MTN Nigeria joined the expanding list of financially distressed companies in the country after its entire shareholders’ fund was obliterated by a sweeping after-tax loss precipitated by a dollar scarcity in Africa’s biggest economy.
The wireless carrier, which executes the majority of its transactions with trade partners in foreign currencies, incurred N740 billion in net foreign exchange loss last year following sharp jumps in the rates of exchanging the naira for the dollar.
That turned its shareholders’ fund into a negative figure of N40.8 billion, with liabilities totalling N3.230 trillion and assets summing up to N3.188 trillion.
