MTN Nigeria has recorded its first loss in three years for the full year 2023, attributing the downturn to factors such as Naira devaluation and escalating operational costs.
The telecommunications giant reported a loss after tax of ₦137.0 billion compared to profits of ₦348.7 billion in the preceding year. Tower lease expenses, which are indexed to the US dollar but paid in Naira, constituted a significant portion of its foreign currency exposure in operating costs.
CEO Karl Toriola cited the Central Bank of Nigeria’s adoption of a more liberal foreign exchange management system in June 2023 as a key contributor to increased operational costs, particularly concerning tower leases.
The challenging economic environment characterized by high inflation rates, currency instability, and surging energy costs further exacerbated the situation for MTN Nigeria.
Despite the financial setback, MTN Nigeria remains focused on expanding its non-core services such as Cloud, Unified Communications, and IoT applications to capitalize on future growth opportunities alongside its expanding 4G and 5G businesses.
Additionally, efforts are underway to address regulatory disputes, including ongoing negotiations to resolve the USSD dispute with banks, as highlighted in the telco’s financial statement.