MTN Nigeria has reported a post-tax loss of ₦400.4 billion ($260.2 million), losing its status as the top revenue-generating subsidiary of MTN Group for the first time since 2019. South Africa and the WECA region surpassed it in revenue rankings amid challenges from a weakened naira and inflation. MTN Nigeria generated $2.26 billion in 2024, affecting future investment considerations.
MTN Nigeria has lost its title as the MTN Group’s highest-earning subsidiary for the first time since 2019, reporting a post-tax loss of ₦400.4 billion ($260.2 million) for 2024. This loss marks a significant shift in revenue dynamics, as the Nigerian unit now ranks lower than the West and Central Africa (WECA) region and South Africa.
The company, which has historically accounted for about 40% of the Group’s revenue, faced challenges in 2024 due to a weakened naira and rising inflation, leading to a decline in earnings. MTN Nigeria, having the majority of Nigeria’s subscriber base, generated $2.26 billion—down from $4 billion in 2023. Despite an overall revenue increase of 36% to ₦3.36 trillion, foreign exchange losses resulted in negative earnings.
In contrast, MTN South Africa reported $2.89 billion in revenue, becoming the second-largest subsidiary, while the WECA region led with $3.1 billion, with Ghana being the top contributor, according to MTN Group CEO Ralph Mupita. The financial struggles of MTN Nigeria raise concerns regarding the Group’s future investments in Nigeria, its largest African market.
While MTN Nigeria received nearly $986.2 million for network expansion and 5G developments in 2024, continuous revenue drops could threaten future funding and impact growth and service quality. Historically, South Africa dominated group revenue until Nigeria took the lead in 2013, maintaining that position until 2017 when it started repaying a significant fine from the Nigerian government.
Following the 2024 losses, MTN Group has suspended revenue guidance for Nigeria but has reinstated it after the Nigerian Communications Commission (NCC) approved tariff increases. CEO Ralph Mupita expressed confidence, noting an easing of inflation toward the end of 2024, though the full tariff implementation is pending.
As of December 31, 2024, MTN Group serves 291 million customers across 16 countries in Africa and the Middle East, focusing on its core African business while reorganizing into five regional clusters. MTN Nigeria’s future performance hinges on a stabilized naira, reducing inflation, and improving consumer spending.
MTN Nigeria’s loss of its top revenue position reflects significant challenges due to currency fluctuations and inflation. Despite a revenue increase, the adverse effects of foreign exchange losses have resulted in a considerable financial setback. The Group’s future investments in Nigeria may be jeopardized if revenue declines continue, making stabilization of the economic environment essential for recovery and growth.
Original Source: techcabal.com
