MTN Nigeria has scaled back its spending on critical infrastructure projects in 2024, despite reporting a 168.3% increase in capital expenditure (Capex) to N1.53 trillion—a spike largely attributed to tower lease renegotiations that deepened financial obligations.
The telecom giant, which serves over 80 million subscribers, disclosed these figures in its 2024 financial report, released on Thursday.
Drop in Core Infrastructure Investment
While MTN’s total Capex soared, spending on essential infrastructure like fibre networks, base stations, and technology upgrades declined slightly to N443.5 billion from N449.3 billion in 2023.
Additionally, Capex intensity—a metric that tracks the proportion of revenue allocated to network expansion—dropped from 18.2% in 2023 to 13.2% in 2024, signaling a more cautious investment strategy.
However, the company ramped up spending in Q4 2024 to support rising data traffic as demand for digital services surged.
Impact of Forex Losses on MTN’s Earnings
MTN Nigeria posted a loss after tax of N400.44 billion, largely due to foreign exchange losses stemming from the naira’s devaluation. Despite this, the company’s revenue jumped 36% to N3.36 trillion, up from N2.47 trillion in 2023, driven by strong demand for data and digital services.
MTN’s Position in the Nigerian Telecom Industry
MTN Nigeria, incorporated in 2000, secured its telecom license in 2001 and has since grown into the country’s largest mobile network operator. While its financial strategy in 2024 reflected a shift toward managing forex risks and lease obligations, the company remains committed to network expansion and digital service growth.
