MTN Nigeria growth is driven by rising data usage, expanding 4G coverage, and strong financial performance, boosting shares and investor confidence

MTN Nigeria Communications Plc is poised for continued growth as surging mobile data demand and expanding digital adoption drive revenue and investor optimism, analysts at CardinalStone have said.

Also read: MTN Nigeria Posts Spectacular N1.1 Trillion Profit

The firm reaffirmed a Buy rating on the telecom operator, projecting an 18.1% potential upside in its share price, citing robust operational performance and market conditions.

In a report titled “MTNN: Structural Data Demand Driven Growth,” CardinalStone highlighted the telecom’s expanding data segment as a key growth engine.

Total data consumption in Nigeria rose to 1.39 million terabytes in 2025 from 973,455.35 terabytes in 2024, reflecting the increasing role of digital services in the economy.

The analysts forecast MTN Nigeria’s share price could climb from N790 to N933.33 on the Nigerian Exchange, with expected dividends of N60.78 per share for the 2026 financial year.

MTN Nigeria’s data business led the expansion in 2025, with average data usage per subscriber up 20% and total data subscribers rising 11.6% to 53.2 million despite higher tariffs.

The growth is supported by increased 4G network coverage, projected to reach 84.6% of the population in 2026, and wider adoption of digital platforms including fintech, e-commerce, and remote-work applications.

Industry forecasts indicate that the mobile internet user base could expand by 32 million by 2030, offering a sustained growth opportunity.

Voice revenue is expected to grow by around 10% to N1.8 trillion in 2026, while strategic acquisitions, such as MTN Group’s $6.2 billion takeover of IHS Towers, may reduce long-term infrastructure costs.

Financial performance has strengthened investor confidence. MTN Nigeria reported a pre-tax profit of N1.7 trillion for 2025, reversing a N550.3 billion loss in 2024.

Service revenue rose 55.1% to N5.17 trillion, with data revenue contributing N2.78 trillion, a 74.5% increase.

Other segments also posted strong gains: voice revenue up 42.1% to N1.85 trillion and fintech revenue up 79.7% to N191.3 billion.

Foreign-exchange gains of N90.3 billion in 2025 improved earnings, compared with a loss of N925.4 billion in 2024.

Following the results, the board proposed a final dividend of N15 per share, bringing the total dividend for 2025 to N20 per share.

MTN Nigeria’s shares surged 155% in 2025 and have risen over 54% so far in 2026. CEO Karl Toriola described 2025 as a turning point, citing improved operational and financial performance.

CardinalStone forecasts earnings per share of N80.84 in 2026, supporting a projected dividend yield of 7.7% at the current market price.

Also read: MTN Nigeria Surges to Top of NGX, Ending BUA Foods’ Six-Month Lead

Analysts say MTN Nigeria remains well positioned to sustain its growth momentum as digital adoption and data consumption continue to accelerate nationwide.