MTN Nigeria is no longer just one of MTN Group’s important markets. It is its biggest revenue contributor.
The Nigerian operation generated approximately ₦2.97 trillion in service revenue during the first half of 2026, representing 30.6% of MTN Group’s ₦9.68 trillion total service revenue.
Its contribution to earnings was even larger.
MTN Nigeria accounted for 35.5% of Group EBITDA, delivering approximately ₦1.67 trillion during the six months ended June 30.
That performance puts Nigeria ahead of MTN’s other major operating markets and reinforces its role as a central growth engine for the pan-African telecoms group.
But the numbers also reveal a more complicated picture. Strong data growth and improved margins are being offset by rising energy costs, while the temporary suspension of airtime-advance services hit fintech revenue.
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Nigeria is growing faster than the Group
MTN Group reported service revenue of R115.3 billion, equivalent to about ₦9.68 trillion at the stated CBN exchange rate, for H1 2026.
On a reported basis, Group service revenue increased 9.7%. Adjusted for currency movements, growth was 17.5%.
Nigeria significantly outperformed those figures.
MTN Nigeria’s service revenue grew 25.7% in constant currency, while EBITDA climbed 38.7%.
Its EBITDA margin also expanded by 5.3 percentage points to 55.9%.
The contrast is striking:
- Group service revenue growth: 17.5% constant currency
- Nigeria service revenue growth: 25.7%
- Group EBITDA growth: 24.4% constant currency
- Nigeria EBITDA growth: 38.7%
- Group reported EBITDA margin: 47.1%
- Nigeria EBITDA margin: 55.9% constant currency
Nigeria therefore generated more than one-third of MTN Group’s EBITDA while producing less than one-third of its service revenue.
That points to a highly profitable growth market—even with some significant cost pressures.
Nigeria now carries more weight inside MTN
The Nigerian business was the largest contributor to Group EBITDA among the major markets disclosed by MTN.
For comparison:
- Nigeria: 35.5% of Group EBITDA
- Ghana: 24.5%
- South Africa: 15.2%
Nigeria’s service-revenue contribution was also substantially larger than that of the other individual major markets.
| Market | H1 2026 service revenue | Constant-currency growth |
|---|---|---|
| Nigeria | ₦2.97tn | 25.7% |
| Ghana | ₦1.86tn | 32.3% |
| South Africa | ₦1.84tn | 1.5% |
The Nigerian operation also approved an interim dividend of ₦26 per share, reflecting stronger earnings and cash-generation capacity.
Data is doing the heavy lifting
If there is one number that explains MTN Nigeria’s momentum, it is data.
Data revenue rose 38.2% in constant currency during the first half.
The company added 7.5 million subscribers, taking its customer base to 92.2 million. Active data users increased to 55.7 million, while smartphone penetration reached 66.4%.
Then came the biggest usage signal.
Network data traffic increased 25.8%, while average data consumption per subscriber rose 15.1% to 14.8GB.
That combination—more customers using more data—creates a powerful growth cycle for the operator.
It also creates a problem.
MTN needs to keep spending to prevent that demand from overwhelming network capacity.
More data means more investment
MTN Nigeria invested approximately ₦613 billion in capital expenditure excluding leases during H1.
Its capex intensity reached 20.6%, considerably higher than the Group’s overall 16.6%.
The spending is supporting:
- mobile-network capacity;
- broader coverage;
- rising data demand; and
- home broadband expansion.
MTN is also pushing deeper into fibre and fixed wireless access.
That strategy appears to be gaining traction. Across the Group, active home customers increased 58.2% year-on-year, while Nigeria was identified as MTN’s strongest market for fibre momentum.
The company expects Nigerian capex intensity to ease during the second half as some of the heavy investment cycle moderates.
But the network has an expensive appetite
This is where Nigeria’s growth story becomes less straightforward.
Around 95% of MTN Nigeria’s network is powered by diesel generators, leaving the business highly exposed to fuel prices.
Energy already accounts for more than 30% of operating expenditure.
MTN said average diesel costs were about ₦1,100 per litre during H1, while the second-quarter price used to determine third-quarter energy costs was below ₦1,800 per litre. Prices subsequently eased, but management continues to view fuel as a major risk.
The warning is significant: MTN estimates that diesel at ₦2,000 per litre could reduce its full-year EBITDA margin by roughly 1.8 to 2 percentage points.
So while data is producing more revenue, powering that data is becoming increasingly expensive.
Airtime advance temporarily weakened fintech
MTN Nigeria’s fintech business tells a different story.
Fintech revenue fell 8% in constant currency, primarily because airtime and data-credit services were temporarily suspended during the period.
