MTN Nigeria Set to Resume Dividend Payments in 2025 Amidst Strong Financial Recovery

LAGOS — MTN Nigeria is on course to resume dividend payments in 2025, ending a two-year pause that was triggered by a negative equity position. The development marks a significant financial recovery for the telecoms giant and signals renewed investor confidence.

According to a new report from financial advisory firm CardinalStone, MTN Nigeria’s balance sheet has shown strong improvement, and the company is now poised to reclaim its status as one of the top dividend-paying stocks on the Nigerian Exchange (NGX).

From Negative Equity to Recovery

The company’s equity position, which was a deeply negative ?458.01 billion at the end of 2024, has improved dramatically to a negative ?42.51 billion by the first half of 2025. Analysts at CardinalStone project that MTN will cross into positive equity territory by Q3 2025 — a key prerequisite for resuming dividend payments.

This turnaround has been fueled by a combination of strategic decisions and favorable macroeconomic shifts, including:

• A surge in data revenue driven by high demand for mobile internet.
• Successful renegotiation of tower lease agreements.
• A more stable exchange rate regime that has reduced foreign currency obligations.

MTN Nigeria last paid dividends in 2023, and the pause since then had raised concerns among investors. However, with improving financials, the company appears ready to return to its dividend-paying tradition.

Strong Operational Performance

MTN Nigeria’s operational metrics in 2025 underscore its robust recovery. The company recorded a 53.7% EBITDA margin in Q2 2025 — well above its full-year forecast of 44.5%. This was driven by disciplined cost control, including ?113.8 billion in savings from tower lease renegotiations and ?41.9 billion in expense efficiency gains.

“MTN’s ability to adapt to Nigeria’s tough economic landscape while preserving profitability is commendable,” said CardinalStone analysts in their outlook.

Foreign currency pressures have also eased, with obligations dropping to $20.8 million in 2024 from $416.6 million in 2023. Additionally, the Nigerian Communications Commission (NCC) approved a tariff increase of up to 50% earlier this year, further supporting MTN’s revenue base.

Data Boom Driving Growth

A key pillar of MTN Nigeria’s financial resurgence has been the exponential growth in its data services segment. With mobile subscriptions hitting 169 million as of January 2025 — covering roughly 78% of Nigeria’s population — demand for mobile internet is surging.

MTN has responded with aggressive investments in network infrastructure, including the deployment of 700 5G sites across 13 major Nigerian cities such as Lagos and Abuja by mid-2023. This has propelled top-line growth and established data services as the company’s main revenue driver.

Stock Performance and Market Outlook

MTN Nigeria’s stock performance in 2025 reflects the company’s improving fundamentals. After slumping 24% in 2024 to close at ?200 per share, the stock has rebounded strongly — gaining 22.5% in Q1 2025 alone. Positive earnings results in Q2 have further boosted investor sentiment.

CardinalStone has issued a “Hold” recommendation on the stock, with a year-end target price of ?526.94, close to its current reference price of ?480.

What’s Next: Dividend Resumption and Public Offer

Group President Ralph Mupita has hinted that a public offer could follow the resumption of dividends — a move expected to further strengthen shareholder value and attract institutional investors.

A dividend comeback would be particularly welcome in the context of Nigeria’s high inflation and currency volatility, which have diminished returns for many local investors. MTN Nigeria’s return to dividend payments could position it as a top choice for investors seeking stability and value in the Nigerian stock market.

Conclusion

MTN Nigeria’s anticipated dividend resumption marks a pivotal moment in its recovery story. With a nearly restored balance sheet, growing data revenue, and impressive operational efficiency, the telecom leader is well-positioned to reward its shareholders once again.

As Nigeria’s telecom sector continues to expand on the back of rising broadband demand and digital innovation, MTN Nigeria remains a bellwether for both technological advancement and investor value creation.