MTN Nigeria experienced a significant turnaround in the first quarter of 2025, posting a profit of N133.7 billion, a 134% increase compared to the N392.7 billion loss in the same period the previous year. This impressive recovery follows substantial financial distress in 2023 due to the devaluation of the naira, which led to a record loss and a negative net asset position for the company. The return to profitability offers relief to investors who had endured consecutive years of losses.

The improved financial performance was primarily driven by a 40.5% increase in revenue, reaching N1.1 trillion. A key factor contributing to this growth was the implementation of a 50% tariff increase in February 2025, endorsed by the Nigerian Communications Commission (NCC). This adjustment, covering voice calls, SMS, and data plans, helped alleviate the impact of the weaker naira on the telecom operator's operations. CEO Karl Toriola emphasized that the tariff increase is crucial for sustaining ongoing investments and maintaining service quality.

MTN Nigeria's strategic financial management also played a vital role in the turnaround. The company reduced its realized foreign exchange loss by 66% and reported N55 billion in unrealized foreign exchange gain, partially offsetting the significant losses from the previous year. Increased capital expenditure, amounting to N202.4 billion, was directed towards network investments to boost capacity and enhance user experience. The company also anticipates further improvements in coverage and efficiency through a passive infrastructure initiative in Nigeria, in collaboration with Airtel Africa.

Operationally, MTN Nigeria has expanded its subscriber base to 84 million, adding 3.2 million new users during the quarter. This growth has strengthened its position as Nigeria’s largest telecommunications player. Active data users also increased by 13% to 50 million, with data revenue consolidating its position as a top earner at N529 billion, surpassing voice revenue at N407 billion. Average data usage per user grew to approximately 12.8GB despite the tariff increase.

Other positive indicators from MTN's Q1 2025 results include a positive free cash flow of N209.9 billion and fintech revenue growth to N36 billion. However, challenges remain, such as the decline in active mobile money (MoMo PSB) wallets to 2.1 million and the negative shareholder fund of N324.6 billion, which may affect dividend declarations. Despite these challenges, analysts predict continued profitability for MTN in 2025, supported by loan restructuring, renegotiated tower lease agreements, and the tariff hike.

Notably, MTN Nigeria remained unaffected by a recent cyberattack on the MTN Group, ensuring uninterrupted service for its subscribers. This resilience further underscores the company's operational stability and commitment to safeguarding user data.