MTN Group is turning a corner. The company’s Nigerian unit, affected by currency devaluation and economic downturn, is showing signs of recovery.
“That pain which we’ve had for 18 months is abating somewhat … the business is growing very strongly. So I’m actually very bullish and confident that we’ll see strong recovery in Nigeria,” CEO Ralph Mupita told Reuters.
But the damage is still obvious. MTN reported a pre-tax loss of 4.4 billion rand ($243 million) for the year ending December 31, a sharp contrast to its 12.2 billion rand profit in 2023. In Nigeria, the financial blow was worse, with pre-tax losses growing over 200% to 550.3 billion naira ($355.76 million).
The issues? A weakened naira, skyrocketing costs, and an economy choked by inflation and foreign exchange shortages.
MTN is fighting back. The company has renegotiated tower leases, saving 1.2 billion rand. A tariff hike in January is expected to ease some of the financial stress. The company is also betting on mobile money and data services to stabilise revenue. Altogether, cost-saving efforts have shaved off 3.8 billion rand in expenses.
In Sudan, ongoing conflict has affected MTN’s operations, leading to impairments of 11.7 billion rand. Network disruptions in Khartoum and surrounding areas have been severe, though Mupita noted that some sites are gradually coming back online.
Service revenue fell 15% to 177.8 billion rand, but in constant currency terms, it rose 14%. The real shock came in MTN’s headline earnings per share, which plummeted by 69%. Nonetheless, investor trust hasn’t collapsed—by 12:20 GMT, MTN shares were up 2.39%.
Analysts see resilience beneath the issues. “If you look at the underlying performance, which is service revenue at constant currency, it does look strong. Management team is executing well,” said Peter Takaendesa, head of equities at Mergence Investment Managers.
Nigeria’s economic policies under President Bola Tinubu—removal of fuel subsidies, exchange rate reforms—are designed to attract foreign investment. But inflation is still high, and forex volatility isn’t going away overnight.
MTN’s strategy is to push mobile money, expand data services, and keep costs in check. The company has weathered crises before. Whether this recovery holds, however, depends on how well it navigates Nigeria’s economic sector and its own internal restructuring.
