MTN Nigeria’s share price skyrocketed to ₦256 on Tuesday, a 9.87% increase, after regulators gave the green light for a 50% telecom tariff hike. This surge is a clear vote of confidence from investors in the company’s profitability, marking a significant turnaround after two years of sustained losses.

In contrast, rival Airtel Africa’s stock price remained steady at ₦2,159 on Tuesday, highlighting the limited impact of the Nigerian tariff adjustment on the company’s overall valuation. As Airtel Africa’s listing covers its entire African business portfolio, the Nigerian tariff hike has a relatively minor effect.

Tuesday’s price surge marks MTN Nigeria’s highest share price since March 2024, when it traded at ₦267.80. The company’s stock price has been on a rollercoaster ride since 2023, with profits plummeting due to naira devaluation and soaring inflation.

In the first nine months of 2024, MTN Nigeria reported a staggering loss after tax of ₦514.9 billion, a 59.2% decline from the previous year.

However, the approved tariff hike is expected to cushion the impact of macroeconomic challenges and support the company’s profitability. MTN Nigeria has been working tirelessly to accelerate its earnings and recover from losses. In its Q3 2024 earnings report, the company emphasized its focus on restoring its balance sheet, including raising fresh capital.

In a significant move, MTN Nigeria announced on January 17 that it had raised an additional ₦42.20 billion through commercial paper issuance. CEO Karl Toriola noted in the Q3 2024 earnings report, “Despite challenging conditions, we sustained growth in our underlying operating performance, underpinned by our resilient business model and operational agility.”