November 4, 2025/CSL Research

In the first nine months of 2025 (9M 2025), Nigeria’s telecommunications sector recorded robust profit growth, supported by foreign exchange (FX) gains, slower cost escalation, and the full impact of recently implemented tariff increases. Industry-wide, operators posted solid Revenue growth, with MTN Nigeria leading the performance. MTN Nigeria reported a 57.4% year-on-year (y/y) increase in total revenue to ₦3.73 trillion in 9M 2025, up from ₦2.37 trillion in the corresponding period of 2024.

This impressive growth was driven by strong momentum across both data and voice services, with data revenue rising 73.2% y/y and voice revenue expanding 41.9% y/y. Airtel Africa also delivered a strong rebound in its H1 2026 financial results, as revenue grew 25.8% y/y to US$2.98 billion, from US$2.37 billion in H1 2025. Growth was underpinned by robust performance in data and voice segments, with data revenue up 37.5% y/y and voice revenue up 14.5% y/y over the period.

MTN Nigeria reported a 15.4% year-on-year (y/y) increase in Direct Network Operating Costs, rising to ₦1.04 trillion in 9M 2025, up from ₦902.08 billion in 9M 2024, significantly lower than its Revenue growth rate. Operating Expenses also rose moderately by 27.3% y/y to N773.74 billion (9M 2024: N608.01 billion), reflecting improved operational discipline supported by a relatively stable Naira, cost savings from revised tower lease agreements, and continued cost-efficiency initiatives.

Airtel Africa similarly kept costs in check, with Direct Network Operating Costs also rising slower than Revenue growth rate, increasing by 23.5% year-on-year to US$572 million, up from US$463 million in H1 2025. Operating Expenses also rose by 17.4%, reaching US$977 million compared to US$832 million in the prior year period.

A key highlight during the period was the substantial foreign exchange (FX) gains recorded across the telecommunications sector, supported by improved Naira stability and more effective hedging strategies implemented by operators. MTN Nigeria was a major beneficiary, following the successful renegotiation of its tower lease agreements, which contributed to an FX gain of ₦55.58 billion—a sharp turnaround from the ₦904.93 billion FX loss reported in 9M 2024.

This remarkable recovery was pivotal in driving the company’s return to profitability, as Pre-Tax Profit rose to ₦1.13 trillion, compared to a Pre-Tax Loss of ₦713.63 billion in the prior-year period. The stronger earnings performance enabled MTN Nigeria to restore positive retained earnings and shareholders’ equity. Reflecting its improved capital position, the company declared an interim dividend of ₦5.00 per share.
Airtel Africa posted a comparable improvement, recording an FX gain of US$90 million in contrast to a US$260 million loss in H1 2025.

This reversal was largely driven by the company’s debt localisation strategy, which reduced its exposure to foreign currency volatility. Pre-Tax Profit rose sharply to US$656 million, a 268.5% year-on-year increase from US$178 million in the same period last year. Looking ahead, the outlook for Nigeria’s telecommunications sector remains broadly positive for the remainder of 2025. The industry appears to have navigated its most challenging period and is now poised for sustained profitability.

Click here to download full report: CSL Nigeria Daily – 04 November 2025 – Telecoms .pdf​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​