After years of financial upheaval caused by macroeconomic volatility and significant foreign losses, MTN Nigeria is exhibiting signs of a strong return in 2025.

The corporation has turned a new page, reporting a Q1 profit after tax N133.7 billion, its second straight quarter in the red, suggesting that the worst may have passed.

Between 2022 and 2024, the telecoms corporation endured the impact of Nigeria’s currency rate unification policy, which resulted in a significant depreciation of the naira and cost MTN more than N2 trillion in forex losses.

Investor confidence dropped after the business reported cumulative losses of N728 billion and suspended dividend payments due to regulatory constraints on distributions from retained losses.

Now it looks like a turnaround is underway. MTN produced more than N1 trillion in revenue in just the first quarter of 2025, the most in a single quarter in company history.

Voice and data sectors were particularly important, with consumer usage increasing in tandem with rate changes implemented in February.

The complete financial impact of these modifications is still unknown, but early indications point to a sustained improvement in topline performance.

More than increasing income, MTN has concentrated on tightening its operations. Margins increased, expenses were controlled, and the business renegotiated lease terms with IHS Towers, lowering its exposure to dollar-linked liabilities.

These internal changes resulted in a 66% increase in EBITDA and an EBITDA margin of 46%, suggesting a better grasp on profitability despite concerns about inflation and infrastructure expenditures.

Perhaps the most significant shift is in its foreign exchange status. Currency depreciation losses, which had been the largest drag on its books, fell considerably to N5.5 billion in the first quarter, down from N695 billion in the same period the previous year.

This dramatic decline is attributed to a combination of better FX stability and MTN’s risk measures.

The scars from the last two years are still obvious. Despite its return to profitability, the corporation has accrued a deficit of N474.1 billion, ruling out any near-term dividend distributions.

However, if MTN maintains its present profit growth, it may be able to recoup these losses by the end of the year, allowing it to reward shareholders again.

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As MTN explores boosting its financial situation, speculation about a prospective capital offering has grown. While the firm has always relied on debt and internal cash flows to fund operations, present conditions may encourage a strategic change towards equity financing, particularly if it helps decrease obligations or fund future expansion.

MTN’s return to profitability is far from done, but the path is clear; higher revenues, increased efficiency, and much-needed FX relief are setting the framework for a more robust and confident telecoms giant.