RismadarVoice Reporters, April 30, 2026
MTN Nigeria has reported a profit after tax of N355.5bn for the first quarter of 2026, representing a 165.9 per cent increase year-on-year, even as the telecom giant warns that rising diesel prices could erode margins in the months ahead.
In its unaudited financial results released on Wednesday, the company projected a 1.8 to 2.0 percentage point decline 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.
Chief Executive Officer, Karl Toriola, said the company remains cautious amid persistent volatility in energy costs and the broader operating environment.
“We continue to monitor developments in the operating environment, including energy price volatility and regulatory dynamics,” he said.
MTN Nigeria, which serves about 89.5 million subscribers, operates more than 20,000 base stations nationwide, the majority of which rely on diesel-powered generators due to unreliable grid electricity.
The concern over rising costs comes against the backdrop of turbulence in the global oil market. In March, 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.
The impact has been felt in Nigeria’s deregulated downstream sector, with higher pump prices reported across the country. The Dangote Refinery recently adjusted diesel prices to about N1,750 per litre, while prices at some independent stations have climbed to around N1,250 per litre in parts of the country.
Industry data indicates that telecom operators in Nigeria consume over 40 million litres of diesel monthly to power network infrastructure, translating to more than 480 million litres annually and costing the sector an estimated $350m each year.
Despite cost pressures, MTN ramped up capital investment during the period, with expenditure rising by 92.8 per cent year-on-year to N390.3bn, compared to N202.4bn in the first quarter of 2025.
The company said the bulk of the investment was channelled into expanding network capacity and strengthening its broadband services, including fibre-to-the-home rollout and fixed wireless access infrastructure, as it seeks to sustain growth and improve service delivery.
