MTN Nigeria has vested 1,303,029 shares in 33 of its executives, according to multiple corporate disclosures filed with the Nigerian Exchange Limited (NGX). The vesting took place between March 26 and 28, 2025 is part of the company’s Performance Share Plan (PSP) to incentivise and retain its top talent.
Vesting allows employees to gradually earn ownership of company shares over a specified period, typically as a reward for performance and loyalty. According to the company’s audited financial report for 2024, the PSP targets employees at levels 3, 4, 5, and 6, granting them share rights that vest after three years.
Among the top beneficiaries of the vesting are key executives instrumental to MTN Nigeria’s operations.
Company Secretary Ukpanah Uto received 85,213 shares, while Chief Financial Officer Kadri Modupe was vested with 187,496 units, the highest allocation among the group. General Manager of Internal Audit and Fraud Management Etea Ibe secured 110,721 shares; Chief Technical Officer Ibrahim Yahaya received 96,726 units; and General Manager of Finance Business Reporting Akinola Stephen was given 83,959 shares.
The share vesting, valued at about N319.24 million based on the NGX closing price of N245 per share on Friday, March 28, 2025, underscores MTN Nigeria’s strategy to align employee interests with long-term shareholder value.
This move comes against the backdrop of a challenging financial year, with the company reporting a N400.44 billion loss after tax for 2024, driven by significant foreign exchange losses due to the naira’s depreciation.
“The PSP was established to attract, retain, and reward selected employees capable of contributing to the business of the employer companies,” the report stated. “It aims to stimulate their involvement, encouraging their continued service and motivating them to advance the interests of the relevant employer company and the Group in general,” it further explained.
MTN Nigeria’s N400.44bn loss in 2024
Despite this positive step for employee compensation, MTN Nigeria’s financial performance in 2024 paints a starkly different picture. The company, which serves over 80 million customers, reported a loss after tax of N400.44 billion for the year ended December 31, 2024, a 192% increase from the N137.02 billion loss recorded in 2023.
This downturn was attributed to the naira’s sharp depreciation, which exacerbated the company’s foreign exchange exposure. Forex losses surged to N925 billion in 2024, up from N740 billion the previous year, as the naira weakened from N907 per US dollar at the end of 2023 to N1,535 per dollar by December 31, 2024.
The devaluation, triggered by the government’s forex unification policy in June 2023, has significantly increased the cost of servicing foreign currency-denominated obligations, a challenge faced by many Nigerian firms reliant on imported equipment and services.
In its financial statement, MTN Nigeria highlighted the macroeconomic headwinds that compounded its difficulties, including record-high inflation and rising energy costs. Nevertheless, the company achieved a 36% revenue increase, reaching N3.36 trillion in 2024 from N2.47 trillion in 2023, driven by strong demand for data and digital services.
“Despite facing significant macroeconomic challenges, we remained focused on executing our strategy and creating long-term value for our stakeholders,” the company noted.
Analysts see the share vesting as a strategic move to boost morale and retain talent amid these financial strains. The company’s efforts to renegotiate tower lease agreements with partners like IHS Towers, shifting to naira-based contracts with minimised US dollar exposure, have also been lauded as a step toward mitigating forex-related losses.
Looking ahead, MTN Nigeria remains optimistic about a recovery in 2025, buoyed by tariff hikes, network expansion, and improved forex market liquidity, reduced its outstanding letters of credit obligations by 95% to $20.8 million.
However, its profitability will depend on stabilising the naira and managing operational costs in an increasingly volatile economic environment.
For now, the vesting of shares signals confidence in its leadership, even as the company navigates one of its toughest financial periods since listing on the NGX in 2019.
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