By Ranti Thomas
MTN Nigeria has closed the latest financial period with a solid profit performance but rising operating expenses especially diesel costs are beginning to cast a shadow over its outlook.
The telecom operator recorded a profit after tax of about ₦355.5 billion, supported mainly by sustained growth in data consumption and expanded digital service usage across its subscriber base.
Revenue from core operations continued to rise as more customers relied on mobile internet services, reflecting Nigeria’s ongoing shift toward digital communication and online platforms.
Despite the strong earnings, the company highlighted a growing concern around energy costs, which remain a major component of its operating expenses due to unreliable grid electricity.
MTN explained that it depends heavily on diesel-powered generators to keep its base stations running nationwide, a necessity that has become increasingly expensive.
The company warned that continued increases in diesel prices could significantly affect profitability in the coming quarters, even if revenue growth remains steady.
Analysts say this challenge is not unique to MTN, as many telecom operators in Nigeria face similar pressure from fuel-driven operational costs.
Industry data suggests that energy expenses now account for a large share of network maintenance spending, especially in areas with weak or unstable power supply.
MTN’s performance also reflects stronger demand for connectivity services, driven by remote work, online education, and digital financial transactions.
However, the balance between rising income and escalating operational costs remains delicate, with fuel price volatility emerging as a key risk factor.
As the company looks ahead, attention will be on how it manages infrastructure costs while sustaining growth in a highly competitive telecom market.