MTN Nigeria Posts N414.9 Billion Profit in H1 2025 as Telecom Sector Rebounds on FX Relief, Tariff Hike

Telecommunications giant MTN Nigeria has staged a dramatic financial turnaround in the first half of 2025, posting a net profit of ?414.9 billion, a 180% year-on-year improvement compared to a net loss of ?519.1 billion in H1 2024.

The company’s recovery was powered by the Central Bank of Nigeria’s (CBN) FX market harmonisation policies, a significant drop in foreign exchange losses, and the Nigerian Communications Commission’s (NCC) tariff adjustment, implemented earlier this year.

MTN’s foreign exchange losses plummeted by 99%, dropping from ?887.7 billion in the first half of 2024 to just ?5.2 billion in the same period this year, signaling a more stable currency market. Overall, revenue surged by 54% YoY to ?2.38 trillion, up from ?1.54 trillion in H1 2024.

Data Services Lead Growth

The company’s robust performance was primarily driven by data services, which saw revenue leap from ?726.6 billion to ?1.23 trillion, representing a 69% YoY growth. Voice and value-added services also made solid contributions. Operating profit climbed sharply by 193%, hitting ?892.8 billion compared to ?304.5 billion in the previous year.

MTN had previously reported a ?133.7 billion profit in Q1 2025, its first quarterly profit since 2023, which set the tone for this record-breaking half-year performance. In 2023, the company had posted a ?137 billion loss, primarily driven by naira devaluation.

Airtel Africa Joins the Comeback

MTN isn’t alone in the rebound. Airtel Africa also reported strong Q1 2025 results, with revenue rising 24.9% to $1.42 billion and net profit increasing 408.1% to $156 million, a sharp reversal from the $31 million posted in the same period last year. Airtel also achieved a net profit of $328 million, in contrast to a $89 million loss previously.

Airtel’s Nigerian operations—its largest market—recorded a 28.5% growth in revenue (naira terms), with data revenue up 38.1%, driven by a 47.4% surge in data usage and smartphone penetration hitting 45.9%. Airtel’s mobile money transactions reached $145 billion across its African markets in FY 2025.

FX Market Reform and NCC Tariff Boost

The telecoms’ resurgence is closely linked to monetary reforms by the CBN, which helped tame the exchange rate volatility that ravaged the industry in 2023 and 2024. Policies such as easing capital restrictions, increasing dollar liquidity, and tighter interest rates contributed to naira stability and reduced operational costs.

In February 2025, the NCC approved a 50% tariff hike—the first in a decade—allowing telecoms to cope with the rising cost of imported infrastructure and fuel post-subsidy removal. This move played a key role in MTN’s 40.5% service revenue growth in Q1 and Airtel’s 28.5% rise in its Nigerian segment.

Subscriber Growth and Infrastructure Push

MTN added 3.2 million new subscribers in Q1 2025, pushing its total user base to 84.1 million, well ahead of Airtel’s 57.6 million and Globacom’s 20.5 million. Across Africa, Airtel grew to 147.7 million users with 1.2 million new additions.

The telecom giants are also investing heavily in infrastructure. MTN’s capital expenditure jumped 159% to ?202.4 billion in Q1 2025, while Airtel deployed 2,300 new sites and 2,700 km of fibre. These expansions align with the government’s National Broadband Plan (2020–2025), which targets 70% broadband penetration by year-end.

MTN and Airtel are also leading the rollout of 5G services alongside Mafab Communications, pushing data adoption and enhancing Nigeria’s digital landscape.

Outlook: Sustained Growth, Consumer Challenges

While the sector’s resurgence offers a beacon of hope, analysts caution that balancing profitability and affordability will be crucial in Nigeria’s still-challenging economic environment. As operators expand digital and financial services, improving service quality and addressing consumer concerns will be key to long-term success.

Both MTN Nigeria’s 180% profit growth and Airtel Africa’s strong quarterly comeback signal renewed investor confidence and the telecom sector’s potential to fuel Nigeria’s digital economy transformation.