MTN Nigeria has reported a profit after tax of ₦355.5 billion for the first quarter of 2026, representing a 165.9% year-on-year increase.
In its unaudited financial results released on Wednesday, the telecom operator, however, warned of potential pressure on its margins due to rising energy costs. The company said it expects a 1.8 to 2.0 percentage point decline in full-year EBITDA margins if diesel prices average ₦2,000 per litre in the second half of the year.
Chief Executive Officer Karl Toriola noted that the company is closely monitoring developments in the operating environment, particularly energy price volatility and regulatory dynamics.
The warning comes amid rising global oil prices, with Dangote Refinery increasing diesel prices to ₦1,800 per litre, up from ₦1,750. This follows heightened geopolitical tensions involving the United States, Israel, and Iran, which have disrupted crude supply routes, particularly around the Strait of Hormuz.
Benchmark crude prices surged, with Brent crude trading at $124.9 per barrel, while West Texas Intermediate stood at $109.2 per barrel.
Domestic diesel prices have also climbed sharply. In Lagos, some depots sold diesel for as high as ₦1,980 per litre, while prices in other regions, including Calabar, Warri, and Port Harcourt, ranged between ₦1,950 and ₦2,050 per litre.
The telecom sector remains heavily dependent on diesel due to unstable electricity supply. According to the Africa Finance Corporation, operators consume over 40 million litres of diesel monthly, translating to more than 480 million litres annually and costing over $350 million.
Despite cost pressures, MTN Nigeria significantly increased its investment spending. Capital expenditure rose 92.8% year-on-year to ₦390.3 billion, largely driven by network expansion and improvements in broadband services, including fibre-to-the-home and fixed wireless access infrastructure.
The company also recorded a pre-tax profit of ₦546.4 billion, up 169.6% year-on-year, making it the second-highest quarterly profit since 2019, just below its Q4 2025 performance.
Revenue surged by 42% to ₦1.498 trillion, marking the highest quarterly revenue since 2019, while earnings per sharerose 166% to ₦16.95. Analysts note that if this performance is sustained, annual earnings per share could reach approximately ₦67.80, surpassing 2025 figures by about 30%.
