BTA2023 MTN Nigeria has overtaken MTN South Africa to become the largest profit contributor to MTN Group, marking a significant shift in the telecom giant’s earnings structure.
According to MTN Group’s 2025 financial results, the Nigerian subsidiary reported $1.926 billion in Chief Operating Decision Maker EBITDA, more than doubling from $946.59 million in 2024.
The 103.4% year-on-year increase represents one of the most dramatic profit surges across MTN’s key markets.
CODM EBITDA is the metric used by the group’s top executives to evaluate market performance before interest, tax, depreciation, and amortisation.
West Africa Becomes MTN’s Profit Engine
The surge in Nigeria pushed it far ahead of South Africa, where MTN generated $1.048 billion in EBITDA in 2025.
At the same time, MTN Ghana also delivered strong growth, with EBITDA rising from $849.14 million in 2024 to $1.276 billion in 2025, representing a 50.3% increase.
Combined, the strong performance in Nigeria and Ghana has shifted MTN’s financial centre of gravity toward West Africa, pushing South Africa into third place within the group’s internal profit rankings.
Scale Drives Nigeria’s Profit Boom
Nigeria’s profitability is largely driven by the massive scale of its telecom market, which has a population exceeding 200 million people and rapidly growing demand for mobile data and digital financial services.
MTN currently holds about 51.7% of Nigeria’s telecom market, benefiting from increased:
- Mobile data consumption
- Smartphone adoption
- Fintech and mobile money usage
The results also show a strong operating leverage effect. While EBITDA more than doubled, network operating costs increased only slightly—from $933.43 million in 2024 to $979.55 million in 2025, a 4.94% rise.
High Profits But High Operating Costs
Despite strong earnings, Nigeria remains one of the most expensive markets for MTN to operate.
Telecom infrastructure in the country requires heavy investment due to:
- Diesel-powered generators caused by unreliable electricity supply
- Security for remote telecom towers
- Expensive backhaul connectivity
In 2025, MTN Nigeria’s network costs reached $979.55 million, compared with $412.69 million in South Africa, making operations in Nigeria about 2.4 times more expensive.
Strategic Implications for MTN Group
Nigeria’s growing dominance has major strategic implications for MTN Group.
With such a large share of profits tied to a single market, the telecom giant is increasingly exposed to risks including:
- Currency volatility
- Regulatory changes
- Energy and infrastructure costs
To manage these challenges, MTN has begun taking steps to gain greater control over infrastructure, including its acquisition of assets from IHS Towers to reduce reliance on third-party tower providers.
For MTN, the Nigerian market now represents both its greatest growth opportunity and its biggest strategic risk, as the company’s future performance becomes increasingly tied to the country’s economic stability.
