MTN Share Price Surges 21% on Anticipated Hike in Tariff for Calls, Data
- MTN share prices have continued to surge since 2025, especially since the federal government confirmed the hike in tariff
- As at Monday, January 13, 2025, the share price was N242, marking a 21% appreciation from the N200 closing price on December 31, 2024
- Analysts still predict a target price of N254 for the shares, but there are concerns that January 2024 might be replaying out on the market
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Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
Amid discussions of an imminent tariff hike, MTN Nigeria's shares have appreciated by 21% just two weeks into 2025. This makes it one of the outstanding performers on the Nigerian Exchange Group (NGX) in 2025.
Stock market analysts say this impressive performance after an unfavourable 2024 is driven by positive sentiments and fueled by the anticipated hike in tariff prices.
Source: UGC
Recall that telecommunications operators have been agitating for an increase in call and data tariffs since 2024, and speculations arose last month that the increase would be approved in the first quarter of 2025.
Speaking during an interview on Arise TV, Karl Toriola, CEO of MTN Nigeria, warned that failure to adjust tariffs could jeopardize the telecom industry’s survival.
After months of negotiation by stakeholders and speculations by the public, Minister of Communication, Innovation, and Digital Economy, Bosun Tijani confirmed that there will be a tariff hike, although not up to 100% as the Telcos proposed.
MTN stock surges
On the tariff hike confirmation from the federal government, MTN stock prices appreciated even further.
Last week, the stock recorded two consecutive trading days of 10% gains, and Legit.ng confirmed that as of Monday, January 13, 2025, the MTN Stock price was N242. Compared to the closing price of N200 on December 31, 2024, the MTN stock price has climbed 21%.
Meristem Stockbrokers predicts a target price of N254.22k for MTN Nigeria stocks, and investors will be watching to see what happens.
Recall that MTN stock had performed below expectations in 2024. The stock appreciated in January to a peak price of N295 before starting a downtrend that ended in a losing year for its investors.
Is MTN stock repeating January 2024 trend?
There are questions as to whether January 2025 might simply be mirroring the bullish trend seen in January 2024 and whether a price slump lies ahead too.
According to a BusinessDay report, market indications show that the approval of tariff hikes by the Nigerian Communications Commission (NCC) played a role in this surge. Once the approval was confirmed, the bulls took over MTN stock on the exchange.
The appreciation aligns with CardinalStone's December 2024 report, in which they predicted a comeback in the MTN share price. This prediction was hinged on the telecom giant's policy moves and strategies, especially the adjustments in the renegotiated tower lease contracts.
The adjustments moved the USD components in its lease from 55-60% to 25-30%, to hedge against foreign exchange volatility and improve its finances.
NCC addresses data depletion complaints
In related news, Legit.ng reported that the NCC refuted allegations of widespread quick data depletion on mobile networks in Nigeria.
The clarification follows claims by subscribers that telecom operators had diminished the value of data packages offered to customers.
The commission stated that an audit conducted in the third quarter of 2024 found no evidence to support these allegations.
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Source: Legit.ng
