MTN Nigeria, the country’s largest telecom operator, recorded N1.32 trillion ($989.4 million) in expenses in the first half of 2026, as higher employee costs, commissions and other operating expenses accompanied strong revenue growth.

The company’s expenses increased 12.1% from N1.18 trillion a year earlier to N1.32 trillion ($989.4 million), as higher spending accompanied strong revenue growth across its core telecom and digital businesses. The company’s revenue increased 25.9% to N2.99 trillion ($2.24 billion) from N2.38 trillion in H1 2025, while profit after tax climbed 70.6% to N707.5 billion ($519 million).

Employee costs, commissions drive spending

MTN Nigeria’s cost of sales rose 14.1% from N329.61 billion ($247.41 million) to N376.1 billion ($282.31 million), while operating expenses increased 11.3% from N847.54 billion ($635.89 million) to N943.45 billion ($707.84 million) during the period. Employee costs recorded one of the sharpest increases, rising to N135.6 billion ($101.73 million) from N54.7 billion ($41.04 million) a year earlier. Commissions also increased 29.9% to N142.7 billion ($107.01 million), reflecting higher costs associated with the company’s commercial activities.

Other operating expenses rose to N190 billion ($142.57 million) from N128.9 billion ($96.67 million), while spending on advertising, sponsorships and sales promotions increased to N35.1 billion ($26.33 million) from N20.6 billion ($15.45 million).

Some costs, however, declined. Direct networking operating costs fell 8.2% to N629.3 billion ($472.14 million) from N685.3 billion ($514.16 million), while interconnect costs declined to N94 billion ($70.49 million) from N101 billion ($75.73 million).

Despite the increase in expenses, MTN Nigeria’s operating profit climbed 41.9% to N1.27 trillion ($952.28 million), supported by stronger revenue growth and improved operating efficiency.

Data remains MTN Nigeria’s growth engine

MTN Nigeria’s service revenue increased 25.9% to N2.97 trillion ($2.23 million), with data continuing to provide the strongest contribution to growth.

Data revenue surged 38.4% to N1.7 trillion ($1.28 billion) as active data subscribers rose 9.3% to 55.7 million. Average data usage per subscriber increased 15.2% to 14.8GB, while network data traffic grew 25.8%.

Voice revenue also remained resilient, rising 12% to N993.5 billion ($745.5 million), while digital revenue increased 20.9% to N58.5 billion. Fintech revenue, however, declined 7.2% to N77.2 billion, despite MoMo wallets increasing 88.8% to 5 million.

MTN Nigeria invests ₦795.6 billion in network

Beyond its operating expenses, MTN Nigeria invested N795.6 billion ($596.95 million) in capital expenditure during the six months, down 19.3% from N986.1 billion ($739.77 million) a year earlier.

Free cash flow nevertheless increased 73.9% to N712.7 billion ($534.82 million), underscoring the company’s stronger cash-generation capacity.

The higher spending and capital investment came as MTN continued expanding network capacity and developing its fibre-to-the-home and 5G fixed wireless access businesses.

Overall, MTN Nigeria’s first-half results show that while expenses rose by N142.4 billion ($106.85 million) year-on-year, revenue growth significantly outpaced the increase in costs, helping lift profit after tax to N707.5 billion ($519 million).