MTN Nigeria recorded a loss of N400.44 billion after tax for the year ending December 31, 2024. The sharp depreciation of the naira significantly affected the company’s financial performance, leading to higher foreign exchange losses.
The audited financial report, released on Thursday, shows that the company’s loss increased by 192% compared to the N137.02 billion loss reported in 2023. MTN Nigeria, which serves over 80 million customers, noted that forex losses rose to N925 billion in 2024 from N740 billion in the previous year.
The naira weakened significantly against the US dollar, falling from N907/$1 at the end of 2023 to N1,535/$1 by December 2024. This currency decline greatly affected MTN’s foreign exchange obligations, contributing to the company’s negative financial results.
Despite the significant loss, the company’s revenue grew by 36%, reaching N3.36 trillion in 2024, up from N2.47 trillion in 2023. This growth was driven by increased demand for data and digital services. However, the gains in revenue were overshadowed by mounting forex losses.
A section of the report noted, “Forex losses arising from the revaluation of foreign currency-denominated obligations resulted in a loss after tax of N400.4bn (2023: N137 billion loss), albeit with a positive result in Q4 (PAT of N114.5bn).”
The report further stated that retained earnings were negative at N607.5 billion by the end of 2024, though this was an improvement from the negative N727.2 billion recorded in June 2024.
MTN’s operating profit, which reflects earnings from its core business operations, stood at N778.2 billion, a slight increase of 0.46% from the previous year’s N774.6 billion. However, this improvement was not enough to offset the foreign exchange losses.
Speaking on the company’s performance, MTN Nigeria CEO Karl Toriola said, “We are encouraged by the resilience of our business in FY 2024, which reflects our strong commitment to driving growth and managing costs.
Despite facing significant macroeconomic headwinds, including record-high inflation, as well as ongoing currency and energy price volatility, we remained focused on executing our strategy and creating long-term value for our stakeholders.”
Toriola also acknowledged the recent approval of tariff adjustments by authorities, noting that they are necessary for the sustainability of the telecom sector and for addressing MTN Nigeria’s negative capital position.
MTN Nigeria Communications Plc was established on November 8, 2000, as a private limited liability company. The company received a license from the Nigerian Communications Commission on February 9, 2001, to operate GSM network services across Nigeria. It began operations on August 8, 2001, and has since grown to become one of the country’s largest telecom providers.
