MTN Nigeria earns more but keeps less cash
MTN Nigeria’s profit after tax rose 55.3% to ₦1.17 trillion in the first nine months of 2026, but its cash reserves fell nearly 40% as dividends, network investments and debt repayments absorbed cash. The results highlight the growing tension between rewarding shareholders, funding expansion and preserving liquidity amid rising operating costs and economic uncertainty.
MTN Nigeria reported stronger financial performance in the nine months ending September 30, 2026, with profit after tax up 55.3% to ₦1.17 trillion ($869.9 million) and service revenue increasing 23.7% to ₦4.59 trillion ($3.41 billion). However, the company's cash reserves dwindled by nearly 40%, from ₦632.5 billion ($470.3 million) to ₦381.0 billion ($283.3 million), despite net operating cash flow rising 48.2% to ₦2.31 trillion ($1.72 billion).
This decline in cash is attributed to growing capital allocation as the company focuses on network investments, debt repayments, and dividend payouts, while also maintaining sufficient liquidity to handle unexpected costs and economic shocks. The company's data revenue grew by 35.8% to ₦2.68 trillion ($1.99 billion), fueled by a 12% rise in active data users to 57.2 million.
Despite this strong growth, MTN Nigeria's shrinking cash reserves may limit its flexibility to respond to rising operating costs, regulatory pressures, or economic shocks.
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