March 18, 2025/CSL Research
In 2024, Nigeria’s telecommunications sector saw mixed performances among its listed companies. MTN Nigeria sustained its revenue growth momentum, recording a 36.0% year-on-year (y/y) increase to ₦3.36 trillion, up from ₦2.47 trillion in FY 2023. In contrast, Airtel Africa eported a 5.8% y/y revenue decline in its 9M 2025 results (March year-end), with revenue falling to US$3.66 billion from US$3.88 billion in 9M 2024.
This decline was primarily driven by significant currency devaluations in key markets, including Nigeria, Malawi, and Zambia. MTN’s strong top-line growth was fuelled by data and voice revenue increases of 49.1% and 14.5% y/y, respectively. Meanwhile, Airtel saw declines of 2.8% in data revenue and 14.7% in voice revenue, largely due to these currency devaluations.
Operators in Nigeria’s telecommunications sector are grappling with rising operational costs, driven by high inflation, increasing energy prices, and currency devaluation, all of which are putting pressure on profitability. This impact is particularly evident in MTN Nigeria, where Direct Network Operating Costs surged by 88.1% y/y to ₦1.23 trillion in FY 2024, up from ₦655.2 billion in FY 2023. In contrast, Airtel managed its costs more efficiently, recording a slight 1.1% y/y decrease in Direct Network Operating Costs, which fell to $708 million in 9M 2025 from $716 million in 9M 2024.
Currency devaluation remains a major challenge for Nigeria’s telecom sector, with foreign exchange (FX) losses significantly impacting publicly listed operators. MTN Nigeria has been particularly affected, recording ₦925.36 billion in FX losses in 2024. To mitigate its FX exposure, MTN renegotiated tower lease agreements with IHS and ATC, securing more favourable terms. The revised leases are now primarily Naira-based, with a minimized US dollar-linked portion. Additionally, they are tied to a discounted US Consumer Price Index (CPI) with a cap on the Naira CPI escalator. The previous technology-based pricing model has been removed, and payments now focus solely on tower space and power for new upgrades.
These strategic adjustments helped MTN reduce its FX losses in Q4 2024, enabling the company to report a quarterly profit of ₦114.49 billion—a sharp turnaround from the ₦454.60 billion loss recorded in the same quarter of the previous year.
Airtel has also taken steps to mitigate its FX exposure by localizing its foreign debt, resulting in a sharp reduction in FX losses to US$153 million in 9M 2025, down from US$903 million in the previous year. This strategy significantly improved Airtel’s financial performance, with the company reporting a Net Profit of US$248 million—a remarkable turnaround from the US$2 million Profit recorded in 9M 2024. Looking ahead, we believe the worst is over for telecom operators, and we expect them to return to profitability in 2025. Our positive outlook is driven by several key factors, including: a steady recovery in mobile subscriptions, recently implemented tariff increases, expansion of 4G and 5G networks, rising broadband penetration and the ongoing transition from analog to digital models.
Click here to download full report: CSL Nigeria Daily – 18 March 2025- Telecoms .pdf
