MTN Nigeria has reported a profit after tax of N355.5 billion for the first quarter of 2026, representing a 165.9 per cent increase compared to the same period last year.
Despite the strong financial performance, the telecommunications company warned that rising energy costs, particularly diesel prices, could negatively affect earnings in the coming months.
In its unaudited Q1 results released on Wednesday, MTN Nigeria projected that its full-year Earnings Before Interest, Taxes, Depreciation and Amortisation margins could decline by between 1.8 and 2.0 percentage points if diesel prices average N2,000 per litre during the second half of the year.
The telecom operator, which serves about 89.5 million subscribers nationwide, relies heavily on diesel-powered generators to operate its more than 20,000 base stations due to unstable electricity supply across the country.
Chief Executive Officer Karl Toriola said the company is closely monitoring changes in the operating environment, especially fluctuations in energy costs and regulatory developments.
The warning follows growing instability in the global oil market caused by geopolitical tensions involving the United States, Israel, and Iran, which disrupted activities around the Strait of Hormuz and pushed crude oil prices above $100 per barrel.
The increase in global crude prices has contributed to higher fuel costs in Nigeria’s deregulated downstream sector, leading to rising diesel and petrol prices across the country.
Industry reports indicate that Nigerian telecom operators consume more than 40 million litres of diesel monthly to keep network infrastructure running because of persistent power supply challenges.
MTN Nigeria also significantly increased its investment spending during the quarter, with capital expenditure rising by 92.8 per cent year-on-year to N390.3 billion.
The company said much of the investment was channelled into expanding network capacity and strengthening broadband infrastructure, including fibre-to-the-home services and fixed wireless access projects.
