MTN Group has announced plans to reduce its shareholding in MTN Nigeria from 76% to 65%, aligning with its long-term strategy to increase local ownership. The move, which will be executed through a public offer, is contingent on MTN Nigeria returning to profitability.
Ralph Mupita, President of MTN Group, confirmed the decision during an editors’ roundtable this week. He emphasized that MTN has long intended to sell down its stake in Nigeria, as part of a commitment to deepen local ownership. “We want more Nigerians owning the company,” Mupita said, further explaining the Group’s intention to decrease its ownership to 65% over time.
This anticipated offer will be MTN’s second significant retail public offering in Nigeria, following its 2021 sale of 575 million shares to local investors. That previous offering, which was oversubscribed, reduced MTN’s stake from 78.8% to 75.6%. More than 126,000 investors, including retail and institutional investors, participated in that round.
However, Mupita stated that MTN would only proceed with the new offer once MTN Nigeria resolves its negative equity position and resumes dividend payments. At present, MTN Nigeria’s shares are priced at N235 per share.
Despite a revenue increase to N3.36 trillion in 2024, MTN Nigeria reported a loss after tax of N400.44 billion, attributed to macroeconomic challenges such as high inflation and the devaluation of the naira. The company’s performance lagged behind MTN South Africa, which has traditionally been the group’s top revenue contributor.
Looking ahead, MTN Group anticipates a strong recovery in Nigeria in 2025, citing factors such as recent tariff adjustments, structural reforms, and an improving macroeconomic environment, including naira stabilization and better dollar availability.
“We are expecting a V-shaped recovery in Nigeria’s service revenue,” Mupita said, noting that the continued normalization of economic factors will have positive impacts on both consumer spending and MTN Nigeria’s business operations.
