How the naira’s rebound rewired MTN, Airtel earnings

That is Observe the Cash, our weekly sequence that unpacks the earnings, enterprise, and scaling methods of African fintechs and monetary establishments. A brand new version drops each Monday. 

A 12 months in the past, the depreciating naira almost broke telco giants, MTN Nigeria and Airtel Nigeria, as foreign-exchange losses worn out income development features. At this time, MTN Nigeria has swung from a ₦514.9 billion ($362.16 million) loss to a ₦750.2 billion ($527.67 million) revenue within the 9 months ending September 2025, whereas Airtel booked $90 million in foreign-exchange features to develop earnings to $376 million from $79 million, based on monetary statements. 

On the floor, MTN and Airtel earned ₦5.16 trillion ($3.63 billion) within the first 9 months of 2025 due to a 50% tariff hike and a extra secure macroeconomic surroundings. However, beneath the headline numbers lies a narrative of how a stronger naira reshaped their steadiness sheets, decreased their greenback dangers, and boosted the monetary destiny of Nigeria’s largest telcos.

The starting

In 2023, the Central Financial institution of Nigeria (CBN) unified the nation’s a number of international trade home windows to shut the hole between the official and parallel charges of the naira. This triggered a pointy devaluation from ₦471/$ earlier than the transfer to ₦1,043/$ by December 2023.

The shock rippled throughout each sector, and telecoms bled closely. Regardless of strong income development, MTN reported its first-ever loss after tax, ₦137 billion ($96.36 million), since itemizing on the Nigerian Inventory Change in 2019, after incurring ₦740 billion ($815.8 million at ₦907.1/$) in FX losses.

Airtel Africa additionally reported a $89 million loss for its 12 months ending March 2024, after shedding $1.26 billion to by-product and FX exposures, with $770 million tied to the naira’s crash.

“Each MTN and Airtel have declared vital international trade (FX) losses in Nigeria, and the stress isn’t linked to them alone,” Gbenga Adebayo, chairman of the Affiliation of Licensed Telecom Operators of Nigeria (ALTON), wrote in a 2024 op-ed.

By December 2023, the 2 corporations had no less than $966.6 million in international loans and tower contracts denominated in {dollars}, a burden for operators who earn primarily in naira.

Airtel’s CEO, Sunil Taldar, stated on the time, “We stay dedicated to decreasing international foreign money publicity throughout the Group to restrict the impression of foreign money devaluation on our enterprise.”

Decreasing international exposures

Telecoms rely closely on imported expertise and tools, from community gear to energy techniques. Meaning they want {dollars}. International-denominated loans are sometimes cheaper and simpler to entry, however they expose companies to foreign money swings.

As an illustration, a $100 million mortgage when the naira trades at ₦700/$ equals ₦70 billion. If the naira weakens to ₦1,200/$, that mortgage immediately turns into ₦120 billion, with out curiosity.

This was the truth that crushed telcos in 2023, and each MTN and Airtel spent 2024 localising debt and renegotiating tower contracts.

By March 2025, Airtel Africa had paid down $702 million in foreign-currency debt. “We continued with our debt localisation programme aimed toward decreasing our international foreign money debt publicity with round 95% of our OpCo debt (excl. lease liabilities) now in native foreign money, up from 89% a 12 months in the past,” the corporate stated in its newest monetary statements.

MTN additionally cleared its $400 million letters of credit score. “International foreign money publicity is inside manageable ranges following the settlement of excellent US greenback letters of credit score,” CEO Karl Toriola stated within the firm’s newest monetary statements.

In consequence, MTN’s internet debt dropped from ₦719.5 billion ($506.07 million) in December 2024 to ₦171 billion ($120.28 million) by September 2025, with 70% now naira-denominated.

“The discount in internet foreign exchange losses, down 99.4% year-on-year, was a key contributor (to profitability), due to the comparatively stronger naira through the interval,” Toriola stated on an investor name.

Each corporations additionally renegotiated tower lease contracts with operators like IHS and ATC, decreasing the dollar-linked parts of their bills and boosting power effectivity.

MTN has prolonged its tower grasp lease with IHS till 2032, overlaying 13,500 websites. This was anticipated to save lots of between ₦75 billion ($52.75 million) and ₦85 billion ($59.79 million) in 2024 alone. Annualised financial savings might attain ₦110 billion ($77.37 million).

“On the working bills facet, development was 16.4%, which was under the prevailing inflation price,” stated Modupe Kadri, MTN’s CFO, on the corporate’s investor name on October 31. “This displays the constructive impression of a stronger naira financial savings from a revised tower lease association settlement and continued initiatives to boost underlying expense effectivity.”

Airtel additionally renewed comparable tower offers with ATC and IHS overlaying 8,300 websites throughout Nigeria, Uganda, Kenya, Zambia, and Niger, additional reducing its dollar-linked prices.

Positive factors

The highway forward

Increased tariffs, up roughly 50%, and a extra secure economic system have helped telcos recuperate. Information utilization has surged to document highs regardless of rising prices.

MTN made ₦1.98 trillion ($1.39 billion) from knowledge alone within the first 9 months of 2025, whereas Airtel Africa’s knowledge revenues of ₦1.65 trillion ($1.16 billion) have overtaken voice as its largest earner.

Telcos are actually on observe to earn more money than ever. MTN is about to grow to be a ₦5 trillion ($3.52 billion) income firm by year-end, and Airtel Africa has raised its capex steerage to $900 million from $750 million.

Nonetheless, their fortunes stay tied to the naira. The foreign money has hovered between ₦1,400 and ₦1,500 to the greenback for many of 2025, a spread that has thus far offered stability.

“Our largest publicity is to the Nigerian naira, the place the same 1% USD motion would end in an estimated $13m-$14m impression on international trade (excluding derivatives),” Airtel famous in its newest financials.

MTN’s Kadri added: “The excellent news is that primarily based on the present naira ranges, we now have already recognized our This autumn obligations. So there may be actually no danger when it comes to having a This autumn spike, even when something occurs to the naira.”

Change price used: ₦1,421.73/$