Telecom giant expands network investment
MTN Nigeria sharply increased infrastructure investment in the first quarter of 2026 as demand for data and digital financial services continued to rise.
The company spent N390.3 billion on capital expenditure excluding lease assets during the period.
This represents a 92.8 per cent increase compared to the N202.4 billion recorded in the first quarter of 2025.
Investment targets network expansion
MTN said the increased spending focused on expanding network capacity and improving service quality across the country.
According to the company’s unaudited financial results, total capital expenditure rose by 10.6 per cent to N482.7 billion.
In addition, capex intensity excluding lease assets climbed to 26 per cent from 19.1 per cent recorded a year earlier.
MTN cites stronger foreign exchange conditions
Chief Executive Officer Karl Toriola said the improved foreign exchange environment helped support the company’s aggressive investment strategy.
“To support this momentum, we invested N390.3 billion in capex excluding leases, prioritising network capacity and quality of experience,” he said.
He added that the stronger foreign exchange position allowed the company to accelerate infrastructure upgrades and prepare for future revenue growth.
Profit rises strongly in first quarter
The investment push came alongside strong financial performance during the quarter.
Profit after tax surged by 165.9 per cent to N355.5 billion from N133.7 billion recorded during the same period last year.
Meanwhile, group revenue increased by 41.6 per cent to N1.5 trillion.
The company attributed the growth mainly to strong demand for data and fintech services.
Data and fintech drive revenue growth
Data revenue rose sharply by 56.2 per cent to N827.2 billion.
At the same time, fintech revenue jumped by 77.9 per cent to N64.2 billion.
Voice revenue also increased by 22.5 per cent to N499.1 billion.
The performance reflects growing digital adoption across Nigeria’s telecommunications sector.
EBITDA and cash flow improve
MTN Nigeria also recorded stronger earnings before interest, tax, depreciation, and amortisation.
EBITDA increased by 68.1 per cent to N828.3 billion during the quarter.
Consequently, EBITDA margin improved to 55.3 per cent from 46.6 per cent recorded a year earlier.
Free cash flow also rose by 55.6 per cent to N326.5 billion despite the higher capital expenditure.
Subscriber base continues to grow
The company expanded its customer base during the reporting period.
Mobile subscribers increased by 6.5 per cent to 89.5 million users.
Similarly, data subscribers rose by 9.5 per cent to 55 million users.
MoMo wallet subscriptions also recorded strong growth, increasing by 54.6 per cent to 3.3 million users.
Rising smartphone usage boosts demand
MTN said rising smartphone penetration and digital service adoption continue to increase demand for broadband services.
The company noted that infrastructure expansion remains critical to supporting higher data traffic and improved customer experience.
Operating costs rise moderately
Despite the strong earnings growth, MTN reported higher operating expenses during the quarter.
Operating costs increased by 16.1 per cent to N474.4 billion.
Cost of sales also rose by 25 per cent to N195.7 billion.
However, lower finance costs supported overall profitability.
Profit before tax climbs above N546bn
MTN Nigeria’s profit before tax surged by 169.6 per cent to N546.4 billion.
The company attributed part of the increase to lower net finance costs, which declined by 38.7 per cent year-on-year to N85.9 billion.
Analysts say the company’s continued investment in infrastructure positions it strongly for future growth in Nigeria’s digital economy.
