MTN Nigeria Poised to Distribute 80% of Distributable Reserves as Dividends
Shareholders of MTN Nigeria can look forward to a significant dividend payout as the telecommunications giant plans to distribute 80% of its distributable reserves. This positive development was clarified by MTN Nigeria’s Chief Executive Officer, Karl Toriola, who confirmed the company’s dividend policy, pending final approval from its board. Toriola made these remarks during an engaging session with fellows of the Media Innovation Programme in Lagos, providing crucial insights into the company’s financial strategy and its commitment to shareholder returns within the vibrant African tech and telecom sector.
Navigating a Two-Year Dividend Hiatus and Future Outlook
MTN Nigeria has historically maintained a strong record of robust payout ratios, making the recent two-year pause in dividend distribution a notable deviation. The company last disbursed dividends in 2023, creating anticipation among investors for its resumption. Mr. Toriola addressed this period directly, explaining the roadmap for future payouts. “What we said in the outlook is that we will get out of negative shareholder funds in Q3, which ends in September. But our policy states that we will pay 80% of distributable reserves. And, let me be clear, that still would have to be approved by the board,” he stated, emphasizing both the company’s commitment and the necessary governance process. This statement aligns with a recent forecast from CardinalStone, a leading financial advisory firm, which predicted MTN Nigeria’s equity turning positive by Q3 2025. The analytical report further projected that dividend payments would resume later in 2025, effectively bringing an end to the two-year hiatus primarily triggered by the company’s negative equity position.
This strategic move underscores MTN Nigeria’s dedication to rewarding its shareholders once its financial metrics stabilize and improve. The clarity provided by CEO Karl Toriola offers a reassuring outlook for investors, indicating a potential return to regular, substantial dividends following a period of necessary financial restructuring. While the commitment to pay out 80% of distributable reserves is a strong indicator of the company’s intent, the final step remains board approval, which is a standard procedure ensuring prudent financial management in the dynamic African telecom landscape.
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