MTN Nigeria has reported a post-tax loss of ₦400.4 billion in 2024, losing its status as the group’s highest revenue earner for the first time in years. The effects of inflation and currency devaluation have significantly impacted revenue, leading to broader implications for future investments. South Africa and the WECA region have surpassed Nigeria in revenue, indicating a shift in dynamics within the MTN Group.
As of 2024, MTN Nigeria has lost its position as the leading revenue-generating subsidiary within the MTN Group for the first time since 2019. The Nigerian unit reported a substantial post-tax loss of ₦400.4 billion ($260.2 million), falling behind both the West and Central Africa (WECA) region and South Africa in revenue rankings.
Once a cornerstone of the Group, contributing approximately 40% of its total revenue, MTN Nigeria has faced significant challenges in 2024 due to a weakened naira and rising inflation that severely impacted its earnings. The subsidiary, which commands 51% of Nigeria’s mobile subscriber market, generated $2.26 billion in revenue, a notable decline from $4 billion in 2023.
The company did report a 36% revenue increase, totaling ₦3.36 trillion in 2024, up from ₦2.47 trillion in 2023. However, substantial foreign exchange losses overshadowed these gains, resulting in a negative bottom line. In contrast, MTN South Africa achieved $2.89 billion in revenue, making it the group’s second-largest subsidiary, while the WECA region led with $3.1 billion, with Ghana as its primary contributor, according to MTN Group CEO Ralph Mupita.
The financial predicament of MTN Nigeria presents wider implications for the MTN Group’s investment strategies in Nigeria, its largest market. While MTN Nigeria is a significant recipient of investment—approximately $986.2 million allocated in 2024 for network and 5G expansions—continued revenue decreases may threaten future funding, thereby impacting growth and the quality of services.
Historically, South Africa has been the traditional driver of revenue for the group. In 2013, Nigeria surpassed South Africa for the first time, generating $2.6 billion compared to South Africa’s $2.1 billion, and despite facing setbacks, Nigeria regained its leading position in 2019 until slipping again in 2024.
In light of these financial losses, MTN Group has suspended Nigeria’s revenue guidance but has reinstated its earnings outlook following the approval of tariff increases by the Nigerian Communications Commission (NCC). “We saw inflation ease towards the end of 2024, which gives us confidence,” remarked CEO Ralph Mupita during an investor call.
As of the end of December 2024, MTN Group operates in 16 countries across Africa and the Middle East, serving 291 million customers. The firm has refined its operational reach by exiting markets such as Afghanistan, now focusing on a core African business organized 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).
Looking ahead, MTN Nigeria’s future performance will hinge on a stabilized naira, reduced inflation rates, and a revival in consumer spending capacity.
MTN Nigeria’s significant post-tax loss in 2024 has led to its first loss of the top revenue spot since 2019, with competition from the WECA region and South Africa. Although revenue figures increased, foreign exchange losses prompted alarming financial outcomes. The company’s reliance on Nigerian markets for future investments remains critical, and stabilizing economic conditions will be essential for its recovery and operational success.
Original Source: techcabal.com
