MTN Invests $377M to Monetise Network Infrastructure

MTN Nigeria is making a daring strategic move by rapidly growing its network infrastructure, not only for its users but also to serve as the cornerstone for its rivals, with the hope that access monetisation will spur new growth outside of retail subscriptions. The business is placing a wager that by leasing access to other operators and monetising its network, it would be able to achieve substantial new growth outside of typical retail subscriptions.

MTN’s capital expenditures (excluding leases) increased 288.4% year over year to ₦565.7 billion ($377.13 million at ₦1500) in the first half of 2025 as the company expanded its fibre rollout, built out passive infrastructure, and expedited the deployment of 4G sites.

This is in line and a strategy to gain a presence in Nigeria’s quickly by expanding its telecom sector, the plan is straightforward: make significant investments in infrastructure and then lease it to rivals, especially mobile virtual network operators (MVNOs).

MTN Nigeria is establishing itself as the landlord of Nigerian telecoms by making money off of assets like its 24,300 tower sites, vast fibre network, and expanding backend systems. By leasing infrastructure to MVNOs and other mobile network operators (MNOs), the telecom behemoth is generating wholesale revenue rather than just competing in the retail market. With this strategy, MTN Nigeria may profit from the competition it fosters without having to pay for new members.

And building a path for others to ride on, Toriola stated that the team has started onboarding mobile virtual network operators (MVNOs) onto our network in accordance with the NCC’s vision of a fully connected Nigeria and deeper market inclusion.

Leaner business models are the norm for MVNOs, which focus on underserved and niche markets like youth markets, rural areas, or verticals unique to a given sector. Value-added services including enterprise bundles, microloans, and multimedia streaming are frequently included in their offerings. MVNOs can enter the market faster and for less money by leasing network capacity from well-established carriers like MTN Nigeria rather than constructing their own physical infrastructure.

And with this arrangement, MTN’s infrastructure can accommodate more users without incurring more costs for direct customer support. While MTN avoids the expensive cost of customer acquisition, it increases network utilisation, raises data traffic, and produces wholesale revenue. One such participant is MVNO Lebara, a London-based company that plans to use MTN’s network as the basis for its Q3 2025 launch in Nigeria.

The wager’s behind the figures, MTN’s performance in H1 2025 shows a lot of momentum. A 6.7% increase in overall subscribers (to 84.7 million) and an 11.8% increase in active data users (to 51 million) drove a 54.6% year-over-year spike in service revenue to ₦2.36 trillion ($1.57 billion). Due to an enormous 46.4% spike in data traffic and rising pricing, data revenue increased by 69.2%. Revenue from voice also increased by 40.3%.

The primary driver in those advances was the expansion of infrastructure. The company stretched fibre into more cities and towns, adding more than 2,300 installations, and increased 4G coverage to 82.4%. The 60.7% smartphone adoption rate has increased data consumption even more.

With margins reaching 50.6%, earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by an astounding 119.5% to ₦1.2 trillion ($800 million). Most significantly, MTN reported a ₦414.9 billion ($276.6 million) profit after taxes in H1 2025, reversing the loss from the previous year.

One of the main forces behind that performance? intelligent use of capital.

MTN invested heavily in new data centres, fibre-to-the-home rollout, network enhancements, and digital backend systems, resulting in a 23.8% capex intensity. Additionally, it renegotiated leasing agreements with American Tower Corporation (ATC) and IHS Towers, which jointly oversee more than 16,900 of its tower locations. ATC may soon increase its share to 26% with other deals.

MTN produced a positive free cash flow of ₦409.8 billion ($273.2 million), up 18%, in spite of the enormous expenditure. According to Toriola, capital expenditures will level off in H2, supporting the ongoing cash flow recovery and being in line with full-year objectives.

The reason why this is important is because of its better coverage, quicker internet, and more dependable service are all benefits of MTN’s expanding infrastructure for the typical Nigerian, particularly as the business strengthens its network resilience and power backup in the event of national grid problems.

It gives competitors particularly MVNOs and smaller ISPs access to a premium network without incurring sunk expenses. It marks a change towards open networks, shared infrastructure, and varied revenue streams for the telecom sector as a whole.

Larger tourism facilities, such as hotels and resorts, will also be able to operate more efficiently thanks to the increased connectivity, providing top-notch services and amenities that depend on a steady internet connection. This covers everything from effective back-of-house operations to in-room entertainment and online concierge services.

The Nigerian tourism industry still faces obstacles like security, but the extensive availability of dependable communication networks can help to mitigate these problems by facilitating improved security coordination and giving visitors a continuous connection to support systems.