MTN Nigeria reduced spending on vital infrastructure projects in 2024, as it raised capital expenditure by 168.3 percent to N1.53 trillion, led mainly by tower lease renegotiations that increased its cost burden.
Stripping away the leasing element, MTN’s spending on vital infrastructure, including fibre networks, base stations, and technology upgrades, fell to N443.5 billion from N449.3 billion in 2023.
The operator, Nigeria’s largest telco with over 80 million subscribers, released these statistics in its year-ended December 31, 2024, annual report filed on Thursday.
Capex intensity, a gauge of how much of a company’s revenue is spent on network expansion, fell to 13.2% in 2024 from 18.2% in 2023, showing a more cautious attitude towards investment in infrastructure.
But the telecom operator further said that it increased investment in the fourth quarter of the year to deal with increasing data traffic demand on its network.
According to the study, “Capex increased by 168.3 percent (N1.53 trillion in 2024 and N570.9 billion in 2023) due to increased right-of-use assets due to tower lease renegotiation.” Ignoring leases, our capex decreased by 1.3% (N443.5bn from N449.3bn in 2023), resulting in a 13.2% decline in capital intensity.
“In light of the substantial progress in reducing the forex exposure from our LC obligations, we accelerated capex deployment in Q4 to accommodate the stronger-than-expected data traffic growth on our networks.”
The operator reported a N400.44bn loss after tax, as the devaluation of the naira drove up foreign exchange losses and weighed on the company’s earnings.
The telco’s revenue rose by 36 per cent to N3.36tn in 2024, up from N2.47tn in the previous year, driven by continued demand for data and digital services.
MTN Nigeria Communications Plc was incorporated on November 8, 2000, as a private limited liability company.
It was granted a licence by the Nigerian Communications Commission on February 9, 2001, to undertake the business of building and operating GSM cellular network systems and other related services nationwide in Nigeria.
