MTN Nigeria CEO, Karl Toriola

MTN Nigeria said it invested N1 trillion in network capacity in 2025, more than doubling its prior year capital expenditure.

The company’s CEO, Karl Toriola, disclosed this in its audited financial results for the year ended December 31, 2025, just released.

The steep jump in investment followed last year’s approval of a 50% increase in tariff for the telecommunications industry, with a condition that all telecom operators must deliver improved service quality to Nigerians.

The company also paid N878.7 billion in taxes and levies during the year, reinforcing its position as one of Nigeria’s largest corporate taxpayers.

According to the MTN CEO, the telecom giant deepened infrastructure rollouts to support rising data demand and improve service quality across the country.“

We more than double the investment in our network to N1 trillion in 2025 (2024: N443.5 billion), strengthening service quality and user experience in line with our commitment to our customers and the government, while positioning our business for growth in an increasingly data-driven market,” Toriola stated.

He added that the company also secured a three-year spectrum lease with T2 Mobile, effective 1 October 2025, as part of its national roaming agreement.

Toriola disclosed that the company grew its mobile subscriber base to 87.3 million during the period, adding 6.4 million new users.

Active data users rose to 53.2 million, up by 5.5 million year on year, as smartphone penetration and digital adoption continued to expand.

The structural demand for data was evident in a 34% surge in data traffic on the network, underpinning strong service revenue growth.

Overall service revenue climbed 55.1% for the year, while fourth quarter service revenue rose 49.3%.

On the back of topline growth and improved cost management, MTN Nigeria delivered a significant turnaround in profitability.

Earnings before interest, tax, depreciation and amortisation more than doubled, rising 108.9% to N2.7 trillion. EBITDA margin expanded by 13.6 percentage points to 52.7 per cent, in line with management guidance.

The company reported a profit after tax of N1.1 trillion, representing a 377.9% increase year on year and a sharp reversal from the N400.4 billion after tax loss recorded in 2024.

The return to profitability restored positive retained earnings and strengthened shareholders’ equity.

Free cash flow rose 215.5 per cent to N1.2 trillion, underscoring what management described as robust underlying cash generation, even as capital expenditure accelerated in line with quality of service and long-term growth objectives.

On January 20, 2025, NCC approved a long awaited 50% increase in the cost of calls,data, and SMS.

The average cost of 1GB of data rose from N287.50 to N431.25. However, advertised rates place the average cost of 1GB at N587.50.

The operators also increased the cost of SMS from N4.00 to N6.00, reflecting the 50% approve by the regulator.

This marked the first major adjustment in telecom pricing in over a decade, as operators had long argued that rising inflation, forex shortages, and energy costs were eroding their margins.

According to the Chairman of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, the 50% tariff increase approval granted last year, saved the industry from collapse.

By Samson Akintaro

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