MTN NIGERIA SETTLES FX DEBT, PAVES WAY FOR NEW INVESTMENTS
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By: Muftau Fatimo
Nigeria’s largest telecommunications operator, MTN Nigeria, has completed a major balance sheet recovery, clearing its foreign currency debt and positioning the company for a new wave of investments in network expansion and digital infrastructure.
The company’s financial results for the first half of 2026 reflect a strong recovery from a period marked by negative shareholders’ equity, foreign exchange volatility, and suspended dividend payments. Management said the improved financial position signals the beginning of a new growth phase.
MTN Nigeria’s Chief Financial Officer, Modupe Kadri, said the company had fully settled its foreign currency loans, while retained earnings had nearly doubled and shareholders’ equity continued to improve.
“The numbers, impressive as they are, only tell part of the story,” Kadri commented on the result. “What excites me most is what lies beneath them. Our retained earnings have almost doubled. Our shareholders’ equity continues to strengthen. We have completely eliminated our foreign currency loans.”
The removal of foreign currency debt reduces one of the major vulnerabilities that affected Nigerian businesses following sharp currency depreciation and increased foreign exchange pressures.
The operator invested more than N620bn in the first half of 2026 to increase network capacity, improve coverage, and accelerate home broadband expansion.
Chief Executive Officer of MTN Nigeria and Vice President, Francophone Africa, Dr Karl Toriola, said the company’s latest performance reflected more than financial growth, pointing to continued investment in infrastructure supporting Nigeria’s digital economy.
While the numbers reflect a strong first half, they tell a much bigger story, one of sustained investment in the infrastructure powering Nigeria’s digital economy,” Toriola said.
The investment push comes as Nigerians increasingly rely on digital services, with rising demand for data connectivity, enterprise solutions, and digital platforms
MTN Nigeria reported service revenue of N3tn in the first half of 2026, representing a 25.9 per cent increase from the previous year. Earnings before interest, tax, depreciation, and amortisation rose 39.2 per cent to N1.7tn, while profit after tax increased 70.6 per cent to N707.5bn.
The company generated a free cash flow of N712.7bn during the period, strengthening its ability to fund expansion while returning value to shareholders.
Following the improvement in its financial position, the board approved an interim dividend of N26 per share, signalling a return of shareholder rewards after the suspension of dividends during its balance sheet challenges.
The recovery marks a significant turnaround from the financial pressures MTN Nigeria faced in 2024, when foreign exchange volatility eroded its financial performance and weakened its capital position. Since then, the company has focused on enhancing operational efficiency, rebuilding shareholders’ equity, and reducing its financial exposure.
According to Chief Financial Officer Modupe Kadri, the strengthened balance sheet has positioned MTN Nigeria to pursue fresh investments while maintaining its commitment to delivering value to shareholders.
“Our stronger financial position gives us a valuable advantage—the confidence to make bold investments while continuing to deliver returns to shareholders,” Kadri said.
MTN Nigeria said its next growth phase will prioritise investments in digital infrastructure, including fibre network rollout, 5G expansion, home broadband services, and fintech solutions, as it broadens its focus beyond traditional telecommunications.
The company added that its long-term ambition is to evolve from Nigeria’s largest telecommunications operator into Africa’s leading digital solutions provider.
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