MTN Nigeria Communications recently announced that its financial performance was negatively impacted by the devaluation of the naira against the dollar in the latter half of 2023. This devaluation led to increased operating and net finance costs, as well as foreign exchange losses.
Financial Results
- The reported loss after tax for 2023 was 137.0 billion naira ($85 million), a significant shift from the restated profit after tax of NGN348.7 billion in 2022.
- This resulted in negative retained earnings and total equity of NGN208.0 billion and NGN40.8 billion, respectively, by the end of December 2023.
Restatement of Financial Results
A review conducted by MTN Group highlighted the impact of the naira’s devaluation on the financials of its Nigerian subsidiary. It was noted that while tower lease costs were treated as naira-based, unrealized foreign exchange losses from the remeasurement of outstanding lease liabilities were not accounted for using the spot exchange rate ruling at each reporting period.
As a result, MTN Nigeria restated its financial results for the year ended Dec. 31, 2022, to reflect the foreign exchange effects and discrepancies in its accounting practices.
Moving Forward
Despite these challenges, MTN Nigeria expressed confidence in its ability to maintain resilient commercial and operational momentum in 2023.
For more information, please contact MTN Nigeria Communications directly.