16 April 2025
MTN Group has announced its intention to sell an additional 11% stake in its Nigerian subsidiary, MTN Nigeria, aiming to reduce its ownership from 76% to 65%.
This strategic move is part of a broader effort by the telecom giant to enhance local investment in its subsidiaries, particularly in Nigeria, Uganda, and Ghana. The process will begin with a public offering, although a specific timeline for the launch has yet to be disclosed.
This initiative follows MTN's previous divestment in 2021 when it sold 575 million shares in MTN Nigeria, resulting in a reduction of its stake from 78% to the current 76%. Group Chairman Ralph Mupita indicated that the upcoming public offering will occur after MTN Nigeria's financial position stabilizes amid a challenging macroeconomic landscape.
MTN Nigeria has been grappling with significant economic headwinds. The average inflation rate surged to 33.1% in the fiscal year 2024, compared to 24.5% in 2023, impacting the overall business environment. Additionally, the Nigerian naira has seen a dramatic depreciation, trading at an average of 1,508 naira per US dollar in 2024, up from 598 naira per dollar the previous year.
Despite these challenges, MTN Nigeria reported revenues of N3.36 trillion in 2024, reflecting a robust growth of 36.1% compared to 2023. However, the company faced a net loss of N400.43 billion, which marks a 192.25% decline from the N137 billion net loss reported in the previous year. As a result, the MTN Nigeria Board of Directors did not recommend dividend payments to shareholders for 2024.
MTN Nigeria's management acknowledged the ongoing operational challenges in its annual report, which include high inflation and unpredictable foreign exchange conditions. The company remains committed to enhancing sustainable growth and operational resilience while navigating the volatile macroeconomic environment.
MTN Group emphasized its intention to closely monitor developments in the economy, particularly concerning foreign exchange rates and potential pricing adjustments related to new tariffs, ensuring stakeholders are informed as the company pursues its growth ambitions.
