Rating Release

Agusto & Co. affirms the “Aa+’’ assigned to MTN Nigeria Communication PLC, with a stable outlook 

The rating expires on 30 June 2026. 

Agusto & Co. hereby affirms the “Aa+” rating assigned to MTN Nigeria Communications PLC (“MTN Nigeria” or “the Company”). The rating affirmation reflects the Company’s strong cash flow and liquidity profiles, primarily supported by its favourable trade terms with customers and suppliers, moderate leverage profile and its adequate working capital position. The rating is also bolstered by the improving industry fundamentals following the recent tariff adjustment, which should support full recovery in the Company’s bottom line and equity positions by the end of 2025. MTN Nigeria’s rating is also strengthened by its dominant status in the domestic telecoms space, evidenced by active mobile and data users of 84.1 million and 50.3 million, respectively as at the end of 31 March 2025 and investments to improve service quality. The rating also considers the Company’s extensive network infrastructure, which enhances market penetration, a broad range of spectrum licenses supporting its ongoing 4G and 5G expansion and a stable, qualified and experienced management team. However, the rating is constrained by the significant foreign exchange losses of over ₦1.7 trillion recorded in 2023 and 2024, which eroded its equity. At the same time, MTN Nigeria’s business remains susceptible to foreign exchange risks, primarily due to the dollar-denominated lease liabilities and other long-term borrowings, which may impair its financial flexibility in the event of further Naira devaluation. Similarly, the declining purchasing power of subscribers, combined with potential price sensitivity stemming from the new telecom tariff adjustments, could limit the Company’s revenue growth prospects in the short to medium term.

MTN Nigeria Communications PLC is a member of the MTN Group (“the Group”) – one of Africa’s leading telecommunications companies, with a presence in 16 countries in Africa and the Middle East, and a subscriber base of over 291 million users as at the end of 2024. MTN Nigeria is a dominant operator in the Nigerian Telecommunications Industry, controlling over 50% market share. The Company also enjoys strong technical support from the MTN Group, which is rated “Bb-” by S&P Global Ratings.