Key Takeaways
- MTN Nigeria reported a profit after tax of N355.5bn in Q1 2026, a 165.9% increase year-on-year.
- The company expects a 1.8-2.0 percentage point decline in full-year EBITDA margins if diesel prices average N2,000 per litre in H2 2026.
- Diesel prices have risen due to tensions in the Middle East, with Dangote Refinery increasing its price to ₦1,800 per litre.
- Nigerian telecom operators consume over 40 million litres of diesel monthly, translating to more than 480 million litres annually.
MTN Nigeria has released its unaudited results for Q1 2026, revealing a significant increase in profit after tax. The company's profit after tax rose by 165.9% year-on-year to N355.5bn. However, MTN Nigeria has expressed concerns over the potential impact of rising diesel prices on its full-year Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margins.
The company's Chief Executive Officer, Karl Toriola, stated that MTN Nigeria is closely monitoring developments in the operating environment, including energy price volatility and regulatory dynamics. The rise in diesel prices is attributed to tensions in the Middle East, which have led to an increase in crude oil prices. Dangote Refinery has hiked its diesel price to ₦1,800 per litre, and other depots are selling at higher prices.
The Nigerian telecom industry is heavily reliant on diesel to power base stations due to the country's persistent grid instability. This translates to a substantial annual expenditure, with estimates suggesting that the industry spends over $350m on diesel annually. MTN Nigeria has increased its investment spending, with capital expenditure rising 92.8% year-on-year to N390.3bn.
The company's unaudited financial results for Q1 2026 show a pre-tax profit of N546.421 billion, a 169.64% increase year-on-year. The profit growth was driven by an impressive revenue growth of 42% year-on-year to N1,498 trillion, the highest quarterly revenue since 2019. Earnings per share increased by 166% to N16.95, which is nearly 30% of the 2025 full-year earnings per share.
Why This Matters
MTN Nigeria's significant profit growth in Q1 2026 is a positive indicator for the company's performance, despite the challenges posed by rising diesel prices. The company's ability to adapt to changing market conditions and invest in expanding its network capacity will be crucial in maintaining its growth trajectory.