After two years in the red, MTN Nigeria has returned to profitability, posting a profit after tax of ₦133.7 billion ($102.85 million) for the first quarter of 2025. This marks a dramatic turnaround from the ₦392.7 billion ($302.08 million) loss recorded during the same period in 2024.
The latest unaudited financials signal the telecom giant’s strongest quarterly performance in recent times, buoyed by a rebound in service revenue, strategic price adjustments, and renewed investor confidence. MTN, which serves approximately 84.1 million subscribers, had ended 2024 with a total revenue of ₦3.36 trillion, despite reporting a ₦400.44 billion loss after tax for the full year.
Driving the recovery was a 40.5 per cent surge in service revenue to ₦1.05 trillion in Q1 2025. Data services accounted for ₦529.44 billion—comfortably outpacing voice revenue at ₦407.41 billion. The company also ramped up capital expenditure, excluding leases, by 159 per cent to ₦202.4 billion, signalling its renewed commitment to network improvement and expansion.
MTN Nigeria’s CEO, Karl Toriola, attributed the rebound to the company’s strategic resilience and operational discipline. “We are pleased with our performance in the first quarter of 2025, which reflects the continued execution of our strategic priorities and the resilience of demand for our services,” he said.
Toriola explained that the company’s recent tariff adjustments had created room for accelerated investment in infrastructure. Though the full impact of these price changes is expected to reflect more significantly in the second quarter, early trends suggest customer demand remains strong, boosted by targeted customer value management initiatives.
Still, the company faces considerable challenges. Retained earnings remain in the negative at ₦607 billion ($466.9 million), potentially delaying any dividend payouts. Inflation, hovering at 28.3 per cent, continues to weigh on operational costs and squeeze profit margins. Additionally, a pending class-action lawsuit over alleged data mismanagement looms, posing both financial and reputational risks.
Nevertheless, analysts are optimistic about MTN Nigeria’s outlook. With improved forex liquidity, a broadened 5G rollout, and the anticipated public offering on the horizon, the telecom firm is targeting mid-40 per cent growth in service revenue and EBITDA margins through the remainder of 2025.
The results mark a much-needed vote of confidence in Nigeria’s telecom sector, especially at a time when the industry is under pressure to deliver better quality service amid rising operating costs and shifting regulatory expectations.
