MTN Nigeria Announces Plan For Call Tariff Increase

MTN Nigeria Announces Plan For Call Tariff Increase

MTN Nigeria has revealed its intention to raise call tariffs as part of its strategy to navigate the challenging operating environment in the country. Following an extraordinary general meeting, the telecommunications giant disclosed that addressing its negative net asset position was a top priority……READ ALSO MTN Nigeria Issues N110bn First Telco Bond

In a statement released after the meeting, MTN outlined various initiatives aimed at accelerating revenue growth, restoring profitability, and bolstering reserves to enhance business resilience and shareholder returns. These initiatives include regulated tariff adjustments, which are expected to stimulate revenue growth and enhance operational efficiency by driving margin recovery.

Engagement with regulatory authorities, facilitated through industry bodies, is underway to discuss tariff increases as a means to mitigate the impact of challenging operating conditions. MTN emphasized the importance of appropriate tariff adjustments to support continued investment and ensure the long-term sustainability of the telecommunications industry.

Additionally, MTN Nigeria is focused on reducing its exposure to US dollar volatility, particularly concerning outstanding letters of credit obligations incurred to support capital expenditure requirements. The company has utilized improved liquidity in the foreign exchange market to reduce the balance of outstanding LC obligations significantly.

Furthermore, MTN is reviewing tower lease contracts with key towerco service providers to optimize existing agreements. These initiatives, according to MTN, are expected to accelerate the recovery profile of the company’s earnings and expedite the restoration of its net asset position.

MTN Nigeria expressed optimism that successful negotiations could lead to improvements that would help mitigate macroeconomic risks affecting its business, including foreign exchange fluctuations.

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