Joy is coming for MTN shareholders

₦324.6 billion. That is the amount MTN Nigeria, Nigeria’s largest telecom provider, has incurred in negative shareholder equity, stalling expected dividend payments over a two-year period.

The negative equity position, while an improvement from negative ₦458.0 billion at year-end 2024, underscores the severe impact of massive foreign exchange losses incurred over the past two years. The sharp devaluation of the Nigerian Naira significantly inflated the value of MTN Nigeria’s foreign currency-denominated obligations, particularly tower lease costs, leading to substantial net losses that wiped out retained earnings.

The company reported staggering net forex losses of ₦740.4 billion in 2023 and ₦925.4 billion in 2024, resulting in net losses after tax of ₦137.0 billion and ₦400.4 billion, respectively, for those years – its first annual losses since listing in 2019. These losses pushed retained earnings deep into negative territory (negative ₦474.1 billion as of Q1 2025).

However, MTN’s management has promised to rectify this situation and bring joy this year. This is coming on the back of 2025 Q1 profits of ₦133.7 billion, reversing a significant loss of ₦392.7 billion incurred in the same period in 2024, largely due to more stable exchange rates reducing forex losses during the quarter.

“We understand the desire for shareholders to have a dividend. We are all aligned on that. MTN Group, the majority shareholder of MTN Nigeria, also hasn’t received dividends,” said Karl Toriola, MTN Nigeria’s CEO at an annual general meeting (AGM) that held on Wednesday.

× Sponsored

“It is a focus area for the entire organisation to restore shareholder capital so we can return to the declaration of dividends in the shortest time possible.”

MTN shareholders have not gained dividends ever since the payments were halted following significant losses in 2023.  Toriola assured shareholders that a 5-point plan to restore shareholder equity has been executed. The plan includes a reduction of capex, introducing an expense efficiency program that saved ₦40 billion as against the intended ₦17 billion. Renegotiation of tower leases with IHS, reduction of FX obligations on trade lines from $416 million to $21 million, and closure of USSD debt with the banking industry boosted financial performance.

Joy is expected to come very soon. While these are not exact words from Toriola, they are a promise of bounty dividends to come. MTN Nigeria’s past losses impacted the telco’s ability to invest in the business, the CEO stated. With the news of profitability, many network issues, including dropped calls, will be corrected, he assured.