Nigeria becomes MTN Group’s largest profit driver after earnings surge

MTN Nigeria has overtaken MTN South Africa to become the biggest contributor to profits for MTN Group, marking a significant shift in the telecom giant’s earnings structure.

The Nigerian subsidiary more than doubled its profitability in 2025, according to MTN Group’s financial results released on Monday, signalling how rapidly Nigeria’s telecom market is reshaping the company’s revenue landscape.

MTN Nigeria reported $1.926 billion in Chief Operating Decision Maker earnings before interest, tax, depreciation and amortisation (CODM EBITDA) in 2025, up from $946.59 million in 2024.

The jump represents a 103.4% year-on-year increase, one of the most significant profit surges recorded across MTN’s key markets.

CODM EBITDA is a profitability metric used internally by MTN’s senior management to evaluate the performance of different operating markets. The figure measures earnings before interest, tax, depreciation, and amortisation, providing a clearer view of operational performance.

The surge in Nigeria pushed the market ahead of South Africa, which generated $1.048 billion in EBITDA during the same period.

For years, South Africa, MTN’s home market, had been the group’s most profitable operation. The latest figures suggest that the centre of gravity within MTN’s earnings structure is shifting toward West Africa.

Meanwhile, MTN Ghana also recorded strong growth. The Ghanaian unit posted $1.276 billion in EBITDA in 2025, up from $849.14 million in 2024, representing a 50.3% increase.

Together, the rapid expansion in Nigeria and Ghana has reshaped MTN’s internal profit ranking, pushing South Africa into third place and reinforcing West Africa’s growing importance to the group.

The data also shows the scale of Nigeria’s profitability. In 2025, the country generated nearly 84% more profit than South Africa, strengthening its position as MTN’s most valuable market.

However, the shift also increases MTN’s exposure to economic and regulatory conditions in Nigeria, as a larger share of the group’s financial performance now depends on developments in the country.

High profits but high operating costs

Despite its strong earnings growth, Nigeria remains one of the most expensive markets for MTN to operate.

Running telecom infrastructure in the country involves significant operational costs, largely due to unreliable electricity supply and security challenges.

Telecom operators in Nigeria rely heavily on diesel-powered generators to keep base stations running, which significantly increases network operating expenses. Companies must also invest in additional security for remote infrastructure and pay for expensive backhaul connectivity to maintain network stability.

As a result, MTN Nigeria’s network operating costs are considerably higher than those in South Africa.

In 2025, network operating costs in Nigeria reached $979.55 million, compared with $412.69 million in South Africa. This means the Nigerian operation is about 2.4 times more expensive to run.

The figures also highlight differences in operational efficiency between the two markets.

South Africa spends roughly 39 cents on network operations for every unit of EBITDA generated, while Nigeria spends about 51 cents to produce the same level of profit.

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This indicates that Nigeria’s profitability is driven primarily by its massive market size rather than cost efficiency.

Nigeria’s telecom scale drives MTN’s profit engine

Nigeria’s growing dominance in MTN’s earnings reflects the advantages of operating in Africa’s largest telecom market.

With a population of over 200 million people, rising smartphone adoption, and increasing demand for mobile data, the country has become a major revenue engine for telecom companies.

MTN currently controls about 51.7% of Nigeria’s telecom market, giving it a dominant position in the country’s digital ecosystem.

The surge in earnings is being driven by multiple factors, including increased data consumption, continued network expansion, and the growing adoption of fintech services such as mobile money.

These services are creating new revenue streams beyond traditional voice calls, allowing telecom operators to tap into Nigeria’s rapidly expanding digital economy.

Importantly, the data also reveals strong operating leverage in MTN Nigeria’s business model.

While EBITDA more than doubled between 2024 and 2025, the cost of running the network increased only slightly. Direct network costs rose from $933.43 million in 2024 to $979.55 million in 2025, representing a modest 4.94% increase.

This widening gap between revenue growth and operating costs suggests the Nigerian operation is becoming more profitable at scale, generating higher returns as data usage increases.

The development has major strategic implications for MTN.

With a growing share of profits coming from Nigeria, the company’s future performance is increasingly tied to the country’s economic environment, including exchange rate movements, regulatory policies and energy costs.

As MTN continues expanding across Africa, balancing the immense opportunities in Nigeria with the operational risks of its largest market will remain a key challenge for the telecom giant.