MTN Nigeria, once the jewel in the crown of MTN Group, has reported a staggering ₦400.4 billion loss for the financial year ending December 31, 2024. This marks a significant downturn from the ₦137.02 billion loss recorded in 2023, representing a 198.4% year-on-year increase in losses.
Despite the losses, MTN Nigeria saw a 36% increase in revenue, reaching ₦3.36 trillion compared to ₦2.47 trillion in 2023. This surge was driven by increased data and voice subscriptions. However, the gains were overshadowed by foreign exchange losses, which escalated to ₦925.36 billion from ₦740.43 billion the previous year.
The devaluation of the Nigerian naira played a pivotal role in MTN Nigeria’s financial woes. The weakened currency inflated operational costs, particularly those related to tower leases and other foreign currency obligations.
This financial downturn led to MTN Nigeria losing its position as the top revenue earner within the MTN Group, a spot it had held since 2019. The West and Central Africa (WECA) region and South Africa have now surpassed Nigeria in revenue rankings, signaling a significant shift in the group’s revenue dynamics.
The losses have also impacted MTN Nigeria’s market valuation. The company’s market capitalization dropped by 24.2%, falling from ₦5.54 trillion in 2023 to ₦4.20 trillion by the end of 2024. Similarly, the market price per share declined to ₦200, down from ₦264 per share the previous year.
In response to these challenges, MTN Nigeria is investing heavily in network expansion and digital services, including its MoMo Payment Service Bank and broadband services, to drive future growth. Analysts believe that exchange rate stability and further regulatory interventions will be crucial for MTN Nigeria’s recovery from this financial downturn.
