Nigeria’s forex crisis adds MTN to growing list of financially distressed companies

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“Most of the naira weakness will affect 2024, more than 2023, and it will take some timefor MTN to recoup cost pressure from the consumer given regulatory restrictions in Nigeria,”Bloomberg quoted Peter Takaendesa, head of equities at Cape Town-based MergenceInvestment Managers, as saying.

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That turned its shareholders’ fund into a negative figure of N40.8 billion, with liabilities totalling N3.230 trillion and assets summing up to N3.188 trillion. The abysmal performance of MTN Nigeria, the local unit of Johannesburg-based Africa’s biggest wireless service provider by revenue, had far-reaching implications for the operations of its parent company MTN Group, whose profit slumped by 90 per cent on account of the development.

MTN Nigeria said its customer base grew 5.3 per cent to 79.7 million during the year, while active data users rose 12.7 per cent to 44.6 million.

 

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