MTN Nigeria rebounded strongly to profitability in 2025 after two years of foreign exchange-induced losses, as improved naira stability, rising data consumption, and rapid growth in digital financial services boosted the telecom giant’s earnings.
The company posted a record pre-tax profit of about N1.7 trillion in 2025, reversing losses recorded in 2023 and 2024 when severe naira devaluation inflated its foreign currency obligations and eroded profitability.
Analysts who spoke during a recent Market Watch Podcast attributed the recovery to relative stability in the foreign exchange market and MTN’s increasing dependence on data and fintech revenues.
The telecom operator’s revenue rose sharply to N5 trillion in 2025 from about N2 trillion in 2022, underscoring sustained expansion in Nigeria’s telecoms and digital services market.
Financial analyst, Idika Aja, said foreign exchange volatility had previously weighed heavily on MTN’s earnings despite strong revenue growth.
According to him, the company recorded foreign exchange losses of about N950 billion in 2024, but reversed the trend in 2025 with an FX gain estimated at N99 billion. MTN also posted an FX gain of about N33 billion in the first quarter of 2026.
The volatility followed the liberalisation of Nigeria’s foreign exchange market in 2023, which exposed firms with dollar-denominated liabilities to steep losses. Analysts said improved currency stability in 2025 significantly eased pressure on MTN’s balance sheet.
Aja noted that data services had now overtaken voice calls as MTN’s largest revenue stream, reflecting changing consumer behaviour and increasing smartphone penetration.
Data revenue climbed to about N2.78 trillion in 2025, compared to voice revenue of roughly N1.8 trillion.
The momentum extended into 2026, with MTN reporting revenue of N1.5 trillion and pre-tax profit of N546.42 billion in the first quarter, representing a 169.64 per cent increase from N202.65 billion recorded in the corresponding period of 2025.
The Q1 performance marked the company’s second-highest quarterly pre-tax profit since listing on the Nigerian Exchange, behind the N569.59 billion recorded in the fourth quarter of 2025.
Analysts also pointed to MTN’s growing fintech operations as a key driver of long-term growth.
The company has continued expanding its mobile money platform, MoMo, as part of efforts to diversify beyond traditional telecom services into digital payments and financial services.
Chief Executive Officer of Finance with Muktar, Muktar Muhammed, compared MTN’s transition to Safaricom’s successful M-Pesa model in Kenya, which transformed the East African telecom operator into a dominant financial services player.
Muhammed said MTN’s MoMo business recorded profitability growth of 135 per cent during the review period, highlighting increasing adoption of mobile financial services in Nigeria.
“The shift towards data revenue and the MoMo platform has been a key factor in MTN’s growth,” he said.
MTN’s fourth-quarter 2025 results also reflected the earnings rebound, with pre-tax profit rising by 248.8 per cent to N569.6 billion from N163.3 billion in Q4 2024.
Following the release of its full-year results, the board proposed a final dividend of N15 per share, bringing total dividend payout for 2025 to N20 per share.
Analysts further noted that tariff increases introduced in early 2025 had little impact on consumer demand, as subscribers continued to maintain strong usage of mobile internet and digital financial services.
“The tariff has gone up fine and we are coping, and that did not even drop the usage,” Aja said.