MTN Nigeria has reported one of the strongest quarters in its history, signalling that the company's recovery from two years of currency and cost pressures has turned into a sustained growth trajectory. The country's largest telecommunications operator reported first-quarter service revenue climbing 41.8% year-on-year to N1.489 trillion, driven primarily by data, fintech, and voice services.

The telco posted a pre-tax profit of N546.4 billion, up nearly 170% year-on-year. After-tax profit came in at N355.5 billion, while earnings per share jumped 166% to N16.95. Investors responded immediately, with the company's stock rising over 6% in a single trading session, cementing its position as the most valuable listed company on the Nigerian Exchange.



Data Is Now the Business

The results confirm a structural shift that has been building quietly for several years. Data revenue for Q1 2026 reached N826.1 billion, against N450.7 billion from voice calls, making data nearly twice as large as voice within a single quarter.

This performance was supported by a 9.5% rise in active data subscribers to 55 million, smartphone penetration increasing to 66.2%, and stronger user engagement, with average monthly consumption climbing to 14.3GB per subscriber. MTN added 2.3 million revenue-generating subscribers during the quarter, bringing its total base to 89.5 million.

Fintech Surges Despite Lending Suspension

Fintech remained a fast-growing segment, with revenue up 77.9% to N64.2 billion. Excluding the temporary suspension of Xtratime following new consumer lending compliance requirements, core fintech revenue grew 190.6%, supported by stronger adoption of advanced financial services and higher deposit balances.

The Road Ahead

MTN Nigeria confirmed it is advancing the structural separation of its fintech subsidiaries, MoMo Payment Service Bank Limited and Y'ello Digital Financial Services Limited, through a proposed transaction with MTN Group Fintech Holdings. Under the deal, MTN Group Fintech will acquire a 60% stake while MTN Nigeria retains 40%, alongside a capital injection of N152.1 billion.

CEO Karl Toriola said the quarter demonstrated the strength of the company's execution model under pressure. The company maintains its medium-term guidance of at least low-20% average service revenue growth, though management acknowledged that energy costs and macroeconomic dynamics remain variables to watch closely into the second half of the year.