MTN Nigeria Cuts Core Infrastructure Spending Despite 168% Surge in Capital Expenditure

MTN Nigeria Cuts Core Infrastructure Spending Despite 168% Surge in Capital Expenditure

MTN Nigeria reduced its spending on key infrastructure projects in 2024, even as its overall capital expenditure (Capex) surged by 168.3% to ₦1.53 trillion. The sharp rise was mainly due to renegotiated tower leases, which significantly increased the company’s financial commitments.

Excluding lease expenses, MTN’s spending on critical infrastructure—such as fibre networks, base stations, and technology upgrades—declined slightly from ₦449.3 billion in 2023 to ₦443.5 billion in 2024. The company’s Capex intensity, which measures the proportion of revenue allocated to network expansion, also fell from 18.2% in 2023 to 13.2% in 2024, signaling a more cautious investment approach.

Despite this, MTN ramped up infrastructure spending in the fourth quarter of 2024 to accommodate a surge in data traffic.

The company also reported a ₦400.44 billion loss after tax, largely due to foreign exchange losses caused by the naira’s devaluation. However, revenue grew by 36%, reaching ₦3.36 trillion, up from ₦2.47 trillion in 2023, driven by increasing demand for data and digital services.

MTN Nigeria, the country’s largest telecom operator with over 80 million subscribers, has been active since 2001 after receiving its operating license from the Nigerian Communications Commission (NCC).