By Our Correspondent

National News – MTN Nigeria has reported a sharp rise in profitability, posting a profit after tax of N355.5bn for the first quarter of 2026.

The telecom giant announced the results on April 29, 2026, highlighting a 165.9 per cent year-on-year increase.

The growth was driven by expanded network investments, rising subscriber base, and improved service offerings across Nigeria.

However, the company warned that surging diesel costs could threaten its earnings outlook in the coming months.

Chief Executive Officer Karl Toriola said the company is closely monitoring energy price volatility and regulatory developments.

MTN operates over 20,000 base stations nationwide, most powered by diesel generators due to unreliable electricity supply.

If diesel prices average N2,000 per litre in the second half of 2026, the firm projects a 1.8 to 2.0 percentage point decline in EBITDA margins.

The rising fuel costs are linked to global and local factors. Disruptions around the Strait of Hormuz, caused by geopolitical tensions involving the United States, Israel, and Iran, pushed crude oil prices above $100 per barrel.

This has increased fuel import costs and affected Nigeria’s deregulated downstream sector, where diesel prices have climbed significantly.

Industry data shows telecom operators in Nigeria consume over 40 million litres of diesel monthly to sustain operations.

Annually, this exceeds 480 million litres, costing more than $350m.

Despite these challenges, MTN increased capital expenditure by 92.8 per cent to N390.3bn in Q1 2026, focusing on network expansion, fibre-to-the-home rollout, and improved broadband infrastructure.

Experts say the company’s performance reflects strong demand for telecom services but warn that energy instability remains a major operational risk.

How MTN manages fuel costs and infrastructure investments will determine its profitability trajectory for the rest of the year.