MTN Nigeria, the largest market for MTN Group, has lost its position as the telco's highest revenue generator for the first time since 2019. The company's service revenue declined by 15.4% to R177.8 billion ($9.8 billion) in 2024, reversing the steady growth of previous years. This decline is attributed to foreign exchange losses and inflation, which have dragged the company into a post-tax loss of over ₦400 billion ($266 million).

The naira devaluation has made network equipment, loan repayments, and operating costs more expensive, affecting MTN Nigeria's profitability. Despite generating ₦3.3 trillion in service revenue, its value collapsed when converted to dollars ($2.2 billion). This decline comes notwithstanding MTN's increased investment in infrastructure upgrades in Q4 2024, which likely shows that the company may not be reaping any benefits from its investments in Nigeria.

The slump could complicate the telecom operator's plans to invest more in upgrading its core network infrastructure planned for Q1 2025. Less funding for expansion and network upgrades could weaken MTN Nigeria's position in the highly competitive market. However, as one of the consistent top revenue drivers for the business, it is unlikely that the Group company will deprioritize its Nigerian subsidiary, where it controls more than half of the telecom market.

On a positive note, the approved telecom tariff hike in Nigeria is a strong positive for telecom companies like MTN Nigeria looking to recover losses in the market. With Nigeria's growing data demand, the average revenue per user on data services could see strong growth, tipping the scales for MTN Nigeria. Additionally, the naira has stabilized in recent months, leading to stable operating margins for the company. Industry experts predict that MTN will want to wait out another quarter or two to see how its Nigerian business bounces back.

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Furthermore, Sycamore, a fintech company, has acquired a fund manager license from Nigeria's Securities Exchange Commission (SEC) to bridge the gap between high-net-worth investment firms and retail-focused fintechs. The company aims to turn borrowers into long-term investors, carving out a niche in Nigeria's fast-evolving investment space.

Starlink, a satellite internet service provider, is set to launch its ground station in Mozambique by the end of March 2025, strengthening its connectivity in remote areas of the country. This move is part of the company's aggressive expansion into Africa, where it currently operates in 18 countries.

Nigeria's inflation rate has slowed to 23.2% in February, thanks to cheaper fuel and a stable naira. However, analysts warn that inflation could pick up again by April, driven by broader economic pressures.