MTN Nigeria has reported a staggering N400.44 billion loss after tax for the year ended December 31, 2024, marking a 192% increase from the N137.02 billion loss recorded in 2023.

The telco attributed this loss primarily to the devaluation of the naira, which caused a sharp spike in foreign exchange (forex) losses, significantly impacting its financial position.

According to its audited financial statements released on Thursday, forex losses surged to N925 billion in 2024, up from N740 billion in the previous year. This emanated from the depreciation of the naira, which fell from N907/$ at the end of 2023 to N1,535/$ by December 2024, making it more expensive for MTN to service its foreign-denominated obligations, such as network expansion costs and equipment purchases.

However, MTN Nigeria’s revenue grew by 36% to N3.36 trillion in 2024, up from N2.47 trillion in 2023, driven by continued demand for data and digital services. But the mounting forex losses overshadowed these gains, leaving the company in a negative retained earnings position of N607.5 billion as of December 2024.

Telecom Sector Bedeviled by Nigeria’s Harsh Economic Realities

For years, the telecommunications sector has been Nigeria’s economic cash cow, contributing significantly to the Gross Domestic Product (GDP) and serving as one of the most stable industries in the country. However, the sector has struggled under Nigeria’s harsh economic realities, facing challenges such as:

• Soaring operational costs due to the high cost of diesel to power base stations amid Nigeria’s unstable electricity supply.
• Forex volatility has significantly increased the cost of importing telecom equipment.
• Regulatory constraints, particularly restrictions on tariff hikes, limited the operators’ ability to adjust prices in line with inflation and currency depreciation.

These challenges have led to huge financial losses for telecom operators, with MTN Nigeria being the most affected due to its size, scale of operations, and foreign currency exposure.

Delayed Tariff Adjustment

The Nigerian Communications Commission (NCC), which regulates the telecom sector, had long resisted allowing operators to increase tariffs despite repeated appeals from telcos. Until recently, telecom operators struggled to recover their costs, as their revenues were not keeping pace with the soaring expenses driven by inflation, forex devaluation, and energy costs.

After years of lobbying, the NCC finally approved a 50% upward review in call, data, and SMS tariffs, granting operators some relief to offset their rising costs.

The tariff hike, which was officially implemented in early 2024, marks a major shift in the industry and is expected to significantly reduce losses for telecom companies.

According to industry analysts, this tariff review, coupled with internal cost-cutting measures and operational adjustments, should help MTN Nigeria and other telcos stabilize their financials and return to profitability.

MTN Nigeria’s CEO, Karl Toriola, expressed confidence in the company’s ability to bounce back, citing the resilience of its business model and recent regulatory approvals as key factors that will aid recovery.

“We are encouraged by the resilience of our business in FY 2024, which reflects our strong commitment to driving growth and managing costs. Despite facing significant macroeconomic headwinds, including record-high inflation, as well as ongoing currency and energy price volatility, we remained focused on executing our strategy and creating long-term value for our stakeholders,” he said.

Toriola also acknowledged the recent tariff adjustments as a positive step: “We are grateful to the authorities for the recent approval of tariff adjustments, which are essential for our industry’s sustainability and crucial for addressing our negative capital position,” he said.

While MTN Nigeria’s revenue growth indicates that demand for telecom services remains strong, industry analysts believe that the company’s future profitability will depend largely on the following issues:

• Impact of the New Tariff Structure – The approved 50% tariff hike is expected to boost revenues in the coming quarters, but its effectiveness in fully offsetting forex losses remains to be seen.
• Operational Efficiency – The company will need to cut costs and improve efficiency to maximize the impact of the new tariffs.
• Government Policies – The regulatory environment will continue to play a major role in the telco’s financial health, especially regarding future price adjustments and forex availability.

As I always remind young people, when a company says “Welcome to the family”, do not be confused because no company can be your family. Yes, you’re nobody’s kid at work. The rule is clear: get your job done, get paid etc but if necessary, the mission can move on without you. A real family will not throw you under the bus because of missed earnings or due to a recession! That takes me to Ukraine whose president is learning hard on the job. Yes, nobody really cares because the world does not care.

Read Trump after today’s meeting with Ukraine’s leader…

“We had a very meaningful meeting in the White House today. Much was learned that could never be understood without conversation under such fire and pressure. It’s amazing what comes out through emotion, and I have determined that President Zelenskyy is not ready for Peace if America is involved, because he feels our involvement gives him a big advantage in negotiations. I don’t want advantage, I want PEACE,” Trump.

“He disrespected the United States of America in its cherished Oval Office. He can come back when he is ready for Peace.”

A meeting between Ukrainian President Volodymyr Zelensky, U.S. President Donald Trump, and U.S. Vice President JD Vance turned contentious at the White House. Trump criticized Zelensky for perceived disrespect and lack of gratitude for U.S. support in the Ukraine-Russia conflict, while Vance questioned Zelensky’s diplomatic approach. The discussions highlighted tensions over U.S. aid, military strategy, and diplomatic respect.

