MTN Nigeria’s Credit Impairment Charges Jump to N23.87 Billion

MTN Nigeria Communications Plc recorded a 768% enhance in credit score impairment fees to N23.87 billion within the 9 months ended September 30, 2026, up from N2.75 billion within the corresponding interval of 2025.

The N21.12 billion enhance was largely pushed by larger provisions for potential losses on buyer receivables and quantities owed by associated events, in keeping with the corporate’s unaudited monetary statements.

A overview of the monetary disclosures confirmed that impairment fees on commerce receivables elevated to N15 billion from N2.38 billion, accounting for the biggest portion of the corporate’s credit score loss bills.

MTN attributed the upper provision primarily to a reassessment of receivables related to XtraTime, its service that permits eligible clients to acquire airtime or knowledge prematurely and repay subsequently.

The firm additionally disclosed that N3.2 billion in receivable balances had been faraway from its accounts after historic reconciliation variations related to legacy programs had been assessed as unrecoverable.

The disclosure highlights the monetary dangers related to extending credit score to telecommunications clients, notably the place reimbursement will depend on subsequent account exercise.

Beyond buyer receivables, MTN recognised N8.74 billion in anticipated credit score losses on quantities owed by associated events.

There was no corresponding cost for this class within the first 9 months of 2025.

According to the monetary statements, the related-party impairment adopted administration’s evaluation of recoverability underneath International Financial Reporting Standard 9, considering the related subsidiary’s credit score danger, monetary efficiency and projected money flows.

The improvement signifies that MTN can be reassessing the recoverability of balances inside its wider company construction, reasonably than limiting its credit-risk provisions to exterior clients.

As of September 30, 2026, gross commerce receivables stood at N113.34 billion, in contrast with N114.66 billion on the finish of December 2025.

However, the allowance for anticipated credit score losses on commerce receivables elevated to N39.10 billion from N27.30 billion over the identical interval.

Consequently, the allowance represented roughly 34.5% of gross commerce receivables on the finish of September, in contrast with 23.8% in December 2025.

For related-party receivables, the group’s gross steadiness elevated to N53.36 billion from N39.36 billion, whereas the related anticipated credit score loss allowance rose to N8.74 billion from zero.

These actions present that MTN has elevated its provisions towards potential non-recovery of quantities due from clients and associated entities.

Credit impairment fees are accounting bills recognised to replicate anticipated losses on monetary belongings. They don’t essentially signify money losses incurred in the course of the reporting interval.

In the third quarter alone, MTN recorded N7.28 billion in web impairment fees, in contrast with a web reversal of N363 million within the corresponding quarter of 2025.

The third-quarter cost was largely related to related-party receivables, the place the corporate recognised N8.71 billion in anticipated credit score losses, partly offset by reversals in different classes.

Despite the rise in impairment bills, MTN maintained robust general monetary efficiency.

The firm reported income of roughly N4.61 trillion for the nine-month interval, whereas working revenue rose to N1.99 trillion from N1.44 trillion within the corresponding interval of 2025.

Profit after tax additionally elevated to N1.17 trillion, indicating the corporate’s capacity to maintain earnings development regardless of larger provisions for potential credit score losses.

Nevertheless, the rise in impairment fees introduces an extra consideration for buyers assessing the standard of MTN’s receivables and the effectiveness of its credit-risk administration.

The firm’s future impairment bills will rely partly on buyer reimbursement behaviour, restoration of excellent balances and the monetary efficiency of associated entities.

For MTN, sustaining stronger assortment processes and managing credit score publicity will stay vital as its telecommunications and digital companies companies proceed to broaden.