MTN Nigeria loses top earner spot after ₦400.4bn loss
MTN Nigeria has ceded its status as the highest-performing subsidiary within the MTN Group, experiencing a post-tax loss of ₦400.4 billion ($260.2 million) in 2024, marking the first time it has done so since 2019.
The Nigerian division has fallen behind the West and Central Africa region and South Africa in terms of revenue rankings, indicating a notable change in the financial landscape of the telecom giant.
MTN Nigeria, which had contributed nearly 40% to the Group’s total revenue for the past five years, faced significant challenges in 2024 due to a weakened naira and rising inflation that greatly affected earnings. The subsidiary recorded $2.26 billion in revenue for the year—almost half of the $4 billion it generated in 2023.
Despite experiencing a 36% increase in revenue year-on-year, amounting to ₦3.36 trillion ($2.26 billion) in 2024, foreign exchange losses pushed the company into a negative financial position. By contrast, MTN South Africa achieved revenue of $2.89 billion, surpassing Nigeria and becoming the Group’s second-largest revenue contributor.
The WECA region, which encompasses Ghana, Cameroon, Côte d’Ivoire, Benin, Congo Brazzaville, and Liberia, topped the revenue charts with total earnings of $3.1 billion. Ghana was highlighted as the leading contributor within that region, as reported by MTN Group CEO Ralph Mupita.
The financial difficulties faced by MTN Nigeria have sparked concerns regarding the Group’s future investments in its largest African market. MTN tends to direct its capital expenditure towards its most lucrative divisions, and while Nigeria continued to be a priority in 2024—receiving around $986.2 million for network enhancements and 5G deployments—ongoing revenue declines may jeopardize future investment decisions. A decrease in investment could have a detrimental effect on service quality and slow down MTN’s expansion strategies within the country.
Historically, South Africa had been the largest revenue source for MTN Group. Nevertheless, Nigeria surpassed it in 2013, earning $2.6 billion compared to South Africa's $2.1 billion.
MTN Nigeria maintained the leading position until 2017 when it started repaying a fine of $5.2 billion imposed by the Nigerian government. The company reclaimed its top status in 2019 but has now fallen behind once more.
In response to MTN Nigeria’s financial difficulties, the Group initially stalled its revenue forecast for the subsidiary, putting earnings projections on hold. However, after the Nigerian Communications Commission approved increases in tariffs, the company reinstated its revenue outlook, citing signs of economic recovery.
“We observed a decrease in inflation towards the end of 2024, which instills confidence in us,” said CEO Ralph Mupita during a recent investor call. “We have yet to fully implement the tariff hikes in Nigeria.”
As of December 31, 2024, MTN Group operates in 16 countries across Africa and the Middle East, serving 291 million customers. In recent years, the company has optimized its operations by exiting non-core markets, such as Afghanistan, to focus on its African endeavors.
The Group has since organized its operations into five regional segments: South Africa, Nigeria, South and East Africa, West and Central Africa, and the Middle East and North Africa.
The financial recovery of MTN Nigeria in the upcoming years will hinge on the stability of the exchange rate, efforts to control inflation, and a resurgence in consumer spending. The company remains a major player in Nigeria’s telecom sector, commanding 51% of the country’s subscriber market, but it must contend with increasing challenges in sustaining profitability amid economic pressures.
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