MTN Nigeria market capitalisation surpasses N19tn on strong earnings outlook

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By Boluwatife Oshadiya

Key Points

• MTN Nigeria’s market value exceeds N19 trillion on NGX
• Share price hits all-time high of ₦915
• Q1 2026 earnings drive investor confidence
• Data and fintech segments power revenue growth

Main Story

MTN Nigeria Plc has crossed a historic milestone on the Nigerian Exchange (NGX), with its market capitalisation surpassing ₦19 trillion, driven by strong investor demand following a robust earnings performance.

The telecom giant’s share price surged to an all-time high of ₦915, representing an 11.6% gain within four trading sessions from an opening price of ₦820. The rally underscores renewed investor confidence in the company’s earnings trajectory and long-term growth outlook.

At this valuation, MTN Nigeria is trading significantly above its 52-week low of ₦240 per share, highlighting a sustained bullish trend that positions the stock as a potential hedge against Nigeria’s persistent inflationary pressures.

By the close of trading in April, the company’s valuation rose to ₦19.21 trillion, marking the highest level recorded on the NGX, supported by its 20.995 billion outstanding shares.

Q1 Earnings Drive Rally

Investor sentiment has been largely anchored on MTN Nigeria’s exceptional first-quarter performance for the period ended March 31, 2026.

According to its unaudited financial results, the company reported a 41.62% year-on-year increase in revenue to ₦1.498 trillion, up from ₦1.058 trillion recorded in the corresponding period of 2025.

Growth was broad-based across all revenue streams, with data services mainta ining their position as the largest contributor. Data revenue climbed 56.16% to ₦826.1 billion, reflecting increasing smartphone penetration and rising demand for broadband services in Nigeria.

Voice revenue rose by 27.63% to ₦450.7 billion, while SMS revenue increased by 40.38% to ₦54.6 billion. Meanwhile, the fintech and value-added services segment recorded the fastest growth, surging 78.77% to ₦64.1 billion.

The revenue expansion was partly supported by a 50% tariff adjustment implemented in February 2025, which continues to influence topline growth.

Profitability Strengthens Despite Cost Pressures

MTN Nigeria’s strong revenue performance translated into improved profitability, with profit from operating activities rising 84.50% to ₦632.3 billion from ₦342.7 billion in the prior year.

However, operating expenses also increased by 45.05% to ₦548.1 billion. The rise was largely driven by a 173.48% surge in employee expenses to ₦65.8 billion and an 86.96% increase in other operating costs to ₦103.4 billion.

A notable turnaround in foreign exchange performance further supported earnings, with the company reporting a net FX gain of ₦33.3 billion compared to a loss of ₦5.5 billion in Q1 2025.

Finance income grew significantly by 228.44% to ₦24.1 billion, while finance costs remained relatively stable at ₦143.3 billion. This led to a 38.68% reduction in net finance costs to ₦85.9 billion.

Consequently, profit before tax surged by 169.64% to ₦546.4 billion, while profit after tax rose by 165.93% to ₦355.5 billion. Earnings per share increased sharply to 16.95 kobo from 6.37 kobo recorded a year earlier.

What’s Being Said

Market analysts note that MTN Nigeria’s performance reflects strong operational efficiency and growing demand for digital services in Africa’s largest economy.

“The company’s earnings momentum is being driven by data consumption and fintech expansion, both of which remain key growth drivers in Nigeria’s telecom sector,” analysts say.

What’s Next

Investors will be closely watching whether MTN Nigeria can sustain its earnings momentum through 2026, particularly amid macroeconomic uncertainties, regulatory developments, and rising operating costs.

Continued expansion in broadband infrastructure and fintech services is expected to play a critical role in maintaining growth and shareholder value.