JD Vance and Trump just put Zelensky in his place. Wow. Watch this.

pic.twitter.com/zndgjKEPKz

— End Wokeness (@EndWokeness) February 28, 2025

Comment on Feed

Comment 1: I totally agree with you, success in both business and geopolitics is driven by value, not sentiment. Companies and nations prioritize strategy over emotions—no one pauses for those who don’t add value. Stay relevant, adaptable, and in control of your own narrative, because in the end, only results secure your place at the table.

Lafarge Africa Plc has released its financial results for the year ending December 31, 2024, reporting a pre-tax profit of N152.2 billion, a significant 93.27% increase compared to the N78.7 billion recorded in 2023.

This performance comes despite escalating production costs, rising taxation, and economic uncertainties that have affected Nigeria’s business environment.

The company’s revenue surged by 71.83%, reaching N696.7 billion, compared to N405.5 billion in the previous year. Cement sales contributed 97% of total revenue, highlighting Lafarge’s dominance in Nigeria’s construction sector. Additionally, total assets grew by 45.37% to N990.5 billion, reinforcing the company’s financial strength.

This report comes at a time when the Nigerian government is urging cement manufacturers to lower cement prices to N7,000 per bag, citing better FX rates. However, manufacturers, including Lafarge and its competitors, have pushed back against these calls, citing an unfriendly business climate, rising production costs, and heavy taxation as reasons for the persistently high price of cement.

The Nigerian cement industry has remained a key driver of economic growth and infrastructure development, contributing significantly to GDP and employment. However, the sector has struggled under the weight of rising input costs, energy expenses, and multiple taxes imposed by the government.

The government’s recent appeal to cement manufacturers to bring down prices to N7,000 per bag has sparked debate. While authorities argue that lower prices will ease the burden on citizens and stimulate construction activity, cement manufacturers insist that the current economic environment does not support such price reductions.

Aliko Dangote, chairman of Dangote Cement, a key rival of Lafarge Africa, recently detailed the tax burden faced by cement manufacturers, stating that for every N1 generated in revenue, 52 kobo is paid in taxes to the government. He highlighted the following taxes affecting the industry:

• 30% corporate tax
• 7.5% value-added tax (VAT)
• 2% education tax
• 1% health tax
• 10% withholding tax on dividends paid to shareholders

According to Dangote, these taxes, coupled with soaring energy costs and foreign exchange volatility, have significantly eroded profit margins, making it difficult for companies to lower cement prices without financial losses.

Financial Performance Breakdown

Lafarge Africa’s revenue of N696.7 billion in 2024 represents its highest earnings on record, reflecting the company’s ability to expand market share and sustain demand for its products. However, the cost of sales surged by 76.09%, reaching N350 billion, driven by higher costs for fuel, power, and raw materials.

Fuel and power expenses alone amounted to N158.7 billion, while raw materials and consumables cost the company N73.4 billion. These rising expenses have forced Lafarge to adjust pricing strategies to maintain profitability, further justifying the company’s reluctance to implement government-mandated price cuts.

Despite higher costs, gross profit increased by 67.72% to N346.7 billion, compared to N206.7 billion in 2023. However, operational expenses also saw a sharp rise.

Selling and distribution expenses climbed to N120.4 billion, marking a 54.28% year-over-year increase, largely due to higher transportation and logistics costs. Administrative expenses also rose to N40.1 billion, up from N27.5 billion the previous year, mainly driven by technical service fees and staff-related expenses.

Lafarge recorded a substantial increase in other income, which surged by 706.05% to N7.1 billion, compared to N891.7 million in 2023. This growth was largely attributed to the reversal of an impairment charge on property, plant, and equipment valued at N4.6 billion, along with a government grant of N1 billion.

However, finance income declined by 55.70%, falling from N4.6 billion in 2023 to N2 billion in 2024, reflecting lower returns on cash reserves. At the same time, finance costs surged by 63.76% to N42.5 billion, driven by higher interest rates and debt servicing costs.

Nonetheless, pre-tax profit soared by 93.27% to N152.2 billion, demonstrating Lafarge Africa’s ability to maintain profitability despite economic hurdles.

Strong Asset Growth and Financial Position

Lafarge Africa’s total assets increased to N990.5 billion, a 45.37% rise from the N681.3 billion reported in 2023. Non-current assets climbed to N576.5 billion, reflecting investments in property, plant, and equipment, while current assets grew to N414 billion, up from N239 billion in the prior year.

Within its asset portfolio, cash and cash equivalents stood at N237.8 billion, providing the company with a strong liquidity position. Inventory levels also rose significantly, with spare parts accounting for N52.5 billion and finished goods valued at N25 billion.

Lafarge Africa’s retained earnings increased by 28.29% to N315.5 billion, reflecting its commitment to long-term financial stability and reinvestment in operations.

Lolu Alade-Akinyemi, CEO of Lafarge Africa, expressed confidence in the company’s financial performance and strategic direction, emphasizing the company’s ability to navigate a challenging business environment while delivering record-breaking revenue and profits.

“I am excited to report our record-breaking revenue of N697 billion and PAT of N100 billion for the full year 2024, a testament to our strong market positioning, operational efficiency, cost management, and dedication to value creation.

