By Kingsley Ani
MTN Nigeria Communications Plc reported N5.20 trillion in revenue for the year ended 2025, the highest ever recorded in Nigeria’s telecommunications sector, up from N3.36 trillion in 2024.
The operator, which holds 51.87 percent of Nigeria’s 179.41 million active mobile subscriptions, nearly matched the industry’s total revenue of N5.30 trillion recorded in 2023, according to data from the Nigerian Communications Commission.
The company also restored positive retained earnings and shareholders’ equity and proposed a final dividend of N15 per share, following an interim dividend of N5 in September 2025, bringing total dividend for the year to N20 per share.
Karl Toriola, Chief Executive Officer of MTN Nigeria Communications Plc, said: “2025 marked a significant turning point in our business performance and resumption of dividend payments. In the period, we returned to profitability, generated stronger free cash flow, and restored positive retained earnings and shareholders’ funds.”
DECISION HIGHLIGHT
The performance inflection is closely linked to regulatory approval for market-reflective tariff adjustments granted on January 20, 2025.
Following the approval, the average price of 1 gigabyte of data rose to about N575 from N287.5. The pricing reset coincided with continued growth in data consumption and digital usage across Nigeria.
Revenue grew by 54.93 percent year on year, while profit after tax reached N1.11 trillion, reversing a loss of N400.44 billion recorded in 2024.
DECISION MEMO
The 2025 results reflect a telecom earnings recovery driven primarily by pricing reform and sustained data demand expansion.
The tariff adjustment materially altered revenue mechanics across the sector. With cost-reflective pricing in place after years of operator lobbying, MTN Nigeria Communications Plc was able to convert rising network usage into stronger topline performance.
Data has become the dominant earnings engine. It contributed 53.39 percent of total revenue and grew by 74.58 percent year on year, indicating continued migration of consumer activity toward internet-based services. Voice revenue also expanded by 49.54 percent, suggesting legacy services remain commercially relevant even as usage patterns evolve. Fintech revenue increased by 79.68 percent, reinforcing the operator’s diversification strategy.
Usage metrics support the demand narrative. Nigeria’s annual data consumption rose 35.7 percent to 13.25 million terabytes in 2025, while average monthly usage per subscriber increased to 89.42 gigabytes from 70.09 gigabytes in the prior year.
The company’s recovery also reflects improved macro conditions relative to the prior period. Earlier pressure from currency devaluation had reduced average revenue per user from $3.08 in 2023 to $1.89 in 2024. The combination of a more stable naira environment and tariff realignment appears to have eased part of that compression.
The dividend resumption signals restored balance sheet confidence. However, the durability of the earnings expansion will depend on sustained consumer demand elasticity under higher pricing and continued regulatory support for market-reflective tariffs.
DATA BOX
Revenue 2025: N5.20 trillion
Revenue 2024: N3.36 trillion
Revenue growth: 54.93 percent
Profit after tax 2025: N1.11 trillion
Loss 2024: N400.44 billion
Market share: 51.87 percent
Active subscriptions base: 179.41 million
Average 1GB data price: N575
Previous average: N287.5
Data revenue contribution: 53.39 percent
Data revenue growth: 74.58 percent
Voice revenue growth: 49.54 percent
Fintech revenue growth: 79.68 percent
Annual data consumption: 13.25 million terabytes
Growth in data traffic: 35.7 percent
Average monthly usage per subscriber: 89.42GB
Proposed final dividend: N15 per share
Interim dividend: N5 per share
Total dividend 2025: N20 per share
WHO WINS / WHO LOSES
Who wins:
MTN Nigeria Communications Plc shareholders through restored profitability and dividend payments.
Telecommunications operators benefiting from market-reflective pricing.
Digital service ecosystems leveraging increased data usage.
Who loses:
Price-sensitive consumers facing higher data costs.
Over-the-top communication substitutes competing with resilient voice revenues.
Operators unable to scale data monetisation effectively.
POLICY SIGNALS
The tariff approval marks a clear regulatory shift toward cost-reflective pricing in Nigeria’s telecommunications sector.
The decision suggests increased regulatory recognition of operator margin pressures linked to currency volatility and rising network costs.
The data also reinforces the sector’s positioning as critical national digital infrastructure.
INVESTOR SIGNAL
For equity investors, the results confirm MTN Nigeria Communications Plc’s earnings sensitivity to pricing policy and data demand trends.
The return to profitability, restoration of retained earnings and dividend resumption strengthen the company’s near-term investment profile.
Key forward indicators will include average revenue per user stability, subscriber growth quality and fintech monetisation depth.
RISK RADAR
Primary risk remains consumer elasticity under elevated data pricing.
Regulatory risk persists if pricing approvals face future review or political scrutiny.
Foreign exchange exposure remains structurally relevant for operators with dollar-linked cost bases.
Finally, competitive dynamics within the telecommunications sector could influence margin sustainability if pricing discipline weakens.
The 2025 outcome demonstrates the sector’s responsiveness to tariff reform. The medium-term trajectory will depend on demand resilience, regulatory consistency and continued digital usage growth.
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