MTNN Eyes Dividend Resumption as Q1 Profit Hits N133.7bn

Samuel Mobolaji

The CEO of MTN Nigeria Communications Plc (MTNN), Karl Toriola, said the Company is on a clear path to resuming dividend payments to its shareholders, driven by the successful implementation of its comprehensive five-point strategic recovery plan.

In an interview on Arise TV, Toriola expressed optimism that the company will not only eliminate its negative shareholder funds but also build up sufficient distributable reserves within the current year, paving the way for future dividends.

“Through the course of this year, we will clear our negative shareholder funds, and we will start to build the distributable reserves so that we can pay dividends in due course,” the CEO stated.

According to him, this positive outlook is a direct result of the diligent execution of the five-point plan, which was designed to address previous financial challenges and restore the company to a robust financial footing.

“The plan has already yielded significant results, including a substantial reduction in foreign exchange exposure, cost savings through an expense efficiency program, and more favourable terms from renegotiated tower policies. The ability to rebuild shareholder funds is a critical prerequisite for any company to declare and pay dividends,” he added.

Toriola indicated that, MTN Nigeria is systematically addressing this, with the ultimate aim of rewarding its investors, saying, “the successful progression of this plan, coupled with improving naira stability and the benefits of a recent tariff adjustment, is creating the financial environment necessary for MTN Nigeria to move towards a position where it can sustainably return value to its shareholders through dividends.”

While a specific timeline for the resumption of dividend payments was not provided, the CEO’s remarks suggested that the company is making tangible progress towards this important goal for its investors.

The company started the year 2025 on a strong financial position, recording profa it after tax of N133.7 billion in first quarter (Q1) 2025 as against a loss of N392.7 billion in Q1, 2024. While earnings per share stood at N6.38.

Toriola stated that, “We are pleased with our performance in the first quarter of 2025, which reflects the continued execution of our strategic priorities and the resilience of demand for our services. Building on the momentum from Q4 2024, our Q1 results place us firmly on the path to restoring profitability and achieving a positive net asset position within the current financial year, while increasing our investments to improve network and service quality.”