MTN Reduces Core Infrastructure Spending as Capex Surges to N1.53tn
MTN Nigeria scaled back investments in core infrastructure projects in 2024, despite a 168.3% surge in capital expenditure to N1.53 trillion, largely due to tower lease renegotiations that increased its financial obligations.
Excluding lease costs, spending on essential infrastructure—such as fibre networks, base stations, and technology upgrades—declined slightly to N443.5 billion from N449.3 billion in 2023.
The company, which serves over 80 million subscribers, disclosed these figures in its 2024 financial report released on Thursday.
Capex intensity, which measures the portion of revenue allocated to network expansion, dropped from 18.2% in 2023 to 13.2% in 2024, indicating a more cautious investment strategy.
However, MTN ramped up spending in the fourth quarter to accommodate rising data traffic demand.
The report stated, “Capex rose by 168.3% (N1.53tn in 2024 from N570.9bn in 2023) due to increased right-of-use assets following tower lease renegotiations. Excluding lease expenses, capex declined slightly by 1.3% (N443.5bn from N449.3bn in 2023), with a reduced capex intensity of 13.2%.”
The telecom giant also reported a N400.44 billion loss after tax, attributing it to foreign exchange losses caused by naira devaluation, which significantly impacted earnings.
Despite this, revenue grew by 36% to N3.36 trillion in 2024, up from N2.47 trillion in 2023, driven by continued demand for data and digital services.
MTN Nigeria Communications Plc was established on November 8, 2000, and licensed by the Nigerian Communications Commission on February 9, 2001, to build and operate GSM cellular networks nationwide.
