MTN Nigeria has reported a profit after tax of N355.5bn for the first quarter of 2026, representing a 165.9 per cent increase compared to the same period last year, even as the company warned that rising energy costs could pressure earnings in the months ahead.
In its unaudited financial results released on Wednesday, the telecom giant said it expects 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.
With a subscriber base of 89.5 million and more than 20,000 base stations nationwide, MTN Nigeria relies heavily on diesel-powered generators due to persistent challenges with grid electricity.
Chief Executive Officer, Karl Toriola, said the company remains cautious about the evolving business environment.
“We continue to monitor developments in the operating environment, including energy price volatility and regulatory dynamics,” Toriola stated in the Q1 report.
The warning comes against the backdrop of heightened volatility in global and domestic fuel markets. Disruptions linked to tensions involving the United States, Israel and Iran around the Strait of Hormuz pushed crude oil prices above $100 per barrel in March, increasing the cost of fuel imports.
In Nigeria’s deregulated downstream sector, the impact has been reflected in rising pump prices nationwide. The Dangote Refinery recently adjusted diesel prices, while fuel costs at independent stations have climbed significantly in several states.
“Based on an assumed average Lagos ex-depot diesel price of N2,000 in H2, we estimate a 1.8–2.0 percentage point impact on full-year EBITDA margin,” Toriola added.
Industry data underscores the scale of the challenge. According to the Africa Finance Corporation, Nigerian telecom operators consume over 40 million litres of diesel monthly to power base stations, translating to more than 480 million litres annually and costing the sector upwards of $350m.
Despite the cost pressures, MTN Nigeria significantly increased its capital expenditure during the quarter. Investment spending rose by 92.8 per cent year-on-year to N390.3bn, up from N202.4bn in the corresponding period of 2025.
The company said much of the investment was channelled into expanding network capacity and strengthening its fixed broadband footprint, including fibre-to-the-home deployment and fixed wireless access infrastructure.