MTN Nigeria has experienced a significant shift in its financial standing, losing its title as the highest-earning subsidiary within the MTN Group for the first time since 2019. In 2024, the Nigerian unit reported a post-tax loss of ₦400.4 billion (approximately $260.2 million), which has resulted in a notable decline in its revenue rankings, falling behind both the West and Central Africa (WECA) region and South Africa.
For five consecutive years, MTN Nigeria contributed around 40% of the Group’s total revenue. However, in 2024, the company faced considerable challenges due to a weakened naira and rising inflation, which severely impacted its earnings. Despite holding 51% of Nigeria’s subscriber base, MTN Nigeria generated $2.26 billion in revenue for the year, a significant drop from $4 billion in 2023.
Interestingly, while MTN Nigeria saw a 36% increase in revenue to ₦3.36 trillion in 2024 (up from ₦2.47 trillion in 2023), foreign exchange losses ultimately drove the company’s bottom line into negative territory. In contrast, MTN South Africa reported earnings of $2.89 billion, surpassing Nigeria to become the Group’s second-largest subsidiary by revenue. The WECA region led the Group with revenues of $3.1 billion, with Ghana emerging as the top contributor within that region, as noted by MTN Group CEO Ralph Mupita.
The financial difficulties faced by MTN Nigeria have broader implications for the Group’s future investments in its largest African market. MTN Group typically prioritizes capital expenditure for its most profitable units. Although MTN Nigeria remained a key recipient of funds in 2024—receiving approximately $986.2 million for network expansion and 5G rollouts—continued revenue declines could jeopardize future funding allocations, potentially impacting the company’s growth trajectory and service quality.
Historically, South Africa has been the dominant revenue generator for the MTN Group. However, Nigeria first surpassed South Africa in 2013, generating $2.6 billion compared to South Africa’s $2.1 billion. MTN Nigeria maintained its leading position until 2017, when it began repaying a $5.2 billion fine imposed by the Nigerian government. The company regained its top spot in 2019 but has now slipped back in 2024.
In light of the losses reported in 2024, MTN Group has suspended its revenue guidance for Nigeria, which is a projection of future earnings. However, following the approval of tariff increases by the Nigerian Communications Commission (NCC), the company has reinstated its revenue outlook. “We saw inflation ease towards the end of 2024, which gives us confidence,” stated CEO Ralph Mupita during an investor call on Monday. “We have not yet completed the implementation of the tariff increases in Nigeria.”
As of December 31, 2024, MTN Group operates in 16 countries across Africa and the Middle East, serving a total of 291 million customers. In recent years, the company has been streamlining its operations, exiting certain markets—such as Afghanistan—to concentrate on its core African business. MTN now organizes its operations 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). The future performance of MTN Nigeria will hinge on several factors, including the stabilization of the naira, a reduction in inflation, and a recovery in consumer spending power.
