MTN Nigeria significantly increased its capital expenditure (Capex) by 168.3% to ₦1.53 trillion in 2024, largely due to tower lease renegotiations that deepened its financial commitments. However, the telecom giant scaled back investments in core infrastructure such as fiber networks, base stations, and technology upgrades, which dropped slightly to ₦443.5 billion from ₦449.3 billion in 2023.
Key Highlights from MTN’s 2024 Financial Report:
✅ Total Capex: ₦1.53 trillion (168.3% increase from ₦570.9 billion in 2023)
✅ Capex on Core Infrastructure: ₦443.5 billion (1.3% decline from ₦449.3 billion in 2023)
✅ Capex Intensity: 13.2% of revenue (down from 18.2% in 2023)
✅ Revenue Growth: ₦3.36 trillion, up 36% from ₦2.47 trillion in 2023
✅ Loss After Tax: ₦400.44 billion, driven by naira devaluation and forex losses
Why the Shift in Spending?
📌 Tower Lease Renegotiation – A major factor behind the surge in Capex was MTN’s restructuring of tower lease agreements, increasing its right-of-use assets and long-term financial liabilities.
📌 Cautious Network Investment – Despite revenue growth, MTN reduced Capex intensity to 13.2%, reflecting a more conservative infrastructure investment strategy in response to economic uncertainties.
📌 Forex Exposure & Cost Pressures – The sharp depreciation of the naira led to higher forex losses, further impacting profitability and cash flow.
Q4 Investment Surge to Meet Rising Data Demand
MTN disclosed that it ramped up spending in Q4 to address unexpectedly strong data traffic growth on its network, despite the earlier cautious approach.
"We accelerated Capex deployment in Q4 to accommodate the stronger-than-expected data traffic growth on our networks," the company stated in its report.
MTN's Market Position & Future Outlook
With over 80 million subscribers, MTN Nigeria remains the largest telecom operator in the country. Despite financial pressures, its revenue boost from data and digital services signals strong demand.
However, the company will need to balance cost optimization with network expansion to maintain quality service delivery and competitive advantage in Nigeria’s telecom sector.
