MTN Nigeria reported a profit after tax of N355.5bn in the first quarter of 2026, up 165.9 per cent year-on-year. In its unaudited results released on Wednesday, the telecom operator, however, noted that it expects a 1.8 to 2.0 percentage point decline in full-year Earnings Before Interest, Taxes, Depreciation and Amortisation margins if diesel prices average N2,000 per litre in the second half of the year.
“We continue to monitor developments in the operating environment, including energy price volatility and regulatory dynamics,” Chief Executive Officer Karl Toriola said in the Q1 report. The development comes as Dangote Refinery on Thursday hiked diesel price to ₦1,800 per litre, up from ₦1,750 on rising tensions in the Middle East, as the Refinery has halted loading at the facility.
Brent crude was trading at $124.9 per barrel (+5.82%) on Thursday, while West Texas Intermediate (WTI) stood at $109.2 per barrel (+2.18%). Market checks show major depots across the nation sold at higher prices during closing hours on Wednesday. Fuel prices at independent stations reportedly climbed to about N1,250 per litre in some states.
In Lagos, Swift and Duport sold diesel at ₦1,980 per litre, while TMDK sold at ₦1,950 per litre. Depot data for Calabar shows Northwest depot sold at ₦1,985, while at Warri First Fortune dispensed at ₦1,950 per litre, and at Port Harcourt Matrix depot dispensed at ₦2,050 per litre.
In March, tensions involving the United States, Israel, and Iran disrupted activities around the Strait of Hormuz, pushing crude prices above $100 per barrel and raising fuel import costs globally. “Based on an assumed average Lagos ex-depot diesel price of N2,000 in H2, we estimate a 1.8–2.0 percentage point impact on full-year EBITDA margin,” the MTN executive added.
Nigerian telecom operators consume over 40 million litres of diesel every month to power base stations nationwide. This reliance is driven by persistent grid instability, which has made self-generation the default energy source for network operations, according to the State of Africa’s Infrastructure Report 2025 by the Africa Finance Corporation.
This translates to more than 480 million litres of diesel consumed by the sector on an annual basis, with industry estimates suggesting annual spending exceeding $350m. READ ALSO: Dangote Cement’s Q1 Profit Hits N421.1bn