MTN Nigeria's financial hole deepens to nearly R6bn

MTN Nigeria, Africa's largest mobile operator's biggest market, says pressure from high energy costs and currency volatility continued in its first quarter to end March, and its negative shareholder equity now stands at almost R6 billion.

The further depreciation of the Nigerian currency resulted in a foreign exchange loss of 656.4 billion naira (about R9 billion) to end March, with the unit posting a loss of 392.7 billion, from profit of about 108 billion previously.

Service revenue growth of 32% was slightly above average inflation of 31.6% for the period, the operator said, but conditions were still challenging. It also felt pressure from higher energy costs as well as an industry-wide directive in December that ordered operators to bar sim cards not linked to Nigeria's National Identity Number.