MTN Considers Second Public Offer In Nigeria

MTN Group has revealed plans to further reduce its stake in MTN Nigeria through a second public share offer, aiming to cut its current 76 percent holding to 65 percent, once the unit returns to profitability. The initiative highlights the telecom giant’s commitment to expanding Nigerian ownership and enhancing retail investor participation in one of its largest markets.

Mr. Ralph Mupita, President and Chief Executive Officer (CEO) of MTN Group, made the disclosure during an editors’ roundtable recently, stating that the potential 11 percent equity divestment is aligned with the group’s long-standing localisation strategy.

“We have always said that over time, we want more Nigerians owning the company,” he said.

The move comes on the heels of MTN Nigeria’s previous public offer in 2021, when the company sold 575 million shares to local investors—an offer that was oversubscribed, ultimately leading to the allocation of over 661 million shares. That sale reduced MTN Group’s ownership from 78.8 percent to 75.6 percent.  According to company filings, more than 126,000 retail and institutional investors participated, including pension funds representing over 6.5 million Nigerians.

MTN Nigeria’s current share price is N235. However, the company has faced significant headwinds in the past year. Despite posting revenue of N3.36 trillion in 2024—up 36 percent from N2.47 trillion in 2023—it recorded a post-tax loss of N400.44 billion, driven largely by foreign exchange losses and operating cost inflation. This marked a sharp downturn from the N137.02 billion loss reported in the previous year.

The telco attributed its losses to Nigeria’s economic challenges, including a record naira devaluation, inflationary pressure, and high energy costs. These factors have eroded margins and pushed MTN Nigeria into a negative equity position, effectively halting dividend payouts and investor returns. As a result, MTN South Africa reclaimed its position as the group’s largest revenue contributor.

Despite these setbacks, MTN Group remains optimistic about its Nigerian subsidiary’s outlook. The company is forecasting a “V-shaped” recovery in 2025, banking on recent structural reforms such as the removal of fuel subsidies, stabilisation of the naira, and improved access to foreign exchange. These, according to Mr. Mupita, are expected to strengthen consumer spending and boost operating efficiency.

“The continued normalisation of these factors, particularly naira stability, should have positive impacts on consumer spending power and our business operations,” he stated in the latest group’s 2024 financial statement.

The group emphasised that the next public offer will only be launched after MTN Nigeria restores profitability and resumes dividend payments, key indicators of financial health that investors closely monitor.

For investors, the proposed sell-down could present another opportunity to own a stake in one of Nigeria’s leading telecom companies, particularly as the sector stabilises and digital adoption deepens. Market analysts say the offer could also improve MTN Nigeria’s capital structure and enhance liquidity on the Nigerian Exchange.