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MTN Nigeria delivered a strong start to 2026, with profit after tax more than doubling to ₦355.5 billion in the first quarter, up from ₦133.7 billion recorded in the same period last year. The performance was largely driven by rapid growth in data usage and digital financial services.
The telecom giant recorded a 41.8 per cent increase in service revenue, reaching approximately ₦1.5 trillion, supported by a growing subscriber base of 89.5 million. Active data users rose by 9.5 per cent to 55 million, reflecting sustained demand for connectivity.
Total revenue for the quarter stood at ₦1.50 trillion, highlighting a significant turnaround from the company’s loss position in 2024 and reinforcing its resilience amid ongoing macroeconomic pressures.
Chief Executive Officer, Karl Toriola, attributed the performance to disciplined execution, strong commercial momentum, and continued investment in network infrastructure. He noted that while inflationary pressures persisted, a relatively stronger naira helped cushion some of the impact.
Data remained the primary growth engine, with revenue surging 56.2 per cent to ₦827.2 billion. Increased smartphone penetration, now at 66.2 per cent, and rising consumption patterns pushed average data usage per subscriber to 14.3GB, while overall data traffic grew by 22.9 per cent.
Voice revenue also recorded growth, rising 22.5 per cent to ₦499.1 billion, supported by subscriber additions and pricing strategies. During the quarter, MTN added 2.3 million new subscribers, further strengthening its market position.
The company’s fintech segment emerged as the fastest-growing division, with revenue climbing 77.9 per cent to ₦64.2 billion. Growth in this segment was driven by increased adoption of digital financial services and higher interest income on customer balances.
However, regulatory changes impacted operations within the fintech business. MTN temporarily suspended its airtime and data credit service, Xtratime, following new compliance requirements under the Digital Consumer Lending Regulations 2025. The company noted that usage patterns have since begun to stabilise as customers adjust.
As part of its long-term strategy, MTN Nigeria plans to restructure its fintech operations by introducing MTN Group as a majority investor. The Group is set to acquire a 60 per cent stake in its fintech subsidiaries, while MTN Nigeria retains 40 per cent. The transaction is expected to strengthen capital efficiency and support future growth.
Operational efficiency improved during the quarter, with operating expenses rising at a slower pace than revenue. EBITDA increased by 68.1 per cent to ₦828.3 billion, while margins expanded to 55.3 per cent, reflecting strong cost management.
The company also significantly increased capital expenditure, investing ₦390.3 billion—nearly double the previous year’s level—to expand network capacity and improve service quality.
Free cash flow rose by 55.6 per cent to ₦326.5 billion, although cash reserves declined due to heightened investment activity.
Looking ahead, MTN Nigeria remains optimistic about sustained growth, underpinned by strong demand for data services and digital financial solutions. The company says it will continue to prioritise network expansion and customer experience as it positions itself to capture emerging opportunities in Nigeria’s evolving digital economy.
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