MTN Nigeria recorded a profit after tax of N355.5 billion in the first quarter of 2026, representing a 165.9 per cent increase compared to the same period last year, even as the telecom giant cautioned that escalating energy costs could pressure earnings in the months ahead.
In its unaudited financial results released on Wednesday, the company projected a potential decline of between 1.8 and 2.0 percentage points in its full-year Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) margin if diesel prices average N2,000 per litre in the second half of the year.
MTN, Nigeria’s largest telecommunications operator with 89.5 million subscribers, runs over 20,000 base stations nationwide. Due to persistent instability in the national grid, the majority of these sites rely heavily on diesel-powered generators.
Chief Executive Officer, Karl Toriola, noted that the company remains watchful of shifts in the operating environment, particularly fluctuations in energy costs and regulatory developments.
The warning comes amid heightened volatility in Nigeria’s fuel market, driven by global crude oil disruptions and domestic supply constraints. In March, geopolitical tensions involving the United States, Israel, and Iran disrupted activities around the Strait of Hormuz, pushing crude oil prices above $100 per barrel and increasing global fuel import costs.
These pressures have filtered into Nigeria’s deregulated downstream sector, resulting in higher fuel prices nationwide. The Dangote Refinery recently adjusted its diesel price to N1,750 per litre, while pump prices at some independent stations have climbed to around N1,250 per litre in certain states.
MTN estimates that an average Lagos ex-depot diesel price of N2,000 per litre in the second half of the year would significantly impact its profitability.
Industry-wide, the dependence on diesel remains substantial. According to the State of Africa’s Infrastructure Report 2025 by the Africa Finance Corporation, telecom operators in Nigeria consume over 40 million litres of diesel monthly to power their networks. This amounts to more than 480 million litres annually, with estimated sector-wide spending exceeding $350 million.
Despite cost pressures, MTN significantly increased its capital expenditure during the quarter. Investment spending, excluding right-of-use assets, rose by 92.8 per cent year-on-year to N390.3 billion, up from N202.4 billion in Q1 2025.
The company said much of the investment was channelled into expanding network capacity and enhancing its fixed broadband offerings, including fibre-to-the-home deployments and fixed wireless access infrastructure.
