Naira devaluation: MTN records first loss in 6 years

MTN Nigeria Communications Plc reported a loss after tax of N137 billion due to foreign exchange loss in 2023.

This is the telco’s first loss since it was listed on the Nigerian Exchange. It disclosed this in its earnings statement for the year ended 2023.

It noted that its net loss for the year has resulted in a depletion of its retained earnings and shareholders’ fund to negative N208.0 billion and N40.8 billion, respectively.

Karl Toriola, chief executive officer of MTN Nigeria, said, “The significant devaluation of the naira in 2023 resulted in a materially higher net forex loss of N740.4 billion (2022 restated: N81.8 billion), reflected within net finance costs, which resulted in a reported loss after tax of N137.0 billion compared to a restated PAT of N348.7 billion in 2022.”

He noted that the telco’s profit after tax would have been N344.5 billion if not for forex loss.