MTN Nigeria Plc is set to return to dividend distribution in 2025, as its profit is projected to climb to N1.1 trillion, according to analysts at Chapel Hill Denham Limited. The earnings boost is being driven largely by a 50 percent tariff-related windfall.
With expectations of reinstating its 80 percent payout policy, investors could see stronger dividend per share (DPS) returns, translating to a dividend yield of about 11.2 percent.
“MTNN should be able to reverse its negative shareholders’ fund position by Q3 2025,” Chapel Hill Denham noted.
The telecom giant reported a profit after tax (PAT) of N414.9 billion for the first half of 2025, a sharp turnaround from the N519.1 billion loss posted in the same period of 2024. Stabilisation of the naira also eased foreign exchange losses, which dropped to N5.23 billion in June 2025 from N887.68 billion a year earlier.
Meanwhile, retained earnings stood at N42.45 billion as of June 2025, down from N458 billion in June 2024. Despite this, investors have rewarded the company’s balance sheet recovery, with MTN Nigeria’s share price soaring 122 percent year-to-date.
At a price-to-earnings ratio of 18.8x, the stock remains appealing. Chapel Hill Denham reiterated a BUY rating, lifting its target price to N600.83 — signaling a potential 30.62 percent upside, inclusive of a 2.3 percent dividend yield.
Currently, MTNN trades at a forward EV/EBITDA of 4.0x for FY-26E, which is more attractive compared to regional peers Safaricom (5.5x) and Vodacom (5.1x).