Nigeria's telecom sector has seen significant gains in the first half of 2025, with MTN and Airtel's market capitalization increasing by N2.834 trillion. This represents a 21.22% growth in market value, driven largely by the recent tariff adjustment and improved macroeconomic indicators.
The 50% tariff adjustment approved by the Nigerian Communications Commission (NCC) has been instrumental in reversing years of suppressed pricing and margin pressure. A continuous expansion of digital services like mobile money, fintech, and enterprise connectivity is adding layers of growth resiliance for both companies. MTN .arket capitalization grew by 43% to N7.5 trillion, with shares rising to N357.50 per share from N250.00 at the start of January. Airtel's market capitalization increased by 7.12% to N8.683 trillion, with shares valued at N2,310.50 per share.
The NCC's willingness to approve pricing adjustments reflects regulatory pragmatism, sending strong signal about government support for sector sustainability. Telecom sticks have shown pricing power and demand stability, making them preferred choices for yield-seeking investors in a volatile market. Nigeria's large youthful population and growing data consumption provide long-term tailwinds for the telecom sector.