It started with a simple click, a message sent, a video streamed, a payment made. From Lagos traffic to Kano markets, Nigerians are living more of their lives online than ever before.
Today, the nation’s appetite for data has exploded to a record 142.16 million active internet subscriptions, with 141.66 million of them on mobile devices.
Mobile subscriptions now stand at 169 million, while broadband penetration continues to surge, pushing the telecoms sector’s contribution to GDP beyond 14% and valuing it at approximately $10.8 billion.
Meanwhile, MTN Nigeria has posted an impressive financial performance for the first half of 2025, buoyed by strategic tariff adjustments, operational cost savings, and a favourable foreign exchange (FX) environment.
Speaking on the results during an interview on ChannelsTV monitored by Techeconomy, Modupe Kadri, chief financial officer of MTN Nigeria, highlighted the critical role that policy stability and efficiency measures have played in delivering growth.
Revenue Growth and FX Stability
For Q2 2025, MTN Nigeria reported revenue of ₦1.3 trillion and a pre-tax profit of ₦419.61 billion.
The telco also recorded a net foreign exchange gain of ₦295 million, a sharp turnaround from the ₦1 trillion FX loss reported in the same period last year.
This positive shift has been attributed to government-led foreign exchange reforms, increased oil production, and interventions that have stabilised the naira.
Kadri stressed that exchange rate stability is essential for long-term investment planning, particularly given the sector’s heavy reliance on imported infrastructure. “When policies are stable, we can plan, invest, and improve connectivity for Nigerians,” he said.
Beyond Tariff Increases: Efficiency and Cost Management
While recent tariff adjustments have supported revenue growth, Kadri explained that MTN’s rebound is also the result of a five-pronged strategy implemented in 2024.
This included reducing FX exposure by paying off letters of credit (LCs) and renegotiating tower contracts to cut operating expenses. The company has also streamlined operations to boost cost efficiency, further enhancing profitability.
Data Consumption Driving Sector Momentum
Kadri noted that demand for data continues to rise sharply, often surpassing voice services. In some cases, he joked, consumers would “choose to buy data rather than food.”
The shift towards internet-based calls through platforms like WhatsApp has not hurt the company’s bottom line; rather, it aligns with MTN’s positioning as a connectivity provider. “Whether it’s voice or data, our business is enabling connections,” he said.
However, he encouraged subscribers to manage their data usage more consciously, citing auto-download settings, background app activity, and navigation apps as hidden data drains. “It’s not the provider sucking your data,” he clarified, referencing regulator-led billing integrity studies that confirmed accurate charging.
Innovation Through Network-as-a-Service and MVNO Partnerships
MTN is also embracing new business models to expand industry capacity. Through its Network-as-a-Service (NaaS) platform, other operators, such as T2 (formerly 9mobile), can roam on MTN’s infrastructure while retaining their subscriber relationships.
This model, Kadri explained, promotes efficient use of scarce network resources and lowers barriers for new entrants.
In addition, MTN recently signed its first Mobile Virtual Network Operator (MVNO), which will soon go live. These collaborations, he said, align with the company’s vision to “help the industry” and deliver better services to Nigerians.
Outlook: Exiting Negative Equity
MTN Nigeria expects to maintain its growth trajectory into the second half of 2025, with the recovery that began in Q3 2024 gaining momentum.
The company projects it will exit its negative equity position this quarter, marking a significant milestone in its turnaround.
With its share price already up over 50% year-to-date, MTN’s strategic focus on efficiency, innovation, and policy alignment positions it, and the broader telecom sector, as a key driver of Nigeria’s economic health.
