MTNN rallies most on tariff hike

Investors are further increasing their stakes in the shares of MTN Nigeria Communications Plc (MTNN) after the Nigerian Communications Commission (NCC) approved a 50 percent tariff adjustment for telecoms operations in Nigeria.

Shares of MTNN moved up the most on Tuesday by 10 percent, helping to strengthen the Lagos Bourse movement upwards. MTNN which opened for trading on Tuesday at N233 rose to N256.30, after adding N23.30 at the close of trading. Investors traded N1.631billion shares of MTNN on Tuesday. MTNN stock has risen this year by 28.15 percent.

MTNN sees 50 percent hike in tariff as a significant milestone in ensuring the long-term sustainability of the telecoms industry, supporting the country’s critical infrastructure and services, while empowering millions of people and businesses and contributing to the country’s overall economic development.

In another boost to investors appetite for MTNN shares, the NCC approved the renewal of its first 800MHz Spectrum band licence (Channel 1) for an additional ten years, effective January 1, 2025 to December 31, 2034.

The NCC has also approved the extension of the second 800MHz spectrum band licence (Channel 2), which expires on December 31, 2030, for an additional four years, with a new end date of December 31, 2034.

The extension aims to harmonise the tenure of the Company’s 800MHz spectrum licences so that they jointly expire on December 31, 2034 for ease of subsequent renewals.

Read also: Airtime demand seen unchanged as tariff set to rise

Recently, Lagos-based Meristem analysts asked investors to buy shares of MTNN and Airtel. Though, Airtel Africa Plc through Barclays Capital Securities Limited (Barclays) is currently doing share buy-back in newest move to return $100 million to its shareholders.

“The outlook for the telecommunications sector in 2025 remains positive, supported by strong prospects for sustained revenue expansion. This growth is expected to be driven by initiatives aimed at scaling data traffic, expanding network coverage, and accelerating the adoption of 4G and 5G technologies,” Meristem analysts said.

“These efforts could be further supported by rising consumer demand for digital services and increasing internet penetration in key markets. Additionally, a likely approval by telecom regulators to implement tariff adjustments for operators could boost both data and voice revenue in 2025,” the analysts noted further.

Karl Toriola, CEO, MTN Nigeria said: “We deeply appreciate the Federal Government of Nigeria, the Honourable Minister of Communications, Innovation and Digital Economy, the NCC and our industry bodies for their continued support in ensuring the telecoms sector remains sustainable”.

He further said, “This tariff adjustment represents an important step towards addressing the impacts of the 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.”

Also, commenting on the renewal of the first 800MHz Spectrum band licence transactions, Toriola said: “We are pleased with the successful renewal and harmonisation of our 800MHz spectrum licences, which lay a solid foundation for the ongoing delivery of 4G services to our customers.

This enables us to continue to meet the demand for data and is integral to our broader strategy for enhancing connectivity.”