MTN Nigeria has lost its status as MTN Group’s top-earning subsidiary for the first time since 2019. The telecom giant posted a post-tax loss of ₦400.4 billion ($260.2 million) in 2024, falling behind the West and Central Africa (WECA) region and South Africa in revenue rankings. This shift marks a significant change in the Group’s financial landscape.
Revenue Growth Overshadowed by Foreign Exchange Losses
Despite a 36% revenue increase to ₦3.36 trillion in 2024, MTN Nigeria struggled due to foreign exchange losses and a weakened naira. The company, which previously contributed around 40% of MTN Group’s total revenue, saw earnings drop from $4 billion in 2023 to $2.26 billion in 2024. Meanwhile, MTN South Africa outperformed with $2.89 billion, while the WECA region led with $3.1 billion, with Ghana emerging as the top contributor.
Financial Challenges and Future Investment Risks
MTN Nigeria’s financial troubles could impact the Group’s future investment in its largest African market. The company remains a key recipient of capital expenditure, securing approximately $986.2 million in 2024 for network expansion and 5G rollout. However, further revenue declines could affect future funding, potentially slowing down growth and service improvements.
Historical Revenue Trends and Market Position
Historically, MTN South Africa led the Group’s revenue charts until Nigeria surpassed it in 2013, generating $2.6 billion against South Africa’s $2.1 billion. MTN Nigeria maintained its lead until 2017 when it started repaying a $5.2 billion fine imposed by the Nigerian government. After reclaiming the top spot in 2019, the company slipped again in 2024.
Tariff Increases and CEO’s Optimism
Following the heavy losses, MTN Group suspended Nigeria’s revenue guidance but later reinstated it after the Nigerian Communications Commission (NCC) approved tariff increases. CEO Ralph Mupita expressed optimism, citing easing inflation towards the end of 2024 and the ongoing implementation of new tariffs.
MTN Group’s Market Presence and Strategic Focus
As of December 31, 2024, MTN Group operates in 16 countries across Africa and the Middle East, serving 291 million customers. The company has focused on streamlining operations, exiting markets like Afghanistan to strengthen its core African business. MTN now organizes its operations into five regional clusters: South Africa, Nigeria, South and East Africa (SEA), West and Central Africa (WECA), and the Middle East and North Africa (MENA).
Path to Recovery for MTN Nigeria
MTN Nigeria’s recovery depends on a stabilized naira, controlled inflation, and improved consumer spending power. With tariff hikes in place and inflation showing signs of slowing, the company hopes to regain financial stability in the coming years.
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