financial management and sustained investment in our network to improve quality of service in line with our commitment to customers and the government.”
MTN Nigeria: Dividend returns after years of strain
The improved results enable MTN Nigeria to announce an interim dividend of ₦5.00 per share, signalling a resumption of shareholder payouts after its first sustained period of losses linked to foreign exchange volatility and macroeconomic headwinds in prior years.
The company reports positive retained earnings of ₦142.7 billion, up from a negative ₦607.5 billion as of December 2024, while shareholders’ equity now stands at ₦293.1 billion, up from a negative ₦458 billion.
Total service revenue is growing by 57.5% year-on-year (YoY) to ₦3.7 trillion, supported by robust demand for data, strong growth in fintech revenues, and price adjustments.
Earnings before interest, tax, depreciation and amortisation (EBITDA) more than doubles, up 123% to ₦1.9 trillion, while the EBITDA margin expands by 15.1 percentage points to 51.4%, marking the company’s highest level in recent years.
Free cash flow increases by 38.5% to ₦742.6 billion, despite accelerated capital investments, as MTN Nigeria channels ₦757.4 billion (up 248%) into expanding its network infrastructure and broadband coverage.
Naira recovery, easing inflation aid results
MTN Nigeria’s results come as Nigeria’s macroeconomic indicators show signs of stability. The naira strengthened from ₦1,535 per dollar in December 2024 to ₦1,475 per dollar at the end of September 2025, while headline inflation declined from 34.8% to 18% in the same period.
According to Toriola, “macroeconomic conditions in Nigeria improved significantly, with the naira trending stronger, improved foreign exchange liquidity, and easing inflationary pressures.”
The Central Bank of Nigeria (CBN) also cut the Monetary Policy Rate (MPR) by 50 basis points to 27%, marking the beginning of monetary policy easing. Toriola says these conditions “represent a positive development for business activity and investor confidence.”
MTN Nigeria subscriber base surges past 85 million
MTN Nigeria’s subscriber base expanded 11% year-on-year to 85.4 million, while active data users grew by 12.8% to 51.1 million. Data traffic soars 36.3% as average usage per subscriber climbs 20.8% to 13.2GB, reflecting continued growth in digital consumption.
Smartphone penetration reaches 65.1%, while 4G population coverage remains stable at around 82%.
Data revenue increases 73.2% to ₦1.98 trillion, with voice revenue rising 41.9% to ₦1.35 trillion, fintech revenue growing 72.5% to ₦131.6 billion, and digital services up 41.9% to ₦71.2 billion.
The company’s home broadband business records strong uptake, adding 281,000 new customers in Q3 to reach a total of 4 million subscribers.
Further data highlights:
- Data revenue surged by 73.2 % year-on-year to ₦1.977 trillion.
- Data traffic rose 36.3 % while average usage per data subscriber climbed by 20.8 % to 13.2 GB.
- Smartphone penetration improved to 65.1 % of the customer base, with 4G population coverage at c. 82 %.
Toriola says, “Our home broadband business is gaining strong traction, reflecting the growing demand for high-speed connectivity and the relevance of our fixed wireless and fibre solutions.”
Toriola says, “In the final quarter of the year, our focus is on sustaining the strong momentum built in the first nine months. We will continue to execute with discipline, leveraging our broad revenue streams and strengthened balance sheet to navigate market dynamics and capture growth opportunities.”
Spectrum lease deal deepens network expansion
To support growing network demand, MTN Nigeria entered into a spectrum lease agreement with T2 Mobile (formerly 9mobile), effective October 1, 2025. The deal includes 5MHz frequency division duplex (FDD) in the 900MHz band and 15MHz FDD in the 1800MHz band, leased for three years.
The agreement forms part of a broader national roaming arrangement between both operators, allowing MTN Nigeria to “effectively manage increased network traffic from T2 and support overall industry sustainability through infrastructure sharing.”
“This partnership underscores our commitment to advancing digital inclusion across Nigeria,” Toriola notes.
Fintech operations gain momentum
MTN Nigeria’s fintech arm continues to record strong performance, with active wallets up 1.6% to 2.9 million and fintech revenue up 72.5%.
The operator says it is focused on scaling its fintech ecosystem sustainably, expanding agent and merchant networks, and developing new payment use cases.
Customer deposits rose 80.5% compared to December 2024, active agents grew 73.6%, and active merchants expanded by 42.6%, reflecting “deliberate focus on optimising distribution quality and building a more sustainable fintech ecosystem.”
According to Toriola, the fintech remains “a key area of opportunity that drives financial inclusion and long-term value.”
