MTN Group is gearing up for its second public retail offering in Nigeria as part of its drive to deepen local ownership and rebound from recent macroeconomic headwinds. The telecom giant plans to reduce its stake in MTN Nigeria from about 76% down to 65% through a public offer—a move that aligns with its longstanding commitment to localize ownership and boost investor participation.
Key Points:
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Strategic Sell-Down:
Ralph Mupita, President of MTN Group, revealed at an editors’ roundtable (as reported by ITWeb) that MTN has long stated the need for increased local ownership. The Group now intends to sell down approximately 11% of its interest in Nigeria to achieve a target stake of 65%. -
Previous Success in Localizing Ownership:
This upcoming offer follows a successful retail public offering in 2021, where MTN Nigeria issued 575 million shares—oversubscribed to 661.25 million shares—bringing its stake down from 78.8% to 75.6%. More than 126,000 investors, including major institutional participants such as Nigerian pension funds, were involved in that round. -
Conditions for the New Offer:
Mupita confirmed that the second retail offer will only proceed after MTN Nigeria addresses its negative equity position and resumes dividend payments. At present, shares are trading at about N235 per share. -
Financial Context:
In 2024, MTN Nigeria recorded revenue of N3.36 trillion—a 36% increase from the previous year—but also posted a loss after tax of N400.44 billion, a sharp rise from N137.02 billion in 2023. These financial challenges were largely attributed to macroeconomic pressures, including record inflation and a steep devaluation of the naira, which increased operating costs and eroded investor value. As a result, MTN Nigeria has trailed behind MTN South Africa in contributing to the Group’s overall revenue. -
Optimistic Outlook for 2025:
Despite recent setbacks, MTN Group is optimistic about a V-shaped recovery in Nigeria. Structural reforms such as the removal of fuel subsidies, stabilization of the naira, and improved dollar availability are expected to boost consumer spending and stabilize business operations. Mupita highlighted these positive trends as key drivers behind the anticipated rebound in service revenue and overall economic improvement in Nigeria.
Conclusion:
MTN Group’s strategic initiative to further localize its shareholding in Nigeria reflects both a commitment to fostering indigenous investment and a confidence in Nigeria’s economic recovery. With targeted improvements in macroeconomic conditions already underway, this second public offering could mark a significant turning point for MTN Nigeria, helping to restore investor confidence and underpin future growth in one of Africa’s most dynamic telecom markets.
