MTN Nigeria is ramping up infrastructure investment to turn its network into a platform for other operators, betting that monetising access will unlock new growth beyond retail subscriptions.
In the first half of 2025, MTN’s capital expenditure (excluding leases) jumped 288.4% year-on-year to ₦565.7 billion ($377.13 million at ₦1500), as the company accelerated deployment of 4G sites, expanded fibre rollout, and built out passive infrastructure.
The strategy is clear: invest heavily in infrastructure, then lease it out to competitors, particularly mobile virtual network operators (MVNOs), seeking a foothold in Nigeria’s rapidly growing telecom market.
By monetising assets like its 24,300 tower sites, extensive fibre network, and growing backend systems, MTN Nigeria is positioning itself as the landlord of Nigerian telecoms. Instead of competing solely in retail, the telecom giant is tapping into wholesale revenue by leasing infrastructure to MVNOs and other mobile network operators (MNOs). This approach allows MTN Nigeria to earn from the competition it enables, without the cost of acquiring subscribers.
Building for others to ride
“In line with the NCC’s vision of a fully connected Nigeria and deeper market inclusion, we have begun onboarding mobile virtual network operators (MVNOs) onto our network,” Toriola said.
MVNOs typically operate with leaner business models, zeroing in on niche and underserved segments, such as youth markets, rural communities, or industry-specific verticals. Their offerings often include value-added services like content streaming, microloans, or enterprise bundles. Rather than building physical infrastructure, MVNOs lease network capacity from established operators like MTN Nigeria, allowing them to enter the market more quickly and at lower cost.
This arrangement expands the user base on MTN’s infrastructure without adding the overhead of direct customer service. It boosts data traffic, increases network utilisation, and generates wholesale revenue, while MTN sidesteps the high cost of subscriber acquisition. One such player is London-based MVNO Lebara, which is set to launch in Nigeria in Q3 2025 using MTN’s network as its foundation.
The numbers behind the bet
MTN’s H1 2025 performance reflects strong momentum. Service revenue surged 54.6% year-on-year to ₦2.36 trillion ($1.57 billion), driven by a 6.7% increase in total subscribers (now 84.7 million) and an 11.8% jump in active data users (51 million). Data revenue soared 69.2%, thanks to rising prices and an explosive 46.4% growth in data traffic. Voice revenue also gained 40.3%.
Infrastructure growth was central to those gains. The company added over 2,300 sites, expanded 4G coverage to 82.4%, and extended fibre into more cities and towns. Smartphone penetration has climbed to 60.7%, further boosting data demand.
Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) rose an impressive 119.5% to ₦1.2 trillion ($800 million), with margins up to 50.6%. Most importantly, MTN reversed its previous year’s loss, posting a ₦414.9 billion ($276.6 million) profit after tax in H1 2025.
A key driver of that performance? Smart capital deployment.
Capex intensity hit 23.8%, as MTN poured funds into network upgrades, fibre-to-the-home rollout, new data centres, and digital backend systems. It also renegotiated lease deals with IHS Towers and American Tower Corporation (ATC), which together manage over 16,900 of its tower sites. With additional agreements, ATC’s share may soon rise to 26%.
Despite the massive spend, MTN generated a positive free cash flow of ₦409.8 billion ($273.2 million), up 18%. Toriola says capex will moderate in H2, aligning with full-year goals while supporting continued cash flow recovery.
Why this matters
For the average Nigerian, MTN’s infrastructure expansion means better coverage, faster internet, and more reliable service, especially as the company improves power backup and network resilience in the face of national grid issues.
For competitors, especially MVNOs and smaller ISPs, it means access to a premium network without the sunk costs. For the telecom industry as a whole, it signals a shift toward shared infrastructure, open networks, and diversified revenue models.
Mark your calendars! Moonshot by is back in Lagos on October 15–16! Join Africa’s top founders, creatives & tech leaders for 2 days of keynotes, mixers & future-forward ideas. Early bird tickets now 20% off—don’t snooze! moonshot..com
