With conversations about a possible tariff hike, MTN Nigeria's shares have appreciated by 21% just two weeks into 2025.

This development makes the telecommunication giant's performance one of the most outstanding on the Nigerian Exchange Group (NGX) in 2025.

According to stock market analysts, this incredible performance after an unfavourable 2024 is driven by positive sentiments and fueled by the anticipated hike in tariff prices.

The CEO of MTN Nigeria, Karl Toriola, cautioned that failure to adjust tariffs could jeopardize the telecom industry’s survival.

Remember that telecommunications operators have been fighting for an increment in call and data tariffs since 2024, and speculations arose in December 2024 that the increase would be approved in the first quarter of 2025.

After months of negotiation by stakeholders and speculations by the public, Minister of Communication, Innovation, and Digital Economy, Bosun Tijani confirmed that there will be a tariff hike, although not up to 100% as the Telcos proposed.

On the tariff hike confirmation from the federal government, MTN stock prices appreciated even further.

Just last week, the stock recorded two consecutive trading days of 10% gains, and as of Monday, January 13, 2025, the MTN Stock price was N242.

Compared to the closing price of N200 on December 31, 2024, the MTN stock price has climbed 21%.

Meristem Stockbrokers predicts a target price of N254.22k for MTN Nigeria stocks, and investors will be watching to see what happens.

Recall that MTN stock had performed below expectations in 2024. The stock appreciated in January to a peak price of N295 before starting a downtrend that ended in a losing year for its investors.

There are questions as to whether January 2025 might simply be mirroring the bullish trend seen in January 2024 and whether a price slump lies ahead too.

According to a BusinessDay report, market indications show that the approval of tariff hikes by the Nigerian Communications Commission (NCC) played a role in this surge. Once the approval was confirmed, the bulls took over MTN stock on the exchange.

The appreciation aligns with CardinalStone's December 2024 report, in which they predicted a comeback in the MTN share price.

This prediction was hinged on the telecom giant's policy moves and strategies, especially the adjustments in the renegotiated tower lease contracts.

The adjustments moved the USD components in its lease from 55-60% to 25-30%, to hedge against foreign exchange volatility and improve its finances.