MTN Nigeria’s Chief Executive Officer, Karl Toriola, noted that the company’s growth was bolstered by strategic customer value management (CVM) initiatives. “We maintained a disciplined approach to gross connections and churn management while continuously innovating our customer offerings. This has supported our strong performance,” he said.
Lagos, Nigeria – MTN Nigeria has reported a remarkable turnaround in its financial performance, posting a profit after tax of N133.7 billion in the first quarter (Q1) of 2025, compared to a loss of N392.7 billion recorded in the same period last year.
This marks a strong return to profitability, driven by a significant rise in revenue and a rebound in operational efficiency.
The telecommunications giant saw its revenue hit the N1 trillion mark in Q1, reflecting a 40.5% year-on-year increase from Q1 2024. The company attributed this surge to a recent tariff adjustment approved by the Nigerian Communications Commission (NCC), which began a phased rollout in mid-February 2025. Most of the tariff increases took effect in March, and while the full financial impact is expected to be more evident in Q2, early signs point to sustained customer demand.
MTN Nigeria’s Chief Executive Officer, Karl Toriola, noted that the company’s growth was bolstered by strategic customer value management (CVM) initiatives. “We maintained a disciplined approach to gross connections and churn management while continuously innovating our customer offerings. This has supported our strong performance,” he said.
In line with regulatory conditions for the tariff adjustment, MTN significantly ramped up its infrastructure spending. The company invested N202.4 billion in capital expenditures during the first three months of the year — a 159% increase compared to the N78.1 billion spent in Q1 2024. This investment aims to improve service quality, a key demand from the NCC tied to its approval of the 50% tariff increase.
Subscriber growth also played a vital role in the company’s performance. MTN added 3.2 million new subscribers in Q1, bringing its total subscriber base to 84.1 million. Additionally, its active data users grew by 2.6 million, reaching 50.3 million. Data traffic saw a 46.4% year-on-year increase, reflecting greater usage and a shift toward digital consumption.
The NCC had on January 20, 2025, approved a 50% tariff adjustment for telecom operators to help cushion rising operational costs and ensure the sustainability of the industry. The regulatory body, in a statement by its Director of Public Affairs, Reuben Muoka, emphasized that telecom operators were required to enhance service quality within three months of implementation.
Addressing stakeholders at a recent forum, MTN Nigeria’s Chief Corporate Services and Sustainability Officer, Tobe Okigbo, reiterated the company’s commitment to rapid infrastructure upgrades. “The NCC expects service quality improvements within three months, but we aim to beat that timeline. Better service quality benefits everyone — customers and operators alike,” Okigbo stated.
MTN also benefited from improved macroeconomic conditions. The company highlighted relative stability in the naira, which stood at N1,537/US$ as of March 2025, and a moderated inflation rate of 24.2% following the rebasing of Nigeria’s Consumer Price Index (CPI) in January. These factors contributed to reduced forex losses and improved financial performance.
Further cushioning cost pressures, MTN renegotiated its lease agreement with IHS Towers, effectively lowering its foreign exchange exposure and limiting price hikes. These measures, alongside internal cost-efficiency initiatives, helped lift the company’s EBITDA by 65.9%, expanding its margin by 7.2 percentage points to 46.6%.
Following a challenging 2024, MTN Nigeria’s shares have also staged a comeback. As of April 29, 2025, its share price climbed to N240, representing a year-to-date gain of 20%, a stark contrast to the 24.24% YtD loss recorded last year.
Join our Channel...