MTN Nigeria Reports N1.1 Trillion Annual Profit, Ending Two Years of Losses

MTN Nigeria has reported a remarkable N1.1 trillion in post-tax profits for the year 2025, effectively breaking free from a streak of two years of losses that began in 2023. This downturn was primarily caused by extensive currency reforms in Nigeria that severely impacted earnings and put the company’s balance sheet into the red.

The return to profitability was heavily supported by a 50% tariff increase introduced by the industry regulator in February, aimed at aiding telecommunications companies affected by the depreciation of the naira.

This recovery not only improved earnings but also propelled MTN Nigeria, a subsidiary of Africa’s largest mobile service provider, MTN Group based in Johannesburg, to achieve record revenues totaling N5.2 trillion.

Revenue from data services was particularly vital, accounting for over half of the total revenue, which saw a significant increase of 54.9% compared to the previous corresponding period.

In 2025, MTN expanded its active data customer base to 53.2 million, which reflects an 11.6% growth in users. Overall, the total number of subscribers rose by 7.9% to reach 87.3 million.

The announcement is expected to bring joy to shareholders who have endured two years without cash dividends. Traditionally, MTN Nigeria distributes dividends biannually.

On Thursday, the company revealed a dividend per share of N15, which translates to a total payout of N314.9 billion for its stakeholders this year.

In 2023, MTN Nigeria faced a net loss of N133.8 billion, largely due to the adverse effects of foreign exchange fluctuations on its operations, following drastic currency reforms in the country that significantly reduced the naira's value.

A major one-off devaluation of the naira in early 2024 further exacerbated the situation, leading to an after-tax loss of nearly N400 billion that year and increasing its negative net asset position to N458 billion.

The massive foreign exchange losses amounting to approximately N1.7 trillion that plagued the company's performance during those two years have since been offset, with the company now reporting a net foreign exchange gain of N90.3 billion owing to more stable exchange rates.

According to the latest audited financial statements, the company’s shareholders’ equity has now improved to N548.7 billion as of the end of last year, with the EBITDA margin rising from 39.1% to 52.7%.

Karl Toriola, CEO of MTN Nigeria, emphasized that the company’s robust performance and a strategic focus on reducing foreign currency exposure and maintaining financial discipline played essential roles in restoring its balance sheet.

Recently, the MTN Group entered into an agreement to acquire IHS Towers, its longtime tower infrastructure partner, for $6.2 billion, indicating a move to take the New York-listed company private upon completion of the transaction.

Investment bank Meristem Securities noted that the future impact of the acquisition on MTN could be mixed rather than distinctly positive or negative. They added that once IHS is fully integrated, future lease payments might come with improved concessions or pricing at the group level, which would be beneficial for the EBITDA.

For the period under review, MTN recorded a pre-tax profit of N1.7 trillion, contrasting sharply with a pre-tax loss of N550.3 billion from the previous year. Profit after tax stood at N1.1 trillion, in stark contrast to a loss after tax of N400.4 billion recorded for 2024.