Wisdom Engraced
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MTN Nigeria has reported a loss after tax of N400.44 billion for the year ended December 31, 2024, driven by foreign exchange losses resulting from the devaluation of the naira. The loss disclosed in the company’s audited financial statements represents a 192% increase from the N137.02 billion loss recorded in 2023.
The operator, with over 80 million customers, attributed the significant impact of the naira’s depreciation on its foreign exchange exposure, with forex losses surging to N925 billion from N740 billion in the previous year. The naira depreciated to N1,535/$ by the end of 2024 from N907/$1 as of December 31, 2023.
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Despite the loss, MTN Nigeria’s revenue rose by 36% to N3.36 trillion in 2024, driven by continued demand for data and digital services. However, operating profit marginally increased by 0.46% to N778.2 billion.
In a statement, MTN Nigeria noted, “Forex losses arising from the revaluation of foreign currency-denominated obligations resulted in a loss after tax of N400.4 billion (2023: N137 billion loss), albeit with a positive result in Q4 (PAT of N114.5 billion).” The company also reported negative retained earnings of N607.5 billion.
MTN Nigeria CEO Karl Toriola commented, “We are encouraged by the resilience of our business in FY 2024, which reflects our strong commitment to driving growth and managing costs.
Toriola acknowledged the challenges posed by macroeconomic headwinds, including record-high inflation and currency volatility. “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,” he said.
Toriola expressed gratitude to the authorities for approving tariff adjustments, which he said were essential for the industry’s sustainability and addressing MTN Nigeria’s negative capital position. “We are grateful to the authorities for the recent approval of tariff adjustments, which are essential for our industry’s sustainability and crucial for addressing our negative capital position,” he added.
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