MTN Clears $105m Dollar Loans, Swings to N36bn Forex Gain

MTN Nigeria Communications recorded a net foreign-exchange gain of N36.4 billion in the first half of 2026, reversing a N5.2 billion loss in the same period last year, as a stronger naira and the elimination of its foreign-currency loans bolstered earnings.

The country’s largest mobile network operator said it had fully repaid its outstanding dollar-denominated loans, which stood at $105 million at the end of December 2025. The move significantly reduced its exposure to currency fluctuations and strengthened its financial resilience.

Underlying net finance costs declined by 20.4 percent, supported by lower borrowings and greater stability in the naira, MTN Nigeria said in its latest earnings release on Thursday.

The improved financing environment, combined with stronger earnings and disciplined capital allocation, lifted free cash flow by 73.9 percent to N712.7 billion.

Retained earnings nearly doubled, rising by 98.1 percent to N793.1 billion, while shareholders’ equity climbed by 69.6 percent to N930.6 billion.

The increase in equity came despite the payment of a N314.6 billion final dividend in May 2026, underscoring the improvement in MTN Nigeria’s balance sheet and cash-generating capacity.

The latest figures mark a further recovery for the telecoms company, whose financial performance had previously come under pressure from naira depreciation and the higher cost of servicing foreign-currency obligations.