By CSL Research
In the first half of 2025, Nigerian telecommunications companies recorded larger profit growth, driven by a reduction in foreign exchange (FX) losses and the implementation of service tariff increases.
Operators reported a sustained rise in revenue, with MTN Nigeria leading the pack. MTN saw a 54.5% year-on-year (YoY) increase in total Revenue, which rose to N2.38trn, from N1.54trn in H1 2024.
Notable increases in data and voice services underpinned the growth. Data Revenue rose by 69.2% YoY, while Voice Revenue grew by 40.3% YoY. Airtel Africa also posted a strong rebound in its Q1 2026 financial results.
Revenue rose by 22.4% YoY to US$1.42bn, up from US$1.16bn in Q1 2025. The company attributed this growth to recent tariff hikes in Nigeria and sustained momentum in its Francophone Africa markets, where its customer-centric strategy is beginning to yield results. During the period, Data Revenue rose by 34.1%, while Voice Revenue increased by 11.9%.
Despite ongoing inflationary pressures and rising energy costs, both MTN Nigeria and Airtel Africa managed to keep their costs under control.
MTN reported a 16.8% year-on-year (YoY) increase in Direct Network Operating Costs, rising to N685.31bn in H1 2025 from N586.80bn in H1 2024.
This was lower than its Revenue growth rate. Operating Expenses also rose, but moderately, increasing 21.6% YoY to N491.84bn, up from N404.63bn in the same period last year.
Airtel Africa similarly kept costs in check, with Direct Network Operating Costs rising by 19.5% YoY to US$276m (Q1 2025: US$231m).
Operating Expenses increased by 13.7% YoY, reaching US$466m, up from US$410m in the previous year.
A major highlight of the period was the sharp reduction in foreign exchange (FX) losses, supported by improved Naira stability and more effective hedging strategies by telecom operators.
MTN Nigeria, in particular, benefited from renegotiated tower lease agreements, reporting FX losses of just N5.23bn, a dramatic 99.4% decline from N887.68bn in H1 2024.
This significant improvement played a crucial role in the company’s return to profitability, with Pre-tax Profit soaring to N622.26bn, reversing a N751.29bn Pre-tax Loss recorded in the same period last year.
Similarly, Airtel Africa recorded an FX gain of US$22m, a stark contrast to the US$136m loss reported in Q1 2025.
This turnaround was driven by the company’s strategy to localise its foreign debt exposure. As a result, Pre-tax Profit jumped to US$273m, marking a 268.9% YoY increase from US$74m.
Looking ahead, the outlook for Nigeria’s telecommunications sector remains positive. The industry appears to have emerged from its most challenging phase and is well-positioned for sustained profitability, supported by several key factors including continued growth in mobile subscriptions, the full revenue impact of recent tariff increases, ongoing expansion of 4G and 5G infrastructure, rising broadband penetration, and a broader shift toward a digitally driven economy.