MTN Nigeria Communications Plc has announced a 22.4% increase in revenue for the full year 2024, reaching ₦2.84 trillion, up from ₦2.32 trillion in 2023. The company’s service revenue also grew by 22.3%, driven by strong performance in data and fintech services, as demand for internet connectivity and mobile financial services continued to rise.
However, profit after tax (PAT) plunged by 64.9% to ₦93.5 billion, down from ₦266.9 billion in 2023. MTN attributed this sharp decline to mounting operational costs, a record ₦740 billion in foreign exchange losses, and higher finance costs as Nigeria’s operating environment became increasingly challenging.
Tariff Hike Poised to Reposition MTN in 2025
A 50% increase in telecom tariffs, recently approved by the Nigerian Communications Commission (NCC), is expected to significantly reshape MTN’s financial trajectory in 2025. This adjustment, the first in over a decade was granted to help operators offset soaring costs related to inflation, energy prices, and network expansion.
MTN Nigeria has already projected that service revenue growth could accelerate to around 45% in 2025, powered by the tariff adjustment. The company’s EBITDA margin is also expected to rebound, rising to the mid-40% range after falling to 39.7% in 2024. The tariff relief will allow MTN to recover some margin pressure caused by currency depreciation and operational cost increases, while also providing fresh capital to invest in network quality improvements.
Data and Fintech Lead Revenue Mix
In 2024, data revenue rose by 33.7%, contributing 44.5% of total service revenue, as internet penetration deepened. MTN’s fintech revenue also expanded by 33.6%, highlighting growing reliance on mobile money services across Nigeria. In contrast, voice revenue recorded slower growth at 6.8%, reflecting the continued shift from traditional voice services to data-powered communications.
Currency Volatility and Cost Pressures
Despite strong topline growth, MTN’s profitability was significantly eroded by Nigeria’s foreign exchange crisis. The naira’s devaluation triggered a ₦740 billion foreign exchange loss in 2024, compared to ₦81 billion in 2023. This wiped out gains from revenue growth, as imported network equipment, loans, and technology services became much more expensive in naira terms.
Subscriber Growth and Network Investment
MTN added 4.2 million new subscribers in 2024, ending the year with 79.7 million mobile users. Active data users also increased by 1.7 million to 44.6 million, driven by continued investment in 4G and 5G rollout. MTN’s 5G network now covers 588 sites across 18 states, and the new tariff regime will support further network expansion in 2025.
Balancing Profitability with Consumer Concerns
While the tariff hike offers much-needed financial relief, it has also triggered a backlash from consumer groups and labour unions. The Nigeria Labour Congress (NLC) has rejected the increase, calling it an unjustified burden on already struggling Nigerians, and has announced plans for nationwide protests. At the same time, the Federal Competition and Consumer Protection Commission (FCCPC) has warned that the tariff increase must lead to tangible improvements in service quality.
Dividends Cut in Response to Profit Decline
Reflecting the challenging 2024 environment, MTN Nigeria’s Board has proposed a final dividend of ₦5.10 per share, bringing the total dividend for 2024 to ₦10.00 per share, down from ₦15.60 per share in 2023.
CEO’s Outlook: Recovery on the Horizon
Commenting on the results, Karl Toriola, CEO of MTN Nigeria, acknowledged that 2024 was marked by “exceptional macroeconomic pressures,” but expressed optimism that the tariff adjustment, ongoing digital innovation, and expanding 5G footprint will enable a strong recovery in 2025.
Analysis: A Turning Point for Nigeria’s Telecom Industry
The combination of a 50% tariff hike and Nigeria’s increasing digital dependence presents a double-edged sword for MTN. On one hand, higher prices could reduce affordability for low-income users, but on the other, the essential nature of telecom services in modern life means demand is unlikely to collapse.
For investors, the key questions will revolve around how efficiently MTN can convert the additional revenue into improved profitability, service quality, and customer retention while navigating regulatory scrutiny and consumer dissatisfaction.
