MTN Nigeria’s powerful rebound in the first quarter of 2025 was led by a surge in data consumption, as data revenue jumped by 51.5% year-on-year, driven by higher smartphone penetration (now 60.7%) and a 29.5% increase in average data usage per user.
This stellar performance in the data segment underpinned a broader recovery, with Africa’s largest telecom operator posting a ₦133.7 billion profit after tax—a sharp reversal from a ₦392.7 billion loss a year earlier.
Service revenue grew by 40.5% to ₦1.0 trillion, and EBITDA rose 65.9% to ₦492.7 billion.
Data-Led Growth in a Resilient Market
Smartphones are reshaping MTN Nigeria’s future. The network added approximately 4 million new smartphones in Q1 2025 alone, lifting smartphone penetration to 60.7%. In parallel, data traffic soared by 46.4%, and average usage per subscriber climbed to 12.8GB per month, as consumers increasingly demand high-speed internet access.
This appetite for data—not just voice—underlines the shifting revenue dynamics, positioning MTN to benefit from Nigeria’s accelerating digital economy.
Sustained Investment to Drive Digital Expansion
MTN is aggressively investing to stay ahead of demand. Capital expenditure (excluding leases) surged by 159% year-on-year to ₦202.4 billion, aimed at boosting network capacity and service quality . Its 4G coverage now reaches 82.7% of Nigeria’s population, while 5G rollout continues to focus on capacity enhancements.
Importantly for investors, the company received regulatory approval for tariff adjustments during the quarter. Though most of the pricing changes took effect in March 2025, their full impact on revenue will be felt from Q2 onward.
Strengthening Finances Amid Macro Challenges
Despite inflation pressures and exchange rate volatility, MTN Nigeria strengthened its financial position:
Positive free cash flow of ₦209.9 billion was recorded even after stepped-up capex.
Net foreign exchange losses dropped dramatically to ₦5.5 billion from ₦656.4 billion in Q1 2024.
Net debt-to-EBITDA remains low at 0.5x, ensuring liquidity and balance sheet resilience.
Retained earnings improved meaningfully, and the company is on track to return to positive equity within 2025.
Investor Outlook: More Upside in 2025
MTN Nigeria’s management has reaffirmed guidance for at least mid-40% service revenue growth and an EBITDA margin in the mid-40% range for full-year 2025.
Data is expected to remain the key growth driver, amplified by:
Strong demand for high-speed broadband (through both mobile and fibre-to-home initiatives).
Deeper smartphone adoption across the population.
Rising average user data consumption.
Meanwhile, a recalibration of the fintech business and a new rural penetration strategy could reignite momentum in mobile money services.
Bottom Line
MTN Nigeria’s Q1 2025 performance sends a clear signal to investors: the company is increasingly becoming a data powerhouse in Nigeria’s fast-evolving digital economy. With expanding infrastructure, resilient demand, and improving financials, MTN is well-positioned for sustained growth and value creation in the quarters ahead
