MTN Nigeria sees remarkable turnaround as net income soars by 180% in H1 2025

Telecoms giant, MTN Nigeria, has experienced an impressive financial recovery in the first half of 2025. The company reported a net income of N414.9 billion, a staggering 180% year-on-year (YoY) increase compared to a N519.1 billion net loss in H1 2024. 

This turnaround was driven by a drastic reduction in foreign exchange (FX) losses and robust revenue growth, owing largely to the Central Bank of Nigeria’s (CBN) market harmonisation policies and the NCC’s approval of new tariffs.

MTN’s FX losses dropped from N887.7 billion in H1 2024 to just N5.2 billion in H1 2025. The 99% reduction reflects the market’s improved currency stability. It also reported a revenue turnover of N2.38 trillion, a 54% YoY increase from N1.54 trillion in H1 2024.

Data services led the charge, with revenue soaring from N726.6 billion to N1.23 trillion, a 69% jump. Voice and value-added services also contributed to the robust performance. Operating profit skyrocketed by 193% to N892.8 billion, up from N304.5 billion in H1 2024. 

MTN Nigeria’s Q1 2025 results, which showed a profit of ₦133.7 billion, its first since 2023, mark a significant recovery from a ₦392.7 billion loss in the same period last year and set the stage for an end-of-the-year’s success.

Similarly, Airtel Africa reported a strong financial performance in its Q1 2025 (April-June 2025) results. The company recorded a 24.9% revenue increase to $1.42 billion, driven by mobile money, data and subscriber expansion.

Its profit surged by 408.1% to $156 million, a significant recovery from the $31 million recorded in Q1 2025, which was impacted by FX losses in Nigeria. Airtel also recorded a net profit of $328 million, a sharp contrast from the $89 million loss recorded in the previous year.

Like MTN, Airtel benefited from Nigeria’s improving economic environment. The company’s Nigerian operations, its largest market, saw a 28.5% revenue growth in naira terms.

Data revenue grew by 38.1%, supported by a 47.4% spike in data usage and increased smartphone penetration to 45.9%. Airtel’s mobile money segment also thrived, with transactions reaching $145 billion in FY 2025.

CBN’s monetary policies and MTN Nigeria, Airtel’s revenue turnaround 

The CBN’s monetary policies have been instrumental in stabilising Nigeria’s telecom sector. Naira’s volatility, exacerbated by devaluations in 2023 and 2024, had previously inflicted heavy FX losses on telecom operators.

MTN Nigeria, for instance, reported a N137 billion loss in 2023, largely due to currency devaluation. However, the CBN’s efforts to stabilise the FX market in 2025, including easing capital restrictions and increasing dollar liquidity, have significantly reduced these losses.

The apex bank’s hawkish stance, including higher interest rates, has also helped curb inflation, which hit a three-decade high in 2024.

This stability has lowered operational costs for telecoms, particularly for imported equipment and fuel, which had surged following the removal of fuel subsidies. By Q3 2024, net forex inflows into Nigeria fell slightly to $14.46 billion. But the improved FX environment has allowed telecoms to better manage their dollar-denominated liabilities.

The Nigerian Communications Commission (NCC) approved a 50% tariff hike in February 2025, the first in a decade. This adjustment addressed the rising operational costs telecoms faced amid high inflation and naira devaluation.

The tariff hike directly boosted revenue, as evidenced by MTN’s 40.5% YoY service revenue growth in Q1 2025 and Airtel’s 28.5% revenue increase in Nigeria.

Telecoms subscriber growth and infrastructure investment

MTN Nigeria added 3.2 million subscribers in Q1 2025, bringing its total to 84.1 million, far ahead of Airtel’s 57.6 million and Globacom’s 20.5 million. Airtel also saw subscriber growth, adding 1.2 million users to reach 147.7 million across its African markets

Both companies have invested heavily in infrastructure. MTN’s capital expenditure rose 159% to N202.4 billion in Q1 2025, while Airtel expanded its network with 2,300 new sites and 2,700 km of fibre.

These investments align with Nigeria’s National Broadband Plan (2020-2025), which aims for 70% broadband penetration by 2025. The rollout of 5G services by MTN, Airtel, and Mafab Communications has further driven data demand, with 4G coverage reaching 74.7% for Airtel and similar gains for MTN.

MTN Nigeria’s 180% net income surge and Airtel Africa’s robust Q1 2026 performance underscore the telecom sector’s resilience. The CBN’s FX stabilisation and the NCC’s tariff hike have been critical catalysts, enabling operators to recover from naira devaluation losses and invest in growth. 

However, balancing profitability with affordability remains a challenge in Nigeria’s tough economic climate.

As MTN and Airtel expand their digital and financial services, they are well-positioned to drive Nigeria’s digital economy forward, provided they address consumer concerns and maintain service quality.