MTN Nigeria Loses N1.7trn as Investors Exit Positions
MTN Nigeria Plc lost approximately 10%, or N1.7 trillion, in market value on the Nigerian Exchange (NGX) as investors exited positions amid weak sentiment.
Trading data from the stock market showed that the telecom company’s share price climbed to N750 at the close of the trading session on Friday, with 5.544 million units valued at N4.139 billion traded from N720 on Thursday.
The last momentum price recovery aligned with broader market moves, which touched MTN Nigeria, easing the negative impact of initial sell pressure on the telecom stock.
Based on 7 days of trading data, MTN Nigeria’s share price peaked at N830, but lost momentum amidst calls for retaliatory policy against its South African parent company over Xenophobic attacks.
Stockbrokers, however, said Nigerian investors are more accommodating and rely on the government to take necessary action against any South African interests in the economy.
Discussing the outlook for MTN Nigeria, some analysts maintained that anything can happen as events unfold between the Nigerian government and South Africa.
At the close of the trading session on Friday, the market value of MTN Nigeria Plc’s 20.995 billion outstanding shares was N15.746 trillion.
As at 31 December 2025, MTN International (Mauritius) Limited held a substantial 73.39% equity interest in the issued share capital of MTN Nigeria Communications Plc.
This Mauritian entity operates as an investment and holding vehicle and is a direct, wholly owned subsidiary of MTN Group Limited, headquartered in Johannesburg, South Africa.
Through this ownership and administration chain, MTN Nigeria acts as a key operational cluster for the South African parent company. Last year, the MTN Group indicated plans to sell more shares to investors in Nigeria after earnings recovery and dividend payments.
Q1 Earnings and Analysts Expectations
MTN Nigeria reported a strong performance in Q1 2026, with Total Revenue increasing by 41.6% year-on-year to ₦1.5 trillion. The company’s topline growth was largely driven by a significant rise in Data Revenue, along with contributions from Voice, Fintech, and Digital services.
Analysts at CSL Stockbrokers anticipate continued subscriber growth, deeper internet penetration, and ongoing investments in network infrastructure, projecting FY 2026 Total Revenue to reach ₦6.6 trillion, a 27.4% increase from the previous year.
Profitability also saw marked improvement, with EBITDA rising by 68.1% year-on-year to ₦828.3 billion and EBITDA margin expanding to 55.3% from 46.4% in Q1 2025.
Analysts attributed these gains to strong topline growth, reduced direct network costs, and a more stable foreign exchange environment. Notably, the company recognised an FX gain and fully repaid its foreign-currency loans, thereby reducing its exposure to currency volatility.
As a result, pretax profit surged by 169.6% year-on-year to ₦546.42 billion in Q1 2026.
Strategic initiatives such as a proposed fintech restructuring and MTN Group’s acquisition of IHS Towers are expected to enhance long-term operational flexibility and infrastructure capacity, reinforcing the buy recommendation with a target price of ₦1,015.50 per share.
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