After suffering a major loss in early 2024, MTN Nigeria made a remarkable recovery as the telecommunications giant reported a profit after tax of N133.7 billion in the first quarter of 2025, reversing a N392.7 billion loss recorded in the same period last year.
So, how did MTN pull this off? Okay.ng breaks down the key factors behind this financial turnaround and what it means for the company and its subscribers.
1. Massive Capital Investment
MTN Nigeria ramped up its capital expenditure to N202.4 billion in Q1 2025, marking a 159% increase year-on-year. Including right-of-use assets, total capex climbed to N436.4 billion, up 142.8% from Q1 2024.
These investments focused on:
- Expanding 4G and 5G network infrastructure
- Upgrading service quality
- Supporting the growth of data, voice, fintech, and digital platforms
Okay.ng understands this aggressive investment strategy was aimed at improving user experience and supporting future revenue growth.
2. Sharp Drop in Forex Losses
One of the biggest drags on MTN’s 2024 performance was foreign exchange (forex) losses.
In Q1 2025, however, forex-related expenses dropped by 99.2%, thanks to a more stable naira and improved currency management.
This significantly boosted the telco’s bottom line, turning a previous liability into a financial strength.
3. Surge in Revenue from Data and Fintech
MTN’s service revenue grew by 40.5%, reaching N1.05 trillion in Q1 2025. Key drivers of this growth included:
- Data revenue up by 51.5%
- Fintech revenue up by 57.9%
This reflects the rising demand for mobile internet, digital payments, and MoMo wallet services across Nigeria.
4. Strong Subscriber Growth
MTN Nigeria’s customer base continued to expand:
- Total subscribers: 84.1 million
- Active data users: 50.3 million
- MoMo wallets: 2.1 million
The network also saw a boost in smartphone penetration, now at 60.7%, helped by the addition of 4 million new smartphones to the network.
5. Improved Network Coverage and Efficiency
Key improvements in infrastructure include:
- 4G population coverage reaching 82.7%
- Enhanced network capacity and stability
- Better customer experiences across both rural and urban areas
Despite the record-level capex, MTN recorded a positive free cash flow of N209.9 billion, even though it was down 54.8% due to higher spending.
MTN Nigeria’s Q1 2025 results show how smart investment, digital growth, and operational discipline can drive a strong comeback. With expanding coverage, rising revenue, and declining forex risk, MTN is well-positioned to sustain momentum throughout the year.
