MTN’s fastest-growing market comes with high costs, highlighting a key challenge in the telecom group’s 2025 earnings rebound.
Nigeria drove much of MTN Group’s growth last year, with revenue and profits rising sharply as demand for data and financial services expanded.
Operating in Nigeria, however, remains far more expensive than in markets like South Africa, mainly due to weak infrastructure and operational challenges.
Network costs in Nigeria reached $979.55 million in 2025, compared with $412.69 million in South Africa more than double underscoring the high cost of doing business there.
Despite these expenses, Nigeria has become MTN’s top profit contributor, thanks to the country’s large population of over 200 million and rapid adoption of digital services.
Group EBITDA climbed to approximately $5.91 billion (R98.5 billion), with Nigeria’s performance playing a major role.
Data usage surged across MTN’s network, while its mobile money platform processed transactions exceeding $500 billion, showing how digital services are increasingly central to the company’s revenue.
Ralph Mupita described MTN’s overall 2025 performance as “excellent,” but noted the company faces risks tied to its heavy reliance on Nigeria, including currency fluctuations, regulatory uncertainty, and high energy costs.
To address these challenges, MTN is working to improve cost efficiency and gain more control over its infrastructure.
Operating costs are pushed higher by unreliable electricity, forcing telecom operators to rely on diesel generators for base stations, as well as added expenses from security, maintenance, and connectivity issues especially in rural regions.
For MTN, the key challenge remains balancing Nigeria’s strong growth potential with the elevated costs of running its operations.