MTN Nigeria Communications Plc has accelerated its capital investments at an unprecedented pace, with capital expenditure (excluding leases) soaring by 288.4% year-on-year to ₦565.7 billion in the first half of 2025. This aggressive investment, one of the largest in MTN’s history, signals the telecom giant’s intent to fast-track network expansion and service quality in response to surging data demand and evolving customer needs.
The group’s CEO, Karl Toriola, highlighted the “acceleration of investment in our network to enhance capacity, coverage and quality of experience,” noting that much of the front-loaded CAPEX was dedicated to expanding core infrastructure, rolling out new 4G sites and advancing fibre-to-the-home projects. One flagship initiative is the launch of the first phase of the US$240 million Dabengwa Tier 3 Data Centre, set to be the largest of its kind in West Africa. These projects are designed to accommodate the 41.2% surge in data traffic and the growing reliance on digital connectivity across Nigeria.
“The strong growth in service revenue has reinforced our commitment to significantly scale up capital deployment, ensuring our network delivers world-class experience to meet the aspirations of millions of Nigerians,” said Toriola.
Despite the sharp increase in CAPEX outflows, MTN Nigeria maintained robust financial health, closing the half-year with a ₦409.8 billion free cash flow, up 18.0%. Management anticipates the acceleration in CAPEX to “moderate” in the second half of the year, aiming to align with full-year objectives and further strengthen free cash flow generation.
Notably, the CAPEX intensity—the ratio of capital expenditures to revenue—reached 23.8% in H1 2025, reflecting the prioritization of long-term capacity over short-term margins. This move comes even as EBITDA jumped by 119.5%, and the company delivered a profit after tax of ₦414.9 billion, bouncing back from a significant loss in the prior year.
MTN’s accelerated investments are targeting key growth areas:
Data and Broadband Expansion: 240 new 4G sites deployed, with home broadband users swelling by 501,000 to 3.7 million.
Enterprise and Digital Services: The new Tier III data centre supports MTN Cloud and digital platforms for startups and businesses.
Customer Experience: Capacity enhancements and fibre rollout aim to reduce network congestion and improve average usage per subscriber.
The company attributes the CAPEX surge to both “higher right-of-use assets” from extended tower leases and to direct investments in infrastructure and technology upgrades.
With momentum strong and macroeconomic conditions improving, MTN Nigeria reaffirmed its FY 2025 guidance, targeting CAPEX intensity in the upper teens for the full year and a continued focus on digital infrastructure. The company says this aggressive approach is foundational for “unlocking long-term value” and maintaining leadership in Africa’s largest telecoms market.
“Our investments today are laying the groundwork for Nigeria’s digital future, empowering individuals, businesses, and the broader economy,” Toriola added.
While the pace of capital deployment will ease in coming months, the first-half push positions MTN Nigeria to capture rising demand for connectivity and innovation—cementing its pivotal role in the nation’s digital transformation journey.
