Nigerian telecommunications investors saw substantial profits in the first half of 2025. Shares for MTN Plc and Airtel Plc significantly rose, driven by recent tariff adjustments, positive macroeconomic signs, and strong investor confidence. Data from the Nigerian Exchange Limited (NGX) showed these two companies together recorded a capital gain of ₦2.834 trillion by June 30, 2025, marking a 21.22% increase in their total market value. These impressive gains were largely due to a re-pricing of telecom stocks following regulatory changes and the sector's resilience amidst a volatile economic environment.
MTN emerged as the top performer, concluding the first half of the year with its share price at ₦357.50 and a market capitalization of ₦7.5 trillion. This represented a remarkable ₦2.257 trillion, or 43%, increase in its market value from January. Airtel Africa also experienced consistent growth, with its share price climbing to ₦2,310.50 and its market capitalization reaching ₦8.683 trillion. This was an increase of ₦577 billion, or 7.12%, compared to its position at the beginning of January.
Industry experts largely attribute this strong positive momentum in the telecom segment to the tariff hike approved by the Nigerian Communications Commission (NCC) earlier in 2025. This crucial regulatory decision allowed telecom operators to increase charges for data, voice, and SMS services by up to 50%, marking the first major tariff adjustment in over a decade. According to Nnamdi Chidi, a telecom analyst, this tariff increase was vital in reversing years of suppressed pricing and margin pressures, allowing companies like MTN and Airtel to implement more realistic pricing strategies.
Chidi further explained that the new pricing regime helped telecom companies offset the rising operational costs caused by energy price shocks, foreign exchange volatility, and regulatory levies. He highlighted that MTN's revenue alone jumped over 40% year-on-year in Q1 2025 as a direct consequence of these changes. Investors quickly factored in the prospect of stronger cash flow and improved earnings, which directly contributed to the significant market capitalization gains. Additionally, Chidi noted that the continued expansion of digital services, including mobile money, fintech, and enterprise connectivity, provides further layers of growth resilience for both major telecom players.
Equity Strategist Temitope Balogun added that regulatory clarity and a more stable macroeconomic environment were key to the telcos’ market surge. She stated that the NCC's willingness to approve these long-overdue pricing adjustments signaled strong government support for the sector's sustainability. Balogun also emphasized that Nigeria's large, youthful population and increasing data consumption offer long-term tailwinds for the telecom industry, leading institutional investors to view telco equities as "defensive plays" in an inflationary period. David Adonri of Hicap Securities Limited echoed these sentiments, noting that telecom stocks' pricing power and demand stability make them preferred choices for investors seeking returns, even amidst political uncertainties and monetary tightening.