Despite the substantial loss of $312.4 million in the first half of 2024 (H1 2024), MTN Nigeria has shown resilience, marking a significant increase from the $51.1 million loss reported in the same period last year.
The telecom giant attributed its financial downturn to Nigeria’s volatile currency, escalating operating expenses. MTN Nigeria faces substantial dollar-denominated costs, including expenses related to its tower contract with IHS Towers.
Despite a revenue increase of $921 million, the company needed help with rising costs. Cost of sales surged by 33% to $151.7 million, while operating expenses reached $444.3 million.
MTN is proactively taking steps to mitigate losses by reducing dollar-based expenditures. It has partnered with ATC Nigeria to supply 2,500 towers in 2025, a move that is expected to lower operational costs.
This new arrangement is expected to be denominated in naira, potentially lowering operational costs.
Furthermore, MTN is seeking regulatory approval for tariff increases alongside other telecommunications firms.
These increases are necessary to offset rising costs and maintain the company’s competitiveness in the market.
The company is committed to ensuring that any changes in tariffs are communicated transparently to its customers.
Despite financial challenges, MTN Nigeria is maintaining its focus on expanding its customer base. It now serves 79.4 million mobile subscribers and 5.5 million mobile money users, a testament to its continued growth.
The shift in consumer behaviour towards data services has been notable, with data revenue surpassing voice revenue.
Customers increasingly favour cheaper internet-based calls over traditional voice plans, driven by cost savings, particularly in international communications where data rates prove more economical.
