Nigeria’s Telcos Record Strong Profit Growth in 9M 2025 on Robust Revenues, Cost Control, and FX Gains
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 (YoY) increase in total revenue to N3.73trn in 9M 2025, up from N2.37trn 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% YoY and voice revenue expanding 41.9% YoY. Airtel Africa also delivered a strong rebound in its H1 2026 financial results, as revenue grew 25.8% YoY to US$2.98bn, from US$2.37bn in H1 2025. Growth was underpinned by robust performance in data and voice segments, with data revenue up 37.5% YoY and voice revenue up 14.5% YoY over the period.
MTN Nigeria reported a 15.4% YoY increase in Direct Network Operating Costs, rising to N1.04trn in 9M 2025, up from N902.08bn in 9M 2024, significantly lower than its Revenue growth rate. Operating Expenses also rose moderately by 27.3% YoY to N773.74bn (9M 2024: N608.01bn), 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 more slowly than the Revenue growth rate, increasing by 23.5% YoY to US$572m, up from US$463m in H1 2025. Operating Expenses also rose by 17.4%, reaching US$977m compared to US$832m 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 N55.58bn, a sharp turnaround from the N904.93bn 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 N1.13trn, compared to a Pre-Tax Loss of N713.630bn 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 N5.00 per share.
Airtel Africa posted a comparable improvement, recording an FX gain of US$90m in contrast to a US$260m 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$656m, a 268.5% year-on-year increase from US$178m 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.
Source: Proshare.co