The disruption reduced the eligible customer base by roughly one-quarter and, according to MTN, shaved approximately 3 percentage points off Nigeria’s service-revenue growth during H1.
Without the disruption, the company estimates service revenue growth would have reached 28.7% rather than 25.7%.
There is a more encouraging story underneath those figures.
MTN Nigeria’s mobile-money revenue jumped approximately 131.1%, while active wallets increased by 1.3 million to 5 million.
The airtime-advance service began a phased return in July through multiple approved vendors. MTN expects the customer base to rebuild progressively during the second half.
That recovery could provide another boost to Nigeria’s growth trajectory.
MTN’s wider fintech business is accelerating
Nigeria’s temporary fintech setback contrasts with strong momentum across MTN Group.
Group fintech revenue increased 13.3% in constant currency, while transaction value rose 33.8% to US$330.5 billion.
Other key indicators included:
- 70.8 million monthly active MoMo users, up 12.1%
- 13 billion transactions, up 17.2%
- 1.4 million active agents
- 2.3 million active merchants, up 18.1%
- 31.8% growth in advanced fintech services
- US$2.7 billion in lending transaction value, up 78.3%
The numbers reinforce MTN’s broader strategy of moving beyond traditional telecommunications into financial and digital services.
Voice is holding up—but data is taking over
Traditional voice has not disappeared from Nigeria’s growth story.
MTN Nigeria’s voice revenue increased 11.8% in constant currency, despite the long-term shift toward data-based communication and over-the-top messaging services.
Digital revenue also grew 20.9%.
At Group level, however, the structural shift is unmistakable.
Data revenue reached R57.6 billion, or approximately ₦4.84 trillion, during H1 and represented 49.9% of total service revenue.
It increased 29.2% in constant currency, compared with just 2.4% growth in voice revenue.
Data has effectively become MTN’s biggest engine.
Group profitability is improving
MTN Group’s EBITDA before once-off items rose to R55.99 billion, approximately ₦4.70 trillion.
That was a 24.4% increase in constant currency.
Nigeria supplied R19.87 billion, or approximately ₦1.67 trillion.
The Group’s overall reported EBITDA margin improved from 42.7% to 47.1%, while Nigeria’s margin reached 55.9% on a constant-currency basis.
MTN attributed Nigeria’s strong margin performance to several factors, including revenue growth, operating leverage, naira stability and VAT input claims.
But energy and tower expenses remain important risks for the remainder of the year.
Cash generation remains strong
MTN’s stronger operating performance translated into improved cash generation.
Operating free cash flow increased 27.5% to R25.1 billion, approximately ₦2.11 trillion.
Free cash flow reached R11.1 billion, or about ₦932.1 billion, while equity free cash flow climbed 32.7% to R7 billion.
MTN said operating companies upstreamed R13.9 billion in cash to the Group during H1. Nigeria contributed approximately R2.7 billion, equivalent to ₦226.7 billion.
Group net debt remained relatively low at 0.3 times EBITDA, while liquidity headroom stood at approximately R39.1 billion.
That balance sheet strength gives MTN additional room to keep investing while managing its broader portfolio.
MTN accepts condition on IHS transaction
Another major development emerged alongside the financial results.
MTN Group said it is comfortable with a condition imposed by Nigeria’s Federal Competition and Consumer Protection Commission as part of the approval process for its proposed acquisition of the remaining shares in IHS Towers.
The condition requires MTN to sell down up to 30% of the Nigerian component of the IHS business at market prices over time.
MTN said the remaining transaction conditions are primarily regulatory and that approvals have already been received in Nigeria and several other jurisdictions, with additional approvals still being pursued.
The proposed IHS transaction is strategically important because tower infrastructure is central to MTN’s network expansion and operating economics.
Nigeria’s next growth phase
MTN expects Group service-revenue growth to accelerate during the second half of 2026 as the airtime-lending business normalises in Nigeria and the impact of previous Nigerian price adjustments annualises.
For Nigeria, management continues to target at least low-20% service-revenue growth and an EBITDA margin in the mid-to-high 50% range.
The opportunity is clear.
More Nigerians are subscribing. Existing customers are consuming more data. Smartphone adoption is increasing. Home broadband is expanding. Mobile money is gaining traction.
But so are the costs.
MTN Nigeria’s next challenge is not finding growth. It is making that growth increasingly efficient.
The business is becoming more valuable to MTN Group precisely because Nigerians are using more digital services. The strategic question now is whether network investment, diesel expenses and regulatory disruptions can be managed well enough for that demand to keep translating into stronger cash generation.
For MTN Group, the H1 numbers provide a compelling answer so far: Nigeria is not merely participating in the growth story—it is increasingly driving it.