MTN Nigeria has misplaced its place because the MTN Group’s highest-earning subsidiary for the primary time since 2019 after reporting a post-tax lack of ₦400.4 billion ($260.2 million) in 2024. The Nigerian unit fell behind the West and Central Africa (WECA) area and South Africa in income rankings, marking a major shift within the Group’s income dynamics.
The telecom big, which contributed round 40% of the Group’s complete income for 5 years, struggled in 2024 as a weakened naira and rising inflation slashed earnings. MTN Nigeria, which holds 51% of Nigeria’s subscriber base, generated $2.26 billion in 2024—down from $4 billion in 2023.
Regardless of a 36% improve in income to ₦3.36 trillion in 2024 (up from ₦2.47 trillion in 2023), international alternate losses drove MTN Nigeria’s backside line into the pink. In distinction, MTN South Africa earned $2.89 billion, surpassing Nigeria to change into the group’s second-largest subsidiary by income. The WECA area, which incorporates Ghana, Cameroon, Côte d’Ivoire, Benin, Congo Brazzaville, and Liberia, led with $3.1 billion. Ghana was the WECA area’s prime contributor, in keeping with MTN Group CEO Ralph Mupita.
The monetary pressure on MTN Nigeria has broader implications for the Group’s future investments in its largest African market. MTN Group prioritizes capital expenditure for its most worthwhile models, and whereas MTN Nigeria remained a key recipient of funds in 2024—receiving roughly $986.2 million for community growth and 5G rollouts—additional income declines may jeopardize future allocations, probably affecting the corporate’s progress and repair high quality.
Traditionally, South Africa has been the group’s dominant income generator. Nevertheless, Nigeria first surpassed South Africa in 2013 when it generated $2.6 billion in comparison with South Africa’s $2.1 billion. MTN Nigeria maintained the highest place till 2017 when it started repaying a $5.2 billion high-quality imposed by the Nigerian authorities. The corporate regained its main spot in 2019 earlier than slipping once more in 2024.
In response to the 2024 losses, MTN Group suspended Nigeria’s income steering—a projection of future earnings by the corporate. Nevertheless, with the Nigerian Communications Fee (NCC) approving tariff will increase, the corporate has since reinstated its income outlook.
“We noticed inflation ease in direction of the tip of 2024, which supplies us confidence,” stated CEO Ralph Mupita throughout an investor name on Monday. “We now have not but accomplished the implementation of the tariff will increase in Nigeria.”
As of December 31, 2024, MTN Group operates in 16 international locations throughout Africa and the Center East, serving 291 million prospects. The corporate has been streamlining its operations lately, exiting sure markets—corresponding to Afghanistan—to concentrate on its core African enterprise. MTN now organizes its operations into 5 regional clusters: South Africa, Nigeria, South and East Africa (SEA), West and Central Africa (WECA), and the Center East and North Africa (MENA).
MTN Nigeria’s efficiency within the coming years will depend upon a stabilized naira, easing inflation, and a restoration in shopper spending energy.