MTN Nigeria Splashes $377M to Power its Competitors for Profit in Major Strategy Shift

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In a bold, strategic shift, MTN Nigeria is aggressively expanding its network infrastructure not just for its subscribers, but to become the foundational platform for its competitors. The company is betting that monetising its network by leasing access to other operators will unlock significant new growth beyond traditional retail subscriptions.

Tech Cabal reports that, to power this ambition, the telecommunications giant invested a staggering $377.13 million (₦565.7 billion) in capital expenditure during the first half of 2025. This represents a massive 288.4% year-on-year increase in funds, which were channelled into accelerating the deployment of 4G sites, expanding its fibre optic network, and building out passive infrastructure.

This massive investment underpins a clear strategy: build a world-class network and then rent it out. By leasing assets like its 24,300 tower sites and extensive fibre backbone, MTN Nigeria is positioning itself as the landlord of the nation’s telecoms sector. Instead of solely competing for individual customers, the giant is tapping into a lucrative wholesale revenue stream.

This “platform” approach allows MTN to profit from the very competition it enables. By leasing infrastructure to Mobile Virtual Network Operators (MVNOs) and other Mobile Network Operators (MNOs), MTN earns revenue without incurring the high costs associated with acquiring and serving those end-users directly.

“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,” confirmed MTN Nigeria CEO Karl Toriola.

According to Tech Cabal, MVNOs are the primary beneficiaries of this strategy. These operators typically run on leaner business models, targeting niche segments like youth markets, rural communities, or specific enterprise verticals. By leasing network capacity from MTN, they can launch services quickly and affordably, bypassing the prohibitive cost of building their physical infrastructure.

For MTN, this arrangement drives more traffic onto its network, increases asset utilisation, and generates steady wholesale income—all while sidestepping the expenses of direct customer support. One of the first to leverage this model is London-based MVNO Lebara, which is scheduled to launch in Nigeria in the third quarter of 2025, using MTN’s network as its core.

The early results of this strategy are already reflected in MTN’s impressive H1 2025 performance. Service revenue soared by 54.6% year-on-year to reach $1.57 billion (₦2.36 trillion), fuelled by a 6.7% growth in total subscribers to 84.7 million and an 11.8% jump in active data users to 51 million.

Data revenue was the standout performer, surging by 69.2% on the back of optimised pricing and a 46.4% explosion in data traffic. Voice revenue also posted a substantial 40.3% gain. These gains were directly supported by the infrastructure push, which saw the company add over 2,300 new sites, expand its 4G coverage to 82.4% of the population, and drive smartphone penetration to 60.7%.

Financially, the company’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) climbed by a remarkable 119.5% to $800 million (₦1.2 trillion), with the EBITDA margin strengthening to 50.6%. Crucially, MTN successfully reversed a loss from the previous year, posting a healthy profit after tax of $276.6 million (₦414.9 billion).

Despite the heavy spending, which saw capex intensity reach 23.8%, MTN generated a positive free cash flow of $273.2 million (₦409.8 billion), an 18% increase. CEO Karl Toriola noted that capital expenditure is expected to moderate in the second half of the year, supporting continued cash flow recovery.

For the average Nigerian consumer, MTN’s infrastructure drive promises better network coverage, faster internet speeds, and more reliable services. This is particularly critical as the company enhances power backup and network resilience to counteract challenges from the national grid.

For the broader industry, it signals a significant evolution. It provides smaller players, especially MVNOs and Internet Service Providers, with access to a premium network without the extreme upfront costs. Ultimately, MTN’s move is catalysing a shift towards shared infrastructure, open networks, and more diversified, competitive business models across Nigeria’s telecommunications landscape.

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MTN Nigeria’s recent announcement of a $377 million investment to monetise its network and lease infrastructure to competitors is poised to provide a significant boost to the nation’s burgeoning tourism sector. This strategic move, focused on expanding 4G coverage, rolling out extensive fibre optic networks, and building passive infrastructure, will create a more robust and reliable digital foundation, directly addressing key challenges that have historically hampered tourism development in Nigeria.

The investment is expected to translate into improved network availability and quality, particularly in rural and underserved areas where many of Nigeria’s unique tourist attractions are located. For years, poor connectivity has been a major impediment for tourists seeking to explore the country’s diverse landscapes, from the cascading waterfalls of Erin-Ijesha to the historic city of Badagry. The enhanced digital infrastructure will empower visitors with seamless access to online navigation, real-time information, and emergency services, thereby improving their safety and overall experience.

A key component of MTN’s strategy is the leasing of its infrastructure to other operators, including Mobile Virtual Network Operators (MVNOs). This will foster a more competitive telecommunications market, leading to potentially lower data costs and a wider array of digital services available to both tourists and tourism-related businesses. Small and medium-sized enterprises (SMEs) in the tourism value chain, such as local tour guides, small hotels, and transport providers, will be better positioned to leverage digital tools for marketing, online bookings, and customer engagement, thus increasing their visibility and market reach.

The ripple effects of this investment are anticipated to be far-reaching for the tourism industry. The availability of high-speed internet will facilitate the development and adoption of innovative tourism products and services. This includes the potential for virtual tours of historical sites, augmented reality experiences at museums and galleries, and the seamless live-streaming of cultural festivals, all of which can entice a global audience and drive interest in visiting Nigeria.

Furthermore, the improved connectivity will enhance the operational efficiency of larger tourism establishments like hotels and resorts, enabling them to offer world-class services and amenities that rely on a stable internet connection. This includes everything from in-room entertainment and online concierge services to efficient back-of-house operations.

While challenges such as security remain a concern for the Nigerian tourism industry, the widespread availability of reliable communication networks can play a role in mitigating these issues by enabling better security coordination and providing tourists with a constant link to support systems.

 

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FAQs

1. What is MTN Nigeria’s new strategy?

MTN is investing heavily in its network infrastructure (4G, fibre, towers) with the primary goal of leasing access to other companies, particularly Mobile Virtual Network Operators (MVNOs). This turns its network into a platform, creating a new wholesale revenue stream alongside its traditional retail business.

2. Why is MTN helping its competitors by leasing its network to them?

MTN earns revenue from leasing its infrastructure without bearing the cost of acquiring or managing the end customers. This increases the overall traffic and utilisation of its network, making its assets more profitable. It’s a “win-win” model where they profit from the growth of the entire market, not just their subscribers.

3. How will this investment affect me as an MTN customer?

This massive investment in network expansion and upgrades will likely lead to better service for MTN customers, including broader 4G coverage, faster internet speeds, and improved network reliability and resilience.

4. What is an MVNO, and how does this affect them?

An MVNO (Mobile Virtual Network Operator) is a company that provides mobile services to customers but does not own the physical network infrastructure. By leasing from MTN, new MVNOs can enter the Nigerian market more quickly and affordably, which can lead to more competition and specialised service offerings for consumers.

5. How much did MTN invest, and what were the financial results?

MTN invested $377.13 million (₦565.7 billion) in the first half of 2025. This investment contributed to strong financial performance, including a 54.6% rise in service revenue and a profit after tax of $276.6 million (₦414.9 billion), a significant turnaround from a loss in the previous year.