“Despite a challenging business environment, we have remained resilient, leveraging innovation and green growth in line with our sustainability ambitions, while also delivering value to our stakeholders,” he said.

Dividend Declaration

As part of its commitment to rewarding investors, Lafarge Africa declared a final dividend of 120 kobo per unit of 50 kobo ordinary shares, subject to shareholders’ approval and tax deductions. The dividend will be payable to shareholders whose names appear in the Register of Members as of March 28, 2025.

This dividend declaration reflects Lafarge’s financial strength and its ability to maintain investor confidence despite broader economic pressures.

What is your business Vision? And how does that Vision drive the Mission of the firm? It is easier to assemble the best to accomplish challenging tasks than to pursue something boring. Indeed, you can recruit more talented people for a journey to the moon, than to go and dig a ground, because going to the moon is more challenging, and also more exciting. Think about it: nearly every kid will like to work for NASA over one tunnel-boring company because NASA inspires.

In this lecture, I will explain how crafting a winning Vision can help you to attract and retain the best, and in that process, you can win the market. Aspirational vision with a purpose built into it will activate all the necessary factors of production, from capital to labour, and beyond, at scale.

“I want to organize the world’s information” is more inspiring than “I am building a website to store data”. I want “to build a digital human community for all people in the world” is better than “I am creating a website where people share photos and videos”.

What is your business vision? How can you create a great one? Join me tomorrow at Tekedia Mini-MBA Live as I teach on “Creating and Executing Strong Business Vision”. Zoom link in class board https://school.tekedia.com/course/mmba16/

Sat, March 1 | 7pm-8.30pm WAT | Creating and Executing Strong Business Vision  – Ndubuisi Ekekwe

The Federal Competition and Consumer Protection Commission (FCCPC) has ordered MultiChoice Nigeria to suspend its planned price increase for DStv and GOtv subscriptions until the conclusion of an ongoing investigation.

The regulatory intervention comes as Nigerians express growing frustration over frequent price hikes by the South African pay-TV operator.

This directive follows MultiChoice’s request for an extension regarding its scheduled appearance before the FCCPC, initially set for February 27, 2025. The consumer watchdog granted the request but rescheduled the investigative hearing for March 6, 2025. The company must now appear with all relevant officers and provide a comprehensive response regarding the justification for its proposed price increase.

In the meantime, MultiChoice is required to maintain its current pricing structure.

In a statement released on Tuesday, the FCCPC made it clear that MultiChoice must refrain from implementing any price changes until the investigation is completed.

“Pursuant to this, MultiChoice is expressly instructed to maintain the existing price structure as of February 27, 2025, pending the Commission’s review and final determination on the matter,” the FCCPC stated.

The Commission emphasized that suspending the price hike is necessary to prevent consumer exploitation and ensure fairness in the pay-TV market.

MultiChoice’s History of Price Hikes and Regulatory Battles

MultiChoice Nigeria has developed a reputation for frequent price adjustments, often citing economic factors such as inflation, foreign exchange volatility, and operational costs as justification. However, each time the company announces a price increase, it faces regulatory scrutiny.

This is not the first time MultiChoice has been summoned by the FCCPC or other agencies. The company has previously faced investigations and lawsuits over pricing, with regulatory bodies accusing it of failing to offer flexible and competitive pricing models for Nigerian consumers.

However, MultiChoice has historically emerged victorious in most regulatory battles, as Nigerian laws do not impose strict price controls on private businesses. This has allowed the company to proceed with its increments after justifying them as necessary for sustainability.

Will the FCCPC Approve Another Price Increase?

Unlike previous price hikes that were eventually approved, there is no certainty that the FCCPC will allow this latest increment to proceed. A key reason is that MultiChoice already increased its subscription prices twice in 2023, first in April and then again in November. Another hike was implemented on May 1, 2024, further fueling consumer outrage.

With three price increases in less than two years, the FCCPC may take a stricter stance this time.

Breakdown of MultiChoice’s Planned Subscription Price Hike

On Monday, MultiChoice Nigeria informed its customers of yet another price increase, set to take effect from March 1, 2025. The planned increments are significant across all DStv and GOtv packages.

DStv Price Adjustments:

• DStv Compact: N15,700 – N19,000 (25% increase)
• DStv Compact Plus: N25,000 – N30,000 (20% increase)
• DStv Premium: N37,000 – N44,500 (20% increase)

GOtv Price Adjustments:

• GOtv Jinja: N3,600 – N3,900
• GOtv Jolli: N4,850 – N5,800
• GOtv Max: N7,200 – N8,500
• GOtv Supa: N9,600 – N11,400
• GOtv Supa Plus: N15,700 – N16,800

The repeated price increases have had a direct impact on MultiChoice’s subscriber base. The company reported that in just six months (April to September 2024), its Nigerian operations lost 243,000 subscribers across DStv and GOtv services.

MultiChoice attributed this decline to high inflation (over 30% as of late 2024) and rising cost of living.

These losses highlight the growing disconnect between MultiChoice’s pricing strategy and the economic reality facing Nigerian households.