Mirian Gom 
LAGOS, Nigeria – MTN Nigeria posted a staggering ₦355.5 billion profit in the first quarter of 2026, but rising diesel costs and persistent power challenges threaten to erode gains.
The telecom giant reported a 165.9% year-on-year jump in profit, driven by strong revenue growth to ₦1.498 trillion — its highest quarterly performance in years.
Yet, Chief Executive Karl Toriola warned that soaring energy prices could cut margins if diesel averages ₦2,000 per litre in the second half of the year.
The warning comes amid global oil volatility, with Brent crude surging above $120 per barrel following geopolitical tensions involving the United States and the Middle East.
Nigeria’s telecom sector consumes over 40 million litres of diesel monthly to power base stations, reflecting deep reliance on self-generated energy due to grid instability.
Industry data shows this translates to over 480 million litres annually, costing operators more than $350 million.
Despite these pressures, MTN ramped up capital investment by 92.8% to ₦390.3 billion, focusing on fibre expansion and broadband infrastructure.
Subscriber growth also remained strong, rising to 89.5 million users, with data consumption continuing to drive revenue.
Analysts say the results highlight a paradox: strong financial performance sustained by an increasingly fragile and costly energy environment.
About the Author
Korede Abdullah 
Oluwafunbi Bello 
Hussaini Ibrahim 