In a move to address its negative net asset position and mitigate the effects of challenging operating conditions, MTN Nigeria has announced plans to increase call tariffs. The decision was made during the company’s extraordinary general meeting held on Friday.
According to a statement released by the telecommunications giant, the tariff hike is part of a broader strategy to accelerate revenue growth, restore profitability, and rebuild reserves. The company aims to strengthen its business resilience and boost shareholder returns.
MTN Nigeria highlighted that the tariff increase will be implemented in conjunction with the industry body and regulatory authorities. The company believes that this move will support continued investment and the long-term sustainability of the industry.
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In addition to the tariff hike, MTN Nigeria is also working to reduce its exposure to US dollar volatility. The company has made significant progress in this regard, reducing its outstanding letters of credit obligations from $416.6 million as of December 31, 2023, to $243.4 million as of March 31, 2024.
Furthermore, MTN Nigeria is reviewing its tower lease contracts with key towerco service providers to optimize costs and improve operational efficiency.
The company is confident that these initiatives will accelerate the recovery of its earnings and restore its net asset position faster. If successful, these negotiations could result in improvements that will help the company mitigate macro risks impacting its business, including foreign exchange fluctuations.
Source: Naija News
