Investors who bought MTN Nigeria shares in its December 2021 public offer and reinvested their dividends earned an annualized inflation-adjusted US dollar return of 9.9% through September 2026, according to a company analysis showing that the stock outperformed both a Nigerian sovereign Eurobond investment and naira Treasury bills.
A ₦1 million investment at the ₦169 public-offer price grew to an ending portfolio value equivalent to $4,545 with dividends reinvested, compared with $3,433 for the Eurobond alternative and $1,438 for Treasury bills, Chief Financial Officer Modupe Kadri said, during a conference-call on the firms third quarter (Q3) financials held on Monday and monitored by MoneyCentral.
Chief Financial Officer Modupe Kadri said the company prepared the analysis after investors at a roadshow and a capital-markets day in South Africa asked how an investment in Nigeria had performed in real terms.
“With dividends reinvested, the investment has grown in U.S. dollar terms after inflation, despite naira devaluation,” Kadri said.
Dividends Central to the Claim
Kadri’s comparison concerns total returns with dividends reinvested—not simply the change in MTN Nigeria’s share price. Under that approach, cash distributions are used to buy additional shares, allowing subsequent performance to apply to a larger holding.
The company’s statement also applies to an investment made at the 2021 public-offer entry point.
According to Kadri, MTN Nigeria’s investment comparison beat both Eurobonds (+3.6%) and naira Treasury bills (-13.6%), while Treasury bills lost purchasing power in both currencies.
Kadri argued that its shareholders preserved and increased purchasing power after accounting for inflation and the naira’s decline—two adjustments that can materially change the performance of a Naira investment.
MTN Nigeria stock trades at a Price to Earnings ratio of 11.66 (per Bloomberg) at around N850 Per share for a market capitalisation of N17.84 trillion or $13.26 billion.
Shares are up 66.34% Year-to-Date.
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