MTN Nigeria’s stock has surged by 21% since the start of 2025, emerging as one of the top-performing equities on the Nigerian Exchange Group (NGX). This recovery follows a challenging 2024, where the stock faced a 24% negative return.
The rebound has been largely attributed to the Nigerian Communications Commission’s (NCC) recent approval of tariff hikes in the telecommunications sector. Analysts say the market’s optimistic sentiment has pushed MTN’s stock price from ₦178 on December 23, 2024, to ₦242 as of January 9, 2025.
Drivers Behind the Rally
- Tariff Hike Approval
Reports of upcoming tariff increases, confirmed by the NCC, triggered bullish momentum in MTN Nigeria’s stock. The formal announcement added to investor confidence, making the stock a hot pick among market participants. - Strategic Financial Adjustments
MTN Nigeria’s strategic renegotiation of its tower lease agreements in 2024 laid the groundwork for better financial health. By reducing the USD component of its leases from 55–60% to 25–30%, the telecom giant mitigated its exposure to foreign exchange volatility.
While MTN experienced a similar bullish trend in early 2024, peaking at ₦295 on January 9 before a steep drop to ₦183 by March, analysts remain cautiously optimistic this time.
Meristem Stockbrokers projects further gains, with a target price of ₦254.22, suggesting that the upward trend may continue. Meanwhile, CardinalStone’s December 2024 report highlighted MTN’s potential for profitability, even without accounting for the effects of the recent rate hike.
Although MTN Nigeria’s resurgence marks a strong start to 2025, the sustainability of this upward trajectory remains uncertain. Investors are closely monitoring the stock’s performance, particularly given its historical volatility.
With strategic actions and favorable regulatory developments in place, MTN Nigeria is positioned to regain investor confidence. However, the market’s response to unfolding economic and industry dynamics will ultimately determine whether this rally has lasting momentum.
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