THURSDAY May 1, 2025 |
By thenewsdesk.ng
MTN Nigeria, the country’s largest telecommunications operator, has allocated N202.4bn to bolster its network infrastructure in the first quarter of 2025, marking a 159 per cent increase from the previous year.
The investment surge follows regulatory approval for 50 per cent tariff adjustments, enabling the company to address soaring data demand and enhance service quality.
According to ThePUNCH reports, the company’s capital expenditure intensity climbed to 19.1 per cent, up 8.7 percentage points, aligning with its strategic targets. Excluding tower lease renegotiations, capital spending rose by an identical 159 per cent, reflecting a robust response to market dynamics.
“This accelerated deployment supports unprecedented data traffic growth and prioritises user experience,” the telco with 84 million subscribers stated in its unaudited financials on Wednesday.
“We remain focused on executing our Ambition 2025 strategy, accelerating network investment, deepening digital and financial inclusion, and restoring shareholder value in a challenging but improving macro environment. We will continue to execute with discipline, agility, and a focus on sustainable growth.”
In a strategic move, MTN Group, its parent company, inked an infrastructure-sharing deal in March with Airtel Africa to optimise passive infrastructure in Nigeria, a step expected to expand coverage and curb costs.
On Tuesday, the Nigerian Communications Commission said telecom operators have ordered over $1bn in network infrastructure from original equipment manufacturers in China to overhaul and upgrade the quality of service.
While the telecom equipment has yet to arrive, be cleared, or be deployed in-country, the move signals a return to capital investment in the sector after a prolonged period of financial strain.
As the sector, valued at over $75bn, prepares for its next phase of growth, the regulator emphasised that robust infrastructure will be crucial to meeting rising data demand and supporting emerging digital services across the economy.
Meanwhile, the company posted a profit after tax of N133.7bn, rebounding from a loss of N392.7bn in the same period last year. The turnaround was driven by a surge in operating profit and a sharp decline in foreign exchange losses.
Lease-related costs, which accounted for over 60 per cent of total operating expenses, were significantly impacted. The naira fell 72.2 per cent year-on-year against the U.S. dollar, from N897.8/$ in Q1 2024 to N1,546.1/$ in Q1 2025.
It maintained strong financial discipline, generating free cash flow of N209.9bn. Its cash reserves stood at N303.7bn by March’s end, underpinned by prudent capital allocation.
The operator also reduced its foreign currency exposure, with just $1.4 million in outstanding letters of credit and foreign-denominated debt falling to 23 per cent of total borrowings, down from 28 per cent in December 2024.
