MTN Invests N1.6trn Into Network As Data Revenue Overtakes Voice

MTN Nigeria Communications Plc has invested more than N1.6 trillion in network infrastructure since the beginning of 2025 as mobile data revenue overtook voice earnings for the first time, underscoring the growing demand for digital services across the country.

The telecom operator said the massive investment was aimed at expanding network capacity, improving service quality and preparing its infrastructure for rising internet usage driven by increasing smartphone adoption and greater reliance on digital platforms by consumers and businesses.

Speaking in Lagos, the company’s chief executive officer, Karl Toriola, said the company invested N620.5 billion in the first half of 2026 alone, bringing total capital expenditure since the start of 2025 to over N1.6 trillion.

According to him, the investment expanded MTN’s network to more than 62,000 sites and 16 switching centres, increasing population coverage to 93.7 per cent on 2G, 87.6 per cent on 3G, 84.6 per cent on 4G and 12.8 per cent on 5G.

Toriola explained that the operator’s strategy is to build network capacity ahead of demand to ensure quality service delivery.

“Every additional gigabyte consumed requires capacity that must be built and paid for before the revenue arrives. That is why investment leads demand, not the other way round,” he said.

The investment coincided with a sharp rise in data usage, with MTN reporting that data revenue surged by 38.4 per cent to N1.70 trillion in the first half of 2026, surpassing voice revenue of N993 billion to become the company’s largest source of service income.

The company also recorded a 9.3 per cent increase in active data subscribers to 55.7 million, while smartphone penetration rose to 66.4 per cent. Average monthly data consumption per subscriber climbed 15.2 per cent year-on-year to 14.8 gigabytes, reflecting increasing dependence on digital connectivity.

To support the growing traffic, the company said investments were channelled into network densification, additional base stations, fibre infrastructure, deployment of 5G fixed wireless broadband and the construction of a new data centre.

MTN’s Chief Financial Officer, Modupe Kadri, said the company maintained aggressive investment despite inflationary pressures, rising energy costs and exchange rate volatility.

“Global cost pressures, energy costs and inflation continue to test the industry. But we have held our cost discipline tight, contained operating expenses at 11.3 per cent growth against 25.9 per cent revenue growth, and renegotiated tower leases to reduce the foreign exchange component and cap escalation,” Kadri said.

He disclosed that the company had also eliminated its foreign currency loan exposure after repaying all outstanding obligations, reducing what was once a peak foreign debt of $417 million in 2023 and significantly lowering its vulnerability to exchange rate fluctuations.

Kadri, however, stressed that sustaining long-term investment in telecommunications infrastructure would depend on a stable regulatory environment.

“Long-cycle capital needs regulatory predictability, a workable pricing framework and protection of critical national assets. Where that environment has held, investment has followed,” he said.

Beyond infrastructure spending, Kadri said MTN injected about N1.5 trillion into the local economy through payments to Nigerian suppliers and service providers during the first half of 2026. The company also remitted N622.6 billion in taxes, spectrum fees, import duties, Value Added Tax (VAT) and other statutory obligations.

According to the Nigerian Communications Commission (NCC), the telecommunications sector currently contributes about 9.2 per cent to Nigeria’s Gross Domestic Product (GDP), highlighting its growing importance in driving economic growth, digital inclusion and the country’s digital economy agenda.