Network investment fuels service quality
MTN Nigeria increases its capital expenditure, excluding leases, by 248% to ₦757.4 billion, while total capex stands at ₦1.25 trillion, as the company accelerates deployment of network capacity, additional sites, fibre-to-the-home rollout, and a new data centre.
The company says the investment “ensures improved connectivity for our customers and continued compliance with quality-of-service imperatives,” while also supporting Nigeria’s broader digital and socio-economic growth priorities.
Despite this capex surge, MTN Nigeria’s cost of sales and operating expenses are well-managed. Operating expenses grow 16.4% year-on-year to ₦1.31 trillion, reflecting savings from renegotiated tower leases, naira strength, and ongoing efficiency drives.
Strong turnaround in financial metrics
MTN Nigeria’s financial turnaround is driven by both revenue growth and efficiency gains. Total revenue rose 57.4% year-on-year to ₦3.73 trillion, with Q3 alone contributing ₦1.35 trillion, up 62.8% from the same quarter in 2024.
EBITDA surges to ₦1.92 trillion, up from ₦860 billion, while profit before tax (PBT) soars to ₦1.13 trillion, reversing a ₦713 billion loss recorded last year.
Foreign exchange gains of ₦55.6 billion also provide a boost, compared to a net forex loss of ₦904.9 billion a year earlier.
Net finance costs increased 30.6% to ₦371 billion, mainly due to higher lease obligations under the company’s extended tower lease arrangements with IHS Towers.
MTN Nigeria’s balance sheet shows resilience, with a strong cash balance of ₦495.9 billion and healthy debt ratios. Net debt-to-EBITDA ratio is 0.1x, well below the 2.5x covenant limit, and interest cover is 18.9x, exceeding the covenant minimum of 5x.
The company repays ₦254.9 billion in naira facilities during the period, including all outstanding commercial papers, resulting in a 3.5 percentage point reduction in the effective cost of borrowing.
Creating shared value through community impact
Beyond its financial results, MTN Nigeria says it continues to drive social impact through its Foundation and corporate initiatives.
Through the MTN Nigeria Foundation, the company says it invested in programmes focused on youth empowerment, digital inclusion and national development.
Key initiatives include the MTN Skills Academy, the Anti-Substance Abuse Programme, and IT training for persons with disabilities. MTN also distributes over 25,000 learning materials to public schools across seven states and awards new scholarships in Science, Technology, Engineering and Mathematics (STEM) fields.
MTN Nigeria is also supporting the Federal Ministry of Communications, Innovation and Digital Economy’s 3 Million Technical Talent (3MTT) Programme, which aims to equip Nigerians with globally relevant tech skills.
Additionally, the company’s rehabilitation of the 110-kilometre Enugu–Onitsha Expressway under the Road Infrastructure Tax Credit (RITC) Scheme reached 50% completion. In July 2025, MTN Nigeria secured an additional ₦23 billion tax credit, to offset future tax liabilities beginning in 2026.
Toriola says these initiatives “reflect our commitment to building sustainable communities and driving shared value through inclusive growth.”
Enterprise and digital business expand
MTN Nigeria’s enterprise business grew 28.6%, driven by increased adoption of data and fixed connectivity solutions among businesses and government institutions.
The operator’s MTN Cloud platform, powered by the Dabengwa Tier 3 Data Centre, supports its enterprise ambitions, providing secure and scalable solutions for Nigerian enterprises.
Digital revenue rises 41.9% to ₦71.2 billion, supported by higher engagement with rich media content and platform optimisation that improves user experience.
Outlook: stronger finish ahead
MTN Nigeria says it remains confident of sustaining the momentum in the final quarter of 2025, guided by its strengthened balance sheet, diversified revenue streams, and ongoing digital transformation.
Toriola says, “In the final quarter of the year, our focus is on sustaining the strong momentum built in the first nine months. We will continue to execute with discipline, leveraging our broad revenue streams and strengthened balance sheet to navigate market dynamics and capture growth opportunities.”
The company maintains its full-year 2025 guidance of service revenue growth in the low-50% range and an EBITDA margin of at least low-50%, while capex intensity is expected to moderate within its “high-teens” target range.
For the medium term (2026 onwards), MTN Nigeria is targeting average service revenue growth of “at least low-20%” and an EBITDA margin between 53% and 55%, assuming stable inflation below 20% and exchange rates between ₦1,500 and ₦1,800 per dollar.
Toriola says MTN Nigeria’s strategy remains anchored on disciplined growth, financial inclusion, and long-term stakeholder value creation.
“While some macro uncertainties may remain, we are excited by the market’s strong fundamentals and the growth opportunities these present for us. We remain confident in our ability to deliver sustainable medium- and long-term value for our shareholders and broader stakeholders.”
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