Tariff Hike Boosts Market Capitalization Of MTN, Airtel By N5.5tn

Shares of MTN Nigeria Plc and Airtel Africa Plc have recorded a combined market capitalization gain of ₦5.51tn in the first eight months of 2025, following the federal government’s approval of a 50 per cent tariff adjustment for telecom operators.

The surge in investor confidence has lifted the two telecom giants’ combined valuation by 44.79 per cent on the Nigerian Exchange (NGX), underscoring bullish expectations for future earnings and improved profitability.

Checks by THE WHISTLER showed that MTN Nigeria emerged the biggest beneficiary, with its share price climbing from ₦200 in January to ₦435 at the close of trading on August 29.

This pushed its market capitalization from ₦4.20tn to ₦9.13tn, representing a gain of ₦4.93tn or 117.5 per cent year-to-date.

Airtel Africa also recorded strong investor inflows, with its stock price advancing from ₦2,156.90 to ₦2,310.50, driving its market value up by ₦577bn or 7.12 per cent, from ₦8.11tn to ₦8.68tn within the same period.

The Nigerian Communications Commission (NCC) had approved a 50 per cent tariff increase after extensive deliberations with stakeholders.

The adjustment was aimed at cushioning the impact of rising operational costs in the sector while ensuring sustainability and enabling continued investments in critical telecom infrastructure.

Market analysts say the decision has shifted sentiment, with investors now pricing in stronger revenue growth and profitability across the sector.

MTN Nigeria’s Chief Executive Officer, Karl Toriola, lauded the tariff adjustment and praised government stakeholders for their support.

“We deeply appreciate the Federal Government of Nigeria, the Honourable Minister of Communications, Innovation and Digital Economy, the NCC, and our industry bodies for their continued support in ensuring the telecoms sector remains sustainable,” Toriola said.

“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.”

Financial analysts at CSL Stockbrokers Limited project that MTN and Airtel are poised to deliver robust revenue and profit growth over the coming quarters.

They pointed to the dual impact of tariff hikes and cost reduction initiatives, as well as the strategy to localize debt in operating countries, which is reducing exposure to foreign exchange volatility.

Airtel Africa’s Q1 2026 results highlight this earnings momentum: revenue rose 22.4 per cent year-on-year to $1.42bn, while pre-tax profit jumped 268.9 per cent to $273m.

Similarly, MTN posted a revenue growth of 54.5 per cent year-on-year to ₦2.38tn in H1 2025, while pre-tax profit swung to ₦622.26bn from a ₦751.29bn loss a year earlier.

With improved financial performance and the anticipated resumption of dividend payments, analysts expect investor interest in telecom stocks to deepen further in the months ahead.

Sector watchers also believe the tariff policy has laid the foundation for renewed capital expenditure, improved service quality, and long-term sustainability of Nigeria’s telecom industry.

Tariff Hike Boosts Market Capitalization Of MTN, Airtel By N5.5tn is first published on The Whistler Newspaper