By Ayomide Otitoju
MTN Nigeria reported a profit after tax of ₦355.5 billion in the first quarter of 2026, representing a 165.9 per cent year-on-year increase, driven by strong revenue growth and foreign exchange gains.
In its unaudited financial results released on Wednesday, the telecom operator said it expects a potential 1.8 to 2.0 percentage point decline in full-year EBITDA margins if diesel prices average around ₦2,000 per litre in the second half of the year.
Chief Executive Officer Karl Toriola said the company is closely monitoring energy price volatility and regulatory developments affecting its operations.
“We continue to monitor developments in the operating environment, including energy price volatility and regulatory dynamics,” he said.
The outlook comes amid rising diesel prices, with Dangote Refinery increasing its ex-depot price to ₦1,800 per litre on Thursday following heightened geopolitical tensions in the Middle East. Brent crude rose to $124.9 per barrel, while West Texas Intermediate (WTI) traded at $109.2 per barrel.
Market data showed diesel prices had already risen across major depots, with Lagos prices ranging between ₦1,950 and ₦1,980 per litre, while Port Harcourt recorded as high as ₦2,050 per litre.
MTN noted that Nigerian telecom operators consume over 40 million litres of diesel monthly to power base stations due to unreliable grid electricity, translating to more than 480 million litres annually and estimated industry spending exceeding $350 million.
Despite cost pressures, MTN’s performance was supported by strong revenue growth. Revenue rose 42 per cent year-on-year to ₦1.498 trillion, the highest quarterly figure since 2019. Profit before tax also surged 169.64 per cent to ₦546.42 billion.
Earnings per share increased by 166 per cent to ₦16.95, while capital expenditure rose sharply by 92.8 per cent to ₦390.3 billion, largely driven by network expansion and fibre deployment projects.
Key financial highlights include:
Revenue: ₦1.498 trillion (+41.62% YoY)
Profit after tax: ₦355.5 billion (+165.93% YoY)
Profit before tax: ₦546.42 billion (+169.64% YoY)
Capex: ₦390.3 billion (+92.8% YoY)
Subscribers: 89.5 million (+6.5%)
Active data users: 55 million (+9.5%)
The company said continued investment in network capacity and fixed broadband expansion remains central to its growth strategy, even as rising energy costs pose pressure on profitability margins.
