MTN Nigeria reduced its spending on core infrastructure projects in 2024, despite a significant rise in its capital expenditure (Capex), which soared by 168.3% to N1.53 trillion. This surge was primarily driven by renegotiations of tower leases, which increased the company’s financial obligations. Excluding the lease component, MTN’s expenditure on critical infrastructure, such as fibre networks, base stations, and technology upgrades, declined slightly to N443.5 billion, down from N449.3 billion in 2023.
The company, which is Nigeria’s largest telecommunications operator with over 80 million subscribers, disclosed these details in its financial report for the year ending December 31, 2024, released on Thursday. The report showed a decrease in Capex intensity, from 18.2% in 2023 to 13.2% in 2024, signaling a more cautious approach to infrastructure investments.
However, MTN ramped up its spending in the fourth quarter of 2024 to meet the increasing demand for data traffic on its network. The report noted, “Capex rose by 168.3% (N1.53 trillion in 2024 compared to N570.9 billion in 2023) due to increased right-of-use assets following tower lease renegotiations. Excluding leases, our Capex saw a slight decline of 1.3%, dropping from N449.3 billion in 2023 to N443.5 billion in 2024, with reduced Capex intensity of 13.2%.”
The telecom operator reported a N400.44 billion loss after tax, primarily driven by foreign exchange losses caused by the devaluation of the naira, which weighed heavily on the company’s earnings.
Despite this, MTN’s revenue increased by 36% in 2024, rising to N3.36 trillion from N2.47 trillion in the previous year, driven by the ongoing demand for data and digital services.
MTN Nigeria Communications Plc was incorporated on November 8, 2000, as a private limited liability company and was granted a licence by the Nigerian Communications Commission (NCC) on February 9, 2001, to build and operate a GSM cellular network system and related services across Nigeria.
