MTN Nigeria Spends N202 Billion on Network Upgrade after Raking in Billions in Profit
- MTN Nigeria says it has poured about N202.4 billion, about 159% of its yearly earnings, into infrastructure upgrades
- The company said the move was to boost service delivery and capacity following the tariff hike approved by the NCC
- The telco said its subscribers also grew by 8.2% to 84.1 million, an addition of 3.2 million subscribers during the period
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
MTN Nigeria said it has invested about N202.4 billion, representing 159% yearly, in infrastructure upgrades and network expansion to boost service delivery and capacity.
The company disclosed this in its unaudited financials for Q1 2025, saying its subscribers grew by 8.2% to 84.1 million, an addition of 3.2 million subscribers during the review period.
Source: UGC
MTN Nigeria's subscribers grow
The telco disclosed that its active data users increased by 13.0% to 50.3 million, an additional 2.6 million users.
MTN Nigeria CEO, Karl Toriola, said the company received approval to adjust its prices, leading to the ongoing investment in the industry and maintaining quality service.
The MTN Nigeria boss said the development empowered the telco to accelerate network investments with N202.4 billion, up by 159%, focusing on boosting capacity and improving user experience.
He said that despite uncertainties, the company returned to profitability due to the relative stability of the naira during the period.
According to him, the exchange rate remained relatively stable at N1,537 per dollar at the end of March this year, while inflation stood at 24.2%.
Toriola said:
“We also continued to explore efficiency-enhancing opportunities through infrastructure-sharing partnerships. A key milestone was the agreement between MTN Group and Airtel Africa to collaborate on passive infrastructure in Nigeria, enabling accelerated coverage and driving network cost efficiencies.”
MTN Nigeria announces data subscribers growth
He disclosed that the telco’s commercial performance remained robust, supported by sustained investment in network capacity, demand, and proactive customer value management initiatives.
He added that in the first quarter, the leading telco grew its subscriber base by 3.2 million, bringing its total base to 84.1 million.
Source: Getty Images
Also, its active data users increased by 2.6 million to 50.3 million, contributing to a 46.4% yearly growth in data traffic.
He attributed the growth to the company’s disciplined approach to gross connections and management, and continuous innovation in customer value propositions.
MTN Nigeria’s MoMo users decline
Toriola said the fintech strategy readjustment was advanced during the review period, with a deliberate focus on boosting the quality of the ecosystem.
He said that despite experiencing a 25.7% increase in active wallet users to 2.1 million relative to December last year, the firm onboarded more high-value customers, improved float levels, and enhanced the overall health and sustainability of the ecosystem.
Experts have said that the investment in infrastructure by the company will allow it to maintain a dominant market position in the months ahead.
The development came as the company also disclosed that investors finally heaved a sigh of relief as MTN Nigeria returned to profitability after two consecutive years of reporting losses.
The telecommunication giant released the financial report for the first quarter of 2025, showing that its books have returned to the black.
For the quarter, MTN Nigeria posted N133 billion in profits, an impressive development compared to the N14 billion loss posted in Q1 2024.
Naira devaluation erodes MTN’s profit
Legit.ng earlier reported that MTN Nigeria Communications Plc released its financial results for the nine months ending September 30, 2024.
Profit After Tax (PAT), which was adjusted for the net currency loss, was N118.5 billion, down 59.2%, while the telecom business reported a loss after tax of N514.9 billion.
Meanwhile, the devaluation of the naira was primarily to blame for the loss, which was N41 billion lower than the N519.1 billion in its half-year results.
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Source: Legit.ng
