Nigeria’s telecom firms, MTN Nigeria Plc and Airtel Africa Plc, have added a sum of N21.99tn to their combined market value in nine months, even as a sell-off swept across several blue-chip stocks.
Their combined market capitalisation surged by 114.18 per cent to N41.25tn at the end of September 2026, buoyed by stronger earnings, rising investor confidence and improved revenue prospects following a major telecom tariff adjustment.
Analysis by THE WHISTLER showed that the combined market capitalisation of the two telecom operators increased from N19.26tn at the close of trading on December 31, 2025, to N41.25tn on September 30, 2026, representing a gain of N21.99tn, or approximately 114.18 per cent, within the nine-month period.
The rally was driven by renewed investor confidence in the telecommunications sector, supported by the approval of a 50 per cent tariff adjustment by the Nigerian Communications Commission (NCC), stronger financial performances and expectations of improved profitability across the industry.
Airtel Africa accounted for the larger share of the gains, adding approximately N15.15tn to its market value, while MTN Nigeria recorded an increase of N6.845tn over the period.
The performance of both stocks contrasted with developments across the broader equities market, where investors engaged in profit-taking in several banking, consumer goods and industrial stocks following months of sustained appreciation.
The gains in the telecom sector suggest that investors are increasingly positioning for improved earnings and stronger cash flows from operators following years of pressure from rising operating expenses, foreign exchange volatility, energy costs and regulated pricing.
Airtel Africa’s share price rose from N2,270 at the end of December 2025 to N6,300 on September 30, 2026, representing an increase of N4,030, or approximately 177.53 per cent.
The appreciation lifted the company’s market capitalisation from N8.531tn to N23.68tn, translating to an increase of about N15.15tn during the period under review.
MTN Nigeria also recorded a significant improvement in its stock market valuation, with its share price advancing from N511 to N837 between December 31, 2025, and September 30, 2026.
The increase of N326 per share represented a gain of approximately 63.8 per cent, pushing the company’s market capitalisation from N10.73tn to about N17.57tn and adding approximately N6.845tn to its market value.
Although Airtel Africa recorded the stronger percentage appreciation, both companies benefited from improved market sentiment surrounding the sector’s earnings prospects, particularly following the introduction of higher tariffs and the continued expansion of data consumption and digital services.
The NCC’s approval of a 50 per cent tariff adjustment marked a significant shift in the industry’s pricing environment after several years without a comparable major review.
The regulator had justified the adjustment on the grounds of mounting operational costs, the need to improve service quality and the importance of ensuring the long-term sustainability of telecommunications services in Nigeria.
For operators, the tariff adjustment is expected to support revenue growth and provide additional capacity to fund network expansion, improve service delivery and absorb some of the pressures associated with energy, infrastructure and other operating expenses.
The market’s response has also been reinforced by the financial results published by both companies, which showed improved profitability, resilient demand for telecommunications services and continued investment in network infrastructure.
MTN Nigeria records 70.6% rise in half-year profit
MTN Nigeria reported a 70.6 per cent increase in profit after tax to N707.5bn for the half year ended June 30, 2026, reflecting stronger revenue growth, improved operating performance and more efficient cost management.
The company’s service revenue rose by 25.9 per cent to N3tn, driven by sustained growth in voice and data services, while earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 39.2 per cent to N1.7tn.
The improvement in EBITDA lifted the company’s EBITDA margin to 55.9 per cent, indicating stronger operating profitability during the period.
MTN Nigeria’s earnings per share stood at N33.70, while free cash flow increased by 73.9 per cent to N712.7bn, strengthening the company’s capacity to finance capital expenditure, meet financial obligations and reward shareholders.
The operator also expanded its customer base, adding 4.9 million subscribers to reach 92.2 million. Active data users increased to 55.7 million, reflecting the continued importance of data consumption to the company’s revenue growth.
MTN Nigeria’s Chief Executive Officer, Karl Toriola, described the performance as evidence of sustained commercial momentum, improved profitability and robust cash generation.
He attributed the company’s stronger performance partly to naira appreciation and disciplined cost management, which helped offset pressures arising from energy-related expenses.
The company’s board approved an interim dividend of N26 per share, payable on September 7, 2026, providing an additional indication of its improved cash-generation capacity.
Despite a temporary decline in fintech revenue following the suspension of airtime and data credit services, MTN Nigeria recorded an 88.8 per cent increase in mobile money wallets to five million, underscoring the longer-term growth potential of its digital financial services business.
The company invested N620.5bn in capital expenditure during the half year to strengthen its network, improve service capacity and expand home broadband offerings. It also contributed N622.6bn in taxes and levies to the government.
Looking ahead, MTN Nigeria maintained its guidance for service revenue growth in the low-20 per cent range and EBITDA margins in the mid-to-high 50 per cent range.
The company said its priorities include accelerating broadband rollout, expanding fintech services, supporting enterprise digitalisation and increasing digital inclusion as demand for connectivity continues to grow.
These operational and financial developments have strengthened expectations that MTN Nigeria could sustain its earnings recovery, provided that cost pressures remain manageable and demand for its services continues to expand.
Airtel Africa posts stronger revenue and profitability
Airtel Africa also delivered a strong financial performance in the financial year ended March 31, 2026, recording a substantial increase in profitability, higher revenue and continued growth in its customer base.
The company’s profit after tax rose to $813m from $328m in the preceding year, while reported revenue increased by 29.5 per cent to $6.4bn.
Nigeria was a major contributor to the group’s performance, with revenue in the market growing by 47.5 per cent following strategic tariff adjustments and sustained demand for telecommunications services.
The results highlighted the increasing contribution of data services to Airtel Africa’s business, as changing consumer behaviour and wider smartphone adoption continued to reshape revenue generation across its markets.
