MTN Nigeria Faces N137 Billion Loss Due to Naira Devaluation in 2023
Written by Deborah Oyinloye on March 2, 2024
MTN Nigeria Communications Plc has reported a staggering N137 billion loss in its audited results for the period ending December 31, 2023. This significant loss, compared to the N348.73 billion profit declared in 2022, is primarily attributed to the devaluation of the Nigerian Naira by the Central Bank of Nigeria (CBN).
Despite the challenging operating conditions, MTN Nigeria’s revenue increased by 23 percent to N2.47 trillion in 2023, showcasing the resilience of demand for its services. However, the company recorded a foreign exchange loss of N740.4 billion, contributing to a reported net loss after tax of N137.0 billion.
MTN Nigeria’s CEO, Mr. Karl Toriola, emphasized the adverse impact of rising inflation, currency devaluation, and foreign exchange shortages on the company’s operations. He highlighted challenges such as geopolitical disruptions and cash shortages resulting from the redesign of the naira.
To mitigate these challenges, MTN Nigeria continued to invest in its network infrastructure, focusing on value-based capital allocation and efficiencies. Toriola underscored the company’s commitment to sustaining commercial momentum, improving profitability, and strengthening the balance sheet.
Meanwhile, MTN Group and Huawei have entered into a strategic partnership aimed at accelerating technological innovation. The creation of an Innovation Technology Lab at MTN Group’s headquarters in South Africa will foster collaboration within Africa’s digital ecosystem, focusing on areas such as 5G, Artificial Intelligence, Big Data analytics, and digital financial services.
The partnership seeks to address key challenges faced in Africa, including improving network coverage in rural areas and enhancing energy efficiency. By actively participating in the innovation process, MTN aims to drive meaningful digital transformation and sustainable development across the continent.
Author: Deborah Oyinloye
With an interest in media, Deborah aims to impart the lives of people positively.
