MTN Nigeria posted a profit after tax of N355.5 billion in the first quarter of 2026, a 165.9 % increase year‑on‑year, according to the company’s unaudited results released on Wednesday. The telecom operator warned that a rise in diesel prices to an average of N2,000 per litre in the second half of the year could reduce its full‑year EBITDA margin by 1.8 to 2.0 percentage points.
Chief Executive Officer Karl Toriola said the company is closely monitoring “energy price volatility and regulatory dynamics” as part of its operating environment assessment. The warning follows a recent diesel price hike by Dangote Refinery to N1,800 per litre, up from N1,750, after the refinery halted loading amid heightened Middle‑East tensions. Brent crude closed at $124.9 per barrel (+5.82%) and West Texas Intermediate at $109.2 per barrel (+2.18%) on Thursday.
Market data show diesel prices at independent stations reaching about N1,250 per litre in several states. In Lagos, Swift and Duport sold diesel at N1,980 per litre, while TMDK offered it at N1,950. Depots in Calabar, Warri and Port Harcourt reported prices ranging from N1,985 to N2,050 per litre.
Nigeria’s telecom sector relies heavily on diesel for power generation. According to the Africa Finance Corporation’s State of Africa’s Infrastructure Report 2025, operators consume over 40 million litres of diesel each month to run base stations, reflecting persistent grid instability. Annual sector consumption exceeds 480 million litres, with spending estimated at more than $350 million.
MTN’s capital expenditure, excluding right‑of‑use assets, jumped 92.8 % year‑on‑year to N390.3 billion in Q1, driven by network expansion and the rollout of fibre‑to‑the‑home and fixed wireless access. The company recorded a pre‑tax profit of N546.421 billion, up 169.64 % YoY, and revenue of N1.498 trillion, a 42 % increase and the highest quarterly figure since 2019. Earnings per share rose 166 % to N16.95, representing nearly 30 % of the 2025 full‑year EPS.
Key financial indicators for the quarter include a 5.77 % decline in direct networking operating costs to N317.893 billion, a modest rise in finance costs to N143.269 billion, and a net foreign‑exchange gain of N33.304 billion, reversing a loss of N5.525 billion a year earlier. Total assets grew 8.25 % to N5.849 trillion, while cash and cash equivalents fell 19.89 % to N506.716 billion.
The results underscore MTN’s strong operational performance but highlight exposure to fuel price fluctuations that could affect profitability in the latter half of 2026.
