Nigeria’s telecommunications behemoths, MTN Nigeria Plc and Airtel Africa Plc, have staged a spectacular rally on the Nigerian Exchange (NGX), racking up a combined market capitalization gain of N5.51 trillion in the first eight months of 2025. The surge, which follows the federal government’s approval of a 50 per cent tariff adjustment for telecom operators, has cemented the sector as one of the year’s standout performers.
The policy shift, granted by the Nigerian Communications Commission (NCC) after months of industry lobbying, has triggered a seismic revaluation of the earnings prospects of telcos.
Investors are betting that the higher tariffs will not only offset spiraling operating costs but also restore profitability and support capital intensive network investments in Africa’s largest telecom market. MTN Nigeria has emerged as the prime beneficiary of the bullish sentiment.
Its share price more than doubled, soaring from N200 in January to N435 by August 29. The rally vaulted its market capitalization from N4.20 trillion to N9.13 trillion, delivering a staggering N4.93 trillion—or 117.5 per cent—gain year-to-date.
Airtel Africa also rode the wave of optimism, albeit at a more modest pace. The stock advanced from N2,156.90 to N2,310.50, adding N577 billion to its valuation and lifting its market cap to N8.68 trillion.
Together, the two operators now account for a commanding share of the NGX’s total market value, underscoring telecoms’ growing weight in Nigeria’s capital markets. Market watchers say the tariff hike has transformed investor perceptions. “Sentiment has shifted decisively. Investors are pricing in stronger revenue growth, fatter margins, and healthier balance sheets across the sector,” analysts at CSL Stockbrokers wrote in a recent note.
They pointed to a cocktail of tariff-led revenue expansion, cost-cutting drives, and the localization of debt to insulate against foreign exchange volatility as tailwinds for telecom earnings. The operators’ latest financials already reflect this momentum.
MTN’s half-year 2025 revenue surged 54.5 per cent to N2.38 trillion, while it swung to a pre-tax profit of N622.26 billion from a N751.29 billion loss a year earlier.
Airtel Africa reported a 22.4 per cent year-on-year revenue growth in Q1 2026 to $1.42 billion, with pre-tax profit leaping almost fourfold to $273 million. MTN Nigeria’s CEO, Karl Toriola, hailed the policy shift as a lifeline for the industry.
“This tariff adjustment represents an important step towards addressing the impacts of prevailing economic challenges on our business and industry. It will enable us to maintain the critical investments required to deliver reliable, high-quality services to Nigerians,” he said.
