Telcos squeezed as domestic loans' interest rates rise - Businessday NG
MTN Nigeria Communications Plc and Airtel Africa have aggressively reduced their foreign debt exposure, repaying $1.12 billion between March 2024 and March 2025 in a move to mitigate foreign exchange (FX) risk and return to profitability. But the pivot to local borrowing has come at a cost as high domestic interest rates inflate finance costs. As of March 2025, foreign currency loans made up just 23 percent of MTN Nigeria’s debt portfolio, with domestic loans taking up the rest. On the other hand, Airtel Africa now holds 93 percent of its lo
MTN Nigeria Communications Plc and Airtel Africa have aggressively reduced their foreign debt exposure, repaying $1.12 billion between March 2024 and March 2025 in a move to mitigate foreign exchange (FX) risk and return to profitability. But the pivot to local borrowing has come at a cost as high domestic interest rates inflate finance costs. As of March 2025, foreign currency loans made up just 23 percent of MTN Nigeria’s debt portfolio, with domestic loans taking up the rest. On the other hand, Airtel Africa now holds 93 percent of its lo
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