By OpeOluwa Okudero 
In a bold move that reflects both its financial resilience and the confidence investors have in its future, MTN Nigeria has raised₦75 billion through an oversubscribed commercial paper issuance. Originally seeking ₦50 billion, the company ended up issuing ₦75.18 billion, which is way above its target by 50%, signaling a high level of investor optimism.
The successful issuance, a part of MTN’s₦250 billion Commercial Paper Issuance Programme, came at a time when many companies in Nigeria are struggling with economic volatility. MTN Nigeria’s nine-month financial report for 2024 highlighted a loss after tax of ₦514.9 billion, largely caused by the dramatic devaluation of the Nigerian Naira and hefty foreign exchange losses. Despite these setbacks, the telecom giant’s has displayed its confidence in its ability to attract strong investor interest.
Strategic Growth in Data and Fintech Drives Investor Confidence
What stands out is MTN’s ability to weather economic storms while maintaining momentum in key revenue-generating areas like data and fintech. The company saw a 33.6% increase in service revenue, with data services rising by over 50% and fintech growing by 18%. These areas of growth reveal an important shift in consumer behaviour, with more Nigerians relying on digital services. Investors appear to view MTN’s strategic investments in data and fintech as future-proofing its business model, giving them the confidence to back the company despite the broader financial challenges.
The oversubscription of the commercial paper also speaks to the shifting dynamics in Nigeria’s capital markets. Institutional investors, including asset managers and banks, seem increasingly inclined to back companies with strong fundamentals and growth potential, especially in the tech and telecom sectors. This is a sign that, while economic uncertainty looms, sectors that provide essential services like telecommunications and digital finance are seen as stable long-term bets.
Interestingly, the exclusion of pension funds from the offering due to the temporary suspension by the National Pension Commission shows the evolving regulatory landscape, which could affect investor behaviour moving forward. However, the absence of pension funds didn’t appear to dissuade investor eagerness, indicating a healthy appetite for commercial paper in the market, especially from institutional investors with high liquidity needs.
Looking ahead, MTN Nigeria’s successful ₦75 billion commercial paper raise highlights its ability to remain a key player in the Nigerian economy, even as external challenges mount. It’s a story not just about overcoming losses, but also about repositioning itself for the future by focusing on revenue streams that are increasingly vital in today’s digital-first world.
Susan Olalere
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