MTN Nigeria reported a 55.3 per cent increase in profit after tax to N1.17 trillion for the nine months ended September 30, 2026, driven by higher data consumption, network expansion, and a stronger macroeconomic backdrop including easing inflation and a stabilized naira.
Telecommunications balance sheets across Africa are undergoing a fundamental transformation as traditional voice calling yields ground to surging digital connectivity. In Nigeria, operators are cashing in on an appetite for mobile data, streaming, and online transactions even as subscribers grapple with recurring network congestion and dropped calls.
Financial filings for the period ending September 30, 2026, reveal that MTN Nigeria recorded a 55.3 per cent increase in profit after tax to N1.17 trillion, climbing from N750.2 billion in the corresponding period of 2025. Service revenue across the nine months rose by 23.7 per cent to N4.6 trillion, while earnings before interest, taxes, depreciation, and amortization increased by 36.8 per cent to N2.6 trillion.
Across the wider Nigerian exchange, macroeconomic headwinds notwithstanding, MTN Nigeria Communications Plc and 21 other listed companies reported a combined N12.1 trillion profit before tax for the nine months ended September 30, 2026. This performance marked a 35.4 per cent year-on-year increase compared to the N8.94 trillion recorded during the same period in 2025.
Karl Toriola Details Volume-Led Growth and Network Capital Expenditure
Growth across the network is increasingly driven by volume. Karl Toriola noted that the expansion stems from a larger user base, deeper data adoption, and rising household demand for fixed-wireless broadband services.
Growth is increasingly volume-led, driven by more users, deeper data adoption, higher usage and rising demand for home broadband, supported by continued investment in network coverage, capacity and quality.
To support this demand, capital expenditure excluding leases reached N864.8 billion over the nine months, representing a 14.2 per cent increase over the prior year. Spending accelerated sharply in the third quarter, jumping 69.1 per cent to N243.9 billion. Smartphone penetration on the network reached 66.0 per cent as customers migrated to 4G- and 5G-capable devices.
Modupe Kadri Outlines Cash Generation and Dividend Payouts
Strong operating margins and disciplined capital allocation allowed the company to reward shareholders while funding its infrastructure rollout. Modupe Kadri reported that the company paid N860.8 billion in dividends for the FY 2025 final dividends and the FY 2026 interim dividends during the period alongside its heavy capital expenditure commitments.
Free cash flow climbed 57.5 per cent to N1.2 trillion, supported by higher earnings and improved working capital management. The company maintained a positive net cash position despite its capital outlay and dividend distributions.
Regulatory Scrutiny and Fintech Revenue Recovery
While traditional connectivity thrived, the fintech division experienced turbulence earlier in the year due to regulatory compliance adjustments. Following the temporary suspension of airtime and data credit advance services, fintech revenue rebounded in the third quarter to post ₦20.3 billion, a 56.15 per cent sequential surge over second-quarter levels as multi-partner lending models gained regulatory alignment.
At the same time, broader operational pressures drew parliamentary attention. The House of Representatives ad hoc committee investigating service quality, chaired by Olumide Osoba, issued arrest summons for telecommunications chief executives after operator representatives failed to address mounting subscriber complaints regarding call drops and poor data offerings.
| Financial Indicator (9M 2026) | Amount | Year-on-Year Change |
|---|---|---|
| Service Revenue | N4.6 trillion | +23.7% |
| EBITDA | N2.6 trillion | +36.8% |
| Profit After Tax | N1.17 trillion | +55.3% |
| Free Cash Flow | N1.2 trillion | +57.5% |
| Capital Expenditure (excl. leases) | N864.8 billion | +14.2% |
Against these operational headwinds, the broader macroeconomic environment offered relief. Inflation eased to 14.63 per cent as of September 2026 from 15.15 per cent in December 2025, while external reserves climbed to $54.9 billion and the naira strengthened against the dollar, helping operators absorb higher diesel-linked tower maintenance expenses.
As MTN Nigeria celebrates its twenty-fifth anniversary in the country, the company continues to refine its balance sheet and operational efficiency. Total borrowings have dropped significantly since December, while total equity recovered markedly from previous deficits. Management remains focused on sustaining volume growth, protecting operating margins, scaling home broadband services, and cementing the ongoing recovery in its digital and financial services.
Meanwhile, the wider digital ecosystem continues to adapt to evolving compliance frameworks. Regulatory approvals have been granted to various service providers for compliant airtime and data credit offerings, indicating a broader institutional push toward structured consumer credit mechanisms across the Nigerian market.
