Nigeria Naira Slump Hits MTN Hard: Company Reports $414.7 Million Loss

MTN Group reported its first loss in eight years, totaling 7.39 billion rand ($414.7 million) for H1 2024, compared to a profit of 4.14 billion rand in 2023. The decline is attributed to the devaluation of the naira, significantly impacting income from Nigeria.

MTN Group has reported a significant financial setback, posting its first loss since 2016. For the first half of 2024, the telecommunications giant experienced a loss of 7.39 billion rand (approximately $414.7 million), a stark reversal from the 4.14 billion rand profit recorded in the same period the previous year. This downturn is largely attributed to the devaluation of the Nigerian naira, a key factor impacting the company’s income from its substantial Nigerian market.

The naira's steep decline has drastically reduced the value of MTN's earnings in its largest and most critical market. The currency’s devaluation has not only diminished revenue but has also escalated operational costs, leading to the company's unprecedented financial loss. MTN’s executives are expected to address these issues in forthcoming financial briefings and strategize on mitigating the impact of currency fluctuations on their business.