The Chief Executive Officer of MTN Nigeria, Karl Toriola, has clarified that the company will distribute dividends from 80% of its distributable reserves after approval of its model by the company’s board. He made this note in response to a question during a chat with fellows of the Media Innovation Programme in Lagos.
Despite having a track record of maintaining robust payout ratios, MTN Nigeria last paid dividends in 2023. This makes a two-year dividend pause an anomaly.
“What we said in the outlook is that we will get out of negative shareholder funds in Q3, which ends in September. But our policy states that we will pay 80% of distributable reserves. And, let me be clear, that still would have to be approved by the board”, he explained.
Recall that a recent report by CardinalStone predicted that MTN Nigeria’s equity will turn positive by Q3 2025. It added that the company will resume dividend payments later in 2025, marking the end of a two-year hiatus triggered by a negative equity position.
The report also posits that its rapidly improving balance sheet and strong operational performance position the company to reclaim its position as a top dividend-paying stock on the Nigerian Stock Exchange (NGX). The company’s strong operational momentum, evidenced by a 53.7% EBITDA margin in Q2 2025, supports this optimistic outlook.
Dividends are a key metric for investors, signalling a company’s financial health and commitment to shareholder value. MTN Nigeria has a track record of maintaining robust payout ratios, making its two-year dividend pause an anomaly.
A dividend comeback could attract institutional and retail investors, boosting the stock’s appeal on the NGX.
An impressive H1 for MTN Nigeria
Technext recently reported that MTN Nigeria experienced an impressive financial recovery in the first half of 2025. Here is an overview of the numbers:
– It reported a net income of N414.9 billion, a 180% year-on-year (YoY) increase compared to a N519.1 billion net loss in H1 2024.
-Its FX losses dropped from N887.7 billion in H1 2024 to just N5.2 billion in H1 2025. The 99% reduction reflects the market’s improved currency stability.
-It also reported a revenue turnover of N2.38 trillion, a 54% YoY increase from N1.54 trillion in H1 2024.
-This turnaround was driven by a drastic reduction in foreign exchange (FX) losses and robust revenue growth, owing largely to the Central Bank of Nigeria’s (CBN) market harmonisation policies and the NCC’s approval of new tariffs.
A better outlook for the MTN Group
Overall, the MTN Group reported a significant growth in earnings during the first half of 2025.
-The company expects a 200% improvement in earnings per share (EPS), up from the 409-cent loss in the first half of 2024. It also expects a headline earnings per share (HEPS) owing to strong commercial execution, disciplined capital allocation, and improved macro conditions.
-H1, 2025 results by MTN Nigeria and MTN Ghana indicate pleasing growth in service revenue and profitability, while the South African market faced challenges, particularly within the prepaid segment.
-Specifically, MTN Rwanda reported a 3.5% subscriber growth year-on-year (YoY) to 7.8 million, a Profit After Tax (PAT) of Rwf 6.3 billion (a159.6% increase from 2024). The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 43.7% YoY to Rwf 56 billion, with an EBITDA margin of 40.4%.
-Similarly, MTN Uganda also recorded a 9.7% YoY profit after tax (PAT) drop to Ush 267 billion. It also posted a 10.2% growth in subscriber base to 22.8 million, an EBITDA increase of 17.8% YoY, and an EBITA margin growth of 21.8%.
