Shares of MTN Nigeria Plc soared to the maximum allowable daily gain of 10 per cent on the Nigerian Exchange Limited (NGX) after the Federal Government approved a 50 per cent tariff hike for telecom operators.
The surge in investor confidence added an impressive N490bn to the telecom giant’s market capitalization, underscoring the market’s optimistic outlook for the company’s future earnings.
At the close of trading, MTN Nigeria’s stock price climbed from N228.00 per share to N266.30 per share, boosting its market value from N4.891tn to N5.381tn.
This significant milestone comes as experts project further growth potential driven by stronger earnings expectations in the wake of the tariff adjustment.
The Nigerian Communications Commission had announced the 50 per cent tariff adjustment after protracted deliberations with stakeholders.
The move aims to address the economic challenges facing the telecom sector, ensuring its sustainability and enabling continued investment in critical infrastructure and services.
Market sentiments responded positively, with analysts viewing the adjustment as a long-overdue measure to support the industry’s long-term viability.
In an official notification to the NGX and the investing public, MTN Nigeria confirmed the approval, describing it as a pivotal development for the telecom industry and the broader economy.
Karl Toriola, Chief Executive Officer of MTN Nigeria, expressed gratitude to the Federal Government, the Minister of Communications, Innovation and Digital Economy, the NCC, and industry stakeholders for their collaborative efforts.
“We deeply appreciate the Federal Government of Nigeria, the Minister of Communications, Innovation and Digital Economy, the NCC, and our industry bodies for their continued support in ensuring the telecoms sector remains sustainable,” said Toriola.
“This tariff adjustment represents an important step towards addressing the impacts of prevailing economic challenges on our business and industry. It will enable us to maintain the critical investments required to deliver reliable, high-quality services to Nigerians. We remain committed to supporting Nigeria’s digital transformation agenda and driving inclusive growth for all stakeholders.”
The tariff hike is expected to bolster MTN Nigeria’s revenue streams, facilitating its ability to invest in network upgrades and expansion. This, in turn, will enhance service delivery and support the country’s ongoing digital transformation initiatives.
As one of Nigeria’s leading telecom operators, MTN Nigeria plays a crucial role in connecting millions of people and businesses, contributing significantly to the nation’s economic growth.
