MTN Nigeria Retreats amidst Tariff Hike Euphoria, Licence Renewal
MTN Nigeria Plc market value bumped over sell pressures in the equities market, reversing its top maximum allowable gain in the previous day. Investors took profit selling part of their interest in MTN Nigeria Plc shares after a strong gain posted following a 50% tariff hike secured from the telecom regulator.
On Wednesday, the telecom stock fell to N247 per share, losing N9.30 on the day as more than 2 million shares were transacted in the market. According to trading details, the share price had increased by 10% Tuesday as some investors made early entries in anticipation that the increased tariff would boost group earnings in 2025.
MTN Nigeria PLC has lost a sizeable amount of its market valuation because of weak earnings performance in the past three quarters. The company’s shareholders fund turned hot red after three quarterly losses spurred by its FX liabilities exposure.
Nigeria’s FX reform totally damaged the company shareholders’ funds, and it had been a tug of war requesting a tariff hike to boost earnings; raise infrastructure spending, and boost shareholders wealth.
MTN Nigeria’s market value declined to N5.185 trillion midweek ahead of earnings release in the coming days. In a notice, the telecom giant said it has obtained regulatory approval for the renewal and harmonisation of its spectrum licence in the 800 MHz band.
Management said the Nigerian Communications Commission (NCC) has approved the renewal of its first 800MHz spectrum band licence (Channel 1) for an additional ten years, effective from 1 January 2025 to 31 December 2034.
The NCC has also approved the extension of the second 800MHz spectrum band licence (Channel 2), which expires on 31 December 2030, for an additional four years, with a new end date of 31 December 2034.
The company said the extension aims to harmonise the tenure of the company’s 800MHz spectrum licences so that they jointly expire on 31 December 2034 for ease of subsequent renewals.
Commenting on the transactions, MTN Nigeria CEO Karl Toriola said: “We are pleased with the successful renewal and harmonisation of our 800MHz spectrum licences, which lay a solid foundation for the ongoing delivery of 4G services to our customers. This enables us to continue to meet the demand for data and is integral to our broader strategy for enhancing connectivity.” ECOWAS Issues Deadline to Bukina Faso, Mali, Niger
