MTN Nigeria crossed the N1 trillion revenue mark in the first quarter of 2025, recovering strongly from a position of loss last year, mainly by the phased implementation of a 50% tariff hike approved by the Nigerian Communications Commission (NCC) and early signs of exchange rate stability.
Telecom giant revenue for Q1 2025 rose 40.5% compared to the same period in 2024, according to non -financial financial results released Monday. The income company also posted after the N133.7 billion tax, reversing the loss of N392.7 billion recorded in the Q1 last year.
The improved income will come just months after the NCC provides operators to fix tariffs up 50%, one step that has caused a debate to entire industry circles but regulators have justified as needed for maintaining the telecom industry. For MTN, the adjustment began in mid-February and fully rolls through the entire data and voice of the March-meaning the whole effect is expected to be displayed in Q2.
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Despite just a few weeks of implementing the new pricing regime, the company reported early stability to customer demand.
“We started the phased implementation of the new tariff structure in mid-February … While the full impact on use and income is expected from Q2, early indicators suggest continued stability in customer demand, assisted by our targeted CVM initiatives,” said CEO Karl Toriola.
Surge to capital spending
Investments in the MTN network also spit in the quarter as it moved to comply with regulatory conditions tied to the tariff increase. The company spent N202.4 billion for capital expenditure (Capex), which represents a tedious 159% jump from the N78.1 billion that it deployed in the same quarter last year.
The NCC has requested that the telcos be ramping up infrastructure investments within three months of approval. Tobe Okigbo, the chief official of the corporate and sustainability officer of MTN Nigeria, mentioned earlier that “quality is better [of service]The more money you spend, ”adding that poor network quality also results in losses for operators.
Increasing expenditure appears to be matched by significant growth in network use. MTN has added 3.2 million new subscribers, growing its total base to 84.1 million. Active data users increased 2.6 million, lifting the customer's base of the data to 50.3 million-which helps driving a 46.4% year-to-year climbing data traffic.
“This growth is supported by our discipline approach to gross connections and churn management, as well as continuous change in customer value measures,” Toriola said.
Consolidation of macroeconomic environment
The MTN recovery is revealed against a rear of relatively stable macroeconomic indicators in Q1 2025. The company recognizes that even the uncertainty, the Naira dollar, which stabilizes N1,537 in the US dollar at the end of March, with a recalibrate consumer price index (CPI) and moder -inflation in 24.2%, given by the 24.2%. tailwinds.
The foreign exchange pressure pressure, accompanied by renegotiated terms of MTN lending to the IHS towers, helped prevent operational costs. The new rent deal has been reported that the company's forex exposure and capped price increases have reduced.
“As a result, the EBITDA rose by 65.9%, and the EBITDA margin expanded by 7.2 percent points to 46.6%, aligned with our guide,” Toriola said. He added that the stability of the exchange rate between December 2024 and Q1 2025 has helped reduce forex -related losses, which has contributed significantly to the company's losses last year.
Regulator's command
The NCC directive on tariff examination, released on January 20, is set up around the rising burden at the expense of operators. It referred to section 108 of the Nigerian Communications Act of 2003, which allows for a pricing under rare events.
The commission also made it clear that walking has responsibilities. Operators have been given a three -month window to show tangible improvements in service quality, with expectations that higher tariffs will be translated into better user experiences.
Industrial players have long complained about splashing margins due to inflation, forex volatility, and increasing energy costs, which motivates the fear that without price adjustments, investment in infrastructure and quality of service may worsen.
The MTN's response to this day is aligned with the NCC expectations – with Capex expansion, upgrading network capacity, and stable subscribers' growth as key indicators.
Response to the market
The company's strong Q1 display has caused a rebound in confidence to the investor. The MTN's sharing price, which suffered a 24.24% year-to-date loss in 2024, performed a return in 2025. On April 29, 2025, shares traded on the N240, up to 20% since the beginning of the year.
The rally reflects both earnings that are bouncing and broader markets around the impact of the tariff increase and improving forex conditions. For investors and analysts who asked the company's trajectory amid macroeconomic shocks and uncertainty in last year's regulation, Q1 2025 has issued reasons for modified confidence.
However, while MTN Nigeria's MTN Nigeria is significant, most of the heavy lifts are ahead. Analysts expect the full impact of new tariffs to play in Q2 and beyond. The implementation of NCC's service quality targets will also remain under thorough investigation as subscribers begin to expect the amount for the higher price they will pay today.
