MTN Group has disclosed plans to reduce its equity in MTN Nigeria by up to 11 percent as part of its commitment to expand local participation in the company.
The Group intends to execute the sell-down through a structured public offer once financial conditions in its Nigerian subsidiary improve.
According to MTN Group President and CEO Ralph Mupita, the Group is prepared to cut its stake from 76 percent to 65 percent.
He stated that the initiative is consistent with MTN’s long-term strategy to promote indigenous ownership across its key African markets.
The proposed equity reduction will not take effect until MTN Nigeria reverses its negative equity position and resumes dividend payments.
The company is currently focused on achieving financial recovery before proceeding with any divestment plans.
MTN Nigeria remains a critical part of the Group’s portfolio, contributing substantial revenue despite macroeconomic disruptions.
The Nigerian unit posted N3.36 trillion in revenue in 2024, up from N2.47 trillion in the previous year.
However, the company recorded a loss after tax of N400.44 billion, driven by inflationary pressure and exchange rate volatility.
The depreciation of the naira and increased operational expenses have negatively impacted the subsidiary’s profitability, placing pressure on its balance sheet and delaying shareholder distributions.
MTN Group is projecting a turnaround in 2025, supported by regulatory adjustments and improved market fundamentals.
Mupita said the company anticipates stronger service revenue in the coming year as consumer conditions stabilize and local currency pressures ease.
He explained that the Group remains committed to building sustainable operations in Nigeria and sees greater local equity participation as a priority once profitability returns.
MTN has not disclosed the timeline or pricing of the new offer. The shares are currently trading at N235 on the Nigerian Exchange.
The Group confirmed it will structure the offer to accommodate both institutional and retail investors to ensure broad market inclusion.
As MTN Nigeria prepares for financial recovery, the Group’s localisation strategy remains focused on aligning with Nigeria’s economic development goals and fostering long-term value for domestic investors.
