MTN Announces Plans To Increase Call Tariff

MTN has disclosed its intention to implement an increase in call tariffs as a strategic measure to navigate the challenging operating landscape in the country.

Following its extraordinary general meeting, MTN released a statement on Friday addressing various key issues, prominently highlighting the imperative to address its negative net asset position.

MTN has outlined a series of initiatives aimed at bolstering revenue growth, restoring profitability, and fortifying its financial reserves to enhance business resilience and maximize shareholder returns.

Among these strategies, the telecommunications giant has proposed regulated tariff hikes as a means to drive revenue growth and enhance operational efficiency, ultimately facilitating margin recovery.

In its statement, MTN emphasized the importance of engaging with regulatory authorities, particularly through industry bodies, to implement tariff adjustments that can mitigate the impacts of challenging operating conditions.

The company stressed that such tariff increases are crucial to sustaining investments and ensuring the long-term viability of the telecommunications sector.

Additionally, MTN is actively addressing its exposure to foreign exchange (FX) volatility, particularly concerning outstanding letters of credit (LC) obligations.

By leveraging improved liquidity in the FX market, the company has significantly reduced its LC obligations, thereby minimizing FX-related earnings volatility.

Furthermore, MTN is reviewing its tower lease contracts with key towerco service providers to optimize existing agreements and mitigate operational risks.

MTN Nigeria is optimistic that these strategic interventions will accelerate the recovery of its earnings profile, expedite the restoration of its net asset position, and mitigate macroeconomic risks affecting its business operations, including FX volatility.