MTN Nigeria Communications Plc (MTNN) has experienced a significant surge in investor interest after the Nigerian Communications Commission (NCC) approved a 50% adjustment in telecom tariffs across the country.
On Tuesday, MTNN’s stock recorded the highest gain of the day, climbing by 10% and driving an upward movement on the Lagos stock exchange. The stock, which opened at N233 per share, closed at N256.30, reflecting an increase of N23.30 by the end of trading. A total of N1.63 billion worth of MTNN shares were traded, with the stock appreciating by 28.15% year-to-date.
MTNN considers the tariff increase a crucial step toward ensuring the long-term sustainability of the telecom sector, strengthening infrastructure, and enhancing service delivery. The adjustment is expected to empower millions of Nigerians and businesses while contributing to the nation’s economic growth.
In another positive development for investors, the NCC has renewed MTNN’s first 800MHz spectrum band (Channel 1) for an additional decade, extending its validity from January 1, 2025, to December 31, 2034. Similarly, the second 800MHz spectrum band (Channel 2), previously set to expire in 2030, has been extended by four more years, aligning both licences to a uniform expiration date of December 31, 2034.
Investor Confidence Grows
Investment analysts at Lagos-based Meristem have recommended buying MTNN and Airtel shares, citing positive growth prospects in the telecommunications sector. They predict that increasing demand for data, expanded network coverage, and the acceleration of 4G and 5G adoption will drive revenue growth in 2025. The possibility of further tariff adjustments could also boost earnings from both voice and data services.
Speaking on the recent tariff adjustment, Karl Toriola, CEO of MTN Nigeria, expressed gratitude to the government and regulatory bodies for their continued support in maintaining the sustainability of the telecom industry. He noted that the tariff increase would help MTNN sustain investments required to provide reliable, high-quality services to Nigerians.
Regarding the spectrum licence renewal, Toriola emphasized its importance in MTNN’s ongoing efforts to expand 4G connectivity and meet the rising demand for data services, reinforcing the company’s commitment to enhancing digital access for its customers.
With these developments, MTNN remains optimistic about its growth trajectory, positioning itself to play a leading role in Nigeria’s evolving digital landscape.
