MTN Group intends to reduce its stake in Nigerian subsidiary MTN Nigeria from 76% to 65%, which is expected to enhance local investor participation through public offering after the subsidiary becomes profitable.
During a recent editorial meeting, Mupita reiterated his consistent plans, affirming that MTN intends to increase Nigerian ownership of the company. “Our intent has been clear: to lower our ownership over time and enable more Nigerians to access shares. Selling down to 65% is part of that vision,” he explained.
This will be MTN’s second major public offering in Nigeria, following the sale of 575 million shares to local investors in 2021. This offering was oversubscribed, and MTN Group’s stake was reduced from 78.8% to 75.6%. Over 126,000 investors participated, of which pension funds representing 6.5 million contributors also took part.
MTN is currently focused on resolving the negative equity position of its MTN Nigeria subsidiary, alongside reinstating dividends for shareholders, which need to be achieved to enable these additional offerings.
The subsidiary’s revenue for 2024 stood at ₦3.36 trillion, a 36% growth from 2023 revenue. However, the entity faced a severe ₦400.44 billion loss after tax, which stemmed from Nigeria’s rampant inflation rates and steep devaluation of the naira currency. These developments resulted in the shift of primary revenue contributor for MTN South Africa to the group eroded investor value.
Mupita, in his comments, expressed optimism regarding the 2025 recovery, citing tariff increments, operational changes, and the recovering economy as potential boosts. However, Nigeria’s recent measures, like the removal of fuel subsidies, freezing the devaluation of the naira currency, and increased foreign exchange, created a reason for growth positivity. “Stabilizing the naira should boost consumer spending and increase productivity on the operational side of things,” he mentioned in the 2024 financial earnings report for MTN.
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