MTN Nigeria Sheds N168bn amidst Offshore Investors Dealings
Telecommunication company MTN Nigeria Plc.’s market value declined by about N168 billion in the equities segment of the Nigerian Exchange (NGX) amidst buckets of buy ratings from equities analysts.
The telecom company’s share price declined by less than 3% to close at N270 on Friday as investors traded 15.872 million units valued at N4.298 billion in the market.
Due to activities of sell-side actors in the local bourse, MTN Nigeria’s share price declined by N8 week on week, having opened at N278 at the beginning of the trading sessions last week.
According to data obtained from the Nigerian Exchange, MTN Nigeria’s 20.995 billion shares outstanding were valued downward by about N168 billion to N5.668 trillion as a result of sell pressures.
Offshore investors actively traded MTN Nigeria stock in the local bourse, AIICO Capital Limited said in its market note, suggesting possible cross trades, which has become prevalent trading culture for bellwether companies to stem price volatility.
A slew of equities analysts have revised their outlook on the telecom company following solid earnings growth, which returned MTN Nigeria to profitability in the first quarter of 2025.
MTN Nigeria continues to grow on the back of customer acquisition, which is expected to drive revenue growth. With the recent regulatory price hike and some internal workout by the company’s management, profit is expected to continue to improve, given that MTN remains the market leader in the telecom industry.
MTN Nigeria maintains its position as the largest mobile network service provider in Nigeria, with an extensive network infrastructure that supports deep market penetration and a strong subscriber base, African-focused ratings agency GCR said in a report.
The Nigerian Telecommunication Commission also said in an industry report that MTN Nigeria reported a significant recovery in active subscribers in March 2025 against the decline reported in 2024 due to the removal of non-verifiable numbers.
Accordingly, its market share increased to 55.0% of active subscribers in Nigeria as of March 2025 from 51.4% in December, maintaining a year-on-year uptrend from 38.8% market control in 2023.
In its latest rating note, GCR dropped a hint that MTN Nigeria’s revenue contribution to the group reduced to 23.1% from 35.0% in 2023. Due to negative shareholders’ funds, some analysts think MTN Nigeria may remain on dividend payment holiday in 2025 as the telecom company continues to improve its balance sheet position.
“Provided the company returns to profitability and attains positive equity in 2025, we expect dividend payments to resume in 2026,” GCR Ratings said in a note. #MTN Nigeria Sheds N168bn amidst Offshore Investors Dealings#
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