MTN Nigeria is on a clear path to resuming dividend payments to its shareholders, driven by the successful implementation of its comprehensive five-point strategic recovery plan, according to CEO Karl Toriola.
In an interview on Arise TV on May 1, 2025, Toriola expressed optimism that the company will not only eliminate its negative shareholder funds but also build up sufficient distributable reserves within the current year, paving the way for future dividends.
“Through the course of this year, we’ll clear that [negative shareholder funds] and we’ll start to build the distributable reserves so that we can pay dividends in due course,” the CEO stated confidently.
This positive outlook is a direct result of the diligent execution of the five-point plan, which was designed to address previous financial challenges and restore the company to a robust financial footing. The plan has already yielded significant results, including a substantial reduction in foreign exchange exposure, cost savings through an expense efficiency program, and more favourable terms from renegotiated tower policies.
The ability to rebuild shareholder funds is a critical prerequisite for any company to declare and pay dividends. Toriola’s comments indicate that MTN Nigeria is systematically addressing this, with the ultimate aim of rewarding its investors.
The successful progression of this plan, coupled with improving Naira stability and the benefits of a recent tariff adjustment, is creating the financial environment necessary for MTN Nigeria to move towards a position where it can sustainably return value to its shareholders through dividends.
While a specific timeline for the resumption of dividend payments was not provided, the CEO’s remarks suggest that the company is making tangible progress towards this important goal for its investors.
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