Since launching its Nigerian operations in 2001, MTN has poured more than US $10 billion into expanding the country’s digital backbone—building towers, laying fibre and extending mobile network coverage to millions. As Nigeria navigates currency volatility, inflationary pressures and an evolving regulatory landscape, MTN’s long-term investment underscores both its faith in Africa’s largest economy and its ambition to catalyse the broader African Continental Free Trade Area (AfCFTA) vision.

Deepening digital roots in Nigeria

MTN’s inaugural investment focused on establishing 2G voice and basic data services in major urban centres. By 2006, the operator began rolling out 3G across Lagos, Abuja and Port Harcourt, enabling Nigerians to access mobile internet for the first time. A decade later, 4G LTE arrived, and today MTN Nigeria serves over 80 million subscribers—nearly 40% of all mobile connections in the country GSMA. Its network of more than 18,000 base stations spans all 36 states and Abuja, reaching remote communities that were previously offline.

Beyond coverage, MTN has invested heavily in capacity upgrades and fibre backhaul. In 2024 alone, the company laid more than 2,500 km of fibre optic cable, linking major data centres and improving latency for enterprise customers. These enhancements have enabled Nigerian banks, fintech startups and e-commerce platforms to scale digital services nationwide, from mobile payments to telemedicine.

Navigating economic headwinds

Despite this progress, Nigeria’s macroeconomic environment poses challenges. In 2024, annual inflation averaged 23.9%, eroding consumer purchasing power and raising network operating costs as fuel, energy and transport expenses climbed Rest of World. Meanwhile, the naira depreciated by over 35% against the U.S. dollar, complicating MTN’s foreign-currency obligations on imported equipment and debt servicing.

To mitigate these pressures, MTN has diversified its procurement strategies—hedging currency exposure and sourcing locally where possible. The company also introduced tiered data-bundle pricing, allowing subscribers to purchase smaller, more affordable packages. As a result, mobile-broadband penetration climbed to 35% in early 2025, up from 28% two years prior, even as average revenue per user (ARPU) held steady 2024 – GSMA Mobile Connectivity Index.

Championing financial inclusion

With limited banking infrastructure—only 41% of Nigerian adults held a formal bank account in 2023—MTN Mobile Money (MoMo) has become a vital conduit for financial services. Launched in 2015, MoMo now counts over 35 million active wallets, facilitating peer-to-peer transfers, bill payments and merchant transactions. In 2024, MTN MoMo agents processed more than NGN 8 trillion (US $10 billion) in transaction value, underscoring the service’s role in bridging the financial inclusion gap GSMA Intelligence.

Regulators, recognizing mobile money’s impact, granted MTN a payment-service bank licence in 2024. The licence affords MTN greater latitude to offer savings, lending and insurance products—services that, in partnership with fintech startups, could extend credit to underserved micro-enterprises and rural farmers.

Building the AfCFTA digital spine

Africa’s landmark AfCFTA agreement aims to create a single market of 1.3 billion people, with a projected GDP of US $6.6 trillion by 2030. Yet tariff cuts alone won’t suffice. Digital connectivity and interoperability platforms are essential to unlock cross-border trade in goods and services.

MTN has positioned itself as a “digital bridge” between Nigeria and South Africa—the continent’s two largest economies. Hosting South Africa’s Minister of Trade, Industry and Competition, Parks Tau, at its Johannesburg headquarters, MTN reiterated its ambition to facilitate intra-African trade via robust mobile networks and payment rails. “Our role extends beyond commerce,” MTN declared. “We serve as an economic-diplomatic conduit—driving growth, fostering inclusion and unlocking opportunities for Africa’s shared prosperity.”

By integrating MoMo wallets across borders and piloting cross-network roaming bundles, MTN envisages a future where a Nigerian artisan can sell crafts in Johannesburg with seamless digital payments, or a South African agribusiness can manage logistics in Lagos via a single mobile app.

South Africa–Nigeria Trade and Investment Summit

Scheduled for late 2025 in Abuja, the inaugural South Africa–Nigeria Trade and Investment Summit offers a forum to tackle long-standing barriers: multiple currencies, non-tariff measures and regulatory misalignments. MTN has advocated for:

• Harmonized licensing: Streamline telecom and fintech regulations to allow operators licensed in one country to deploy services in another without redundant approvals.
  
• Interoperable payment systems: Mandate shared standards for mobile wallets and digital IDs to reduce friction in cross-border remittances.
  
• Investment incentives: Offer tax credits or co-investment schemes for pan-African digital-infrastructure projects, such as the planned Nigeria–Ghana and South Africa–Botswana fibre corridors.
  

By championing private-sector engagement and public-private partnerships at the summit, MTN hopes to catalyse policy reforms that benefit all stakeholders—governments, businesses and end users.

Harnessing partnerships for social impact

MTN’s investment narrative is as much about people as it is about profit. Through its MTN Media Innovation Programme, emerging Nigerian journalists and content creators spend a month in South Africa, learning digital storytelling, data journalism and multimedia production. Alumni from the 2024 cohort launched local podcasts and video-reporting platforms, amplifying voices from underserved communities.

Similarly, MTN’s “Tech4Her” initiative has trained over 5,000 young women in Lagos and Abuja on coding, digital marketing and cybersecurity. With tech-sector women making up just 30% of Nigeria’s ICT workforce, the programme seeks to narrow the gender gap and foster inclusive growth GSMA.

MTN also collaborates with NGOs to deploy solar-powered base stations in off-grid areas, ensuring network uptime during power outages. This “Energy-as-Connectivity” model not only improves reliability but also cuts diesel costs and reduces carbon emissions—aligning with MTN Group’s commitment to net-zero operations by 2040.

The road ahead: 5G, IoT and beyond

As data consumption soars—driven by video streaming, gaming and enterprise cloud services—MTN Nigeria is gearing up for 5G rollouts in major cities by mid-2025. Trials conducted in Lagos and Abuja have demonstrated peak speeds of up to 1 Gbps and latency below 10 ms, enabling use cases such as remote-surgery telemedicine and real-time logistics tracking.

The Internet of Things (IoT) represents another growth frontier. MTN is piloting smart-metering for electricity distribution companies in Kaduna and Ogun states, with plans to expand across the national grid. By equipping homes and factories with connected meters, utilities can optimize load management and reduce technical losses—translating into lower tariffs and improved service quality.

Agriculture, Nigeria’s primary employer, stands to benefit from IoT-enabled solutions as well. MTN has partnered with agritech startups to deploy soil-moisture sensors, drone-based crop monitoring and supply-chain traceability platforms. These innovations promise to boost yields, reduce post-harvest losses and open premium export markets for smallholder farmers.

Balancing ambition with resilience

MTN’s US $10 billion investment marks one of the largest foreign direct inflows into Nigeria’s digital economy. Yet success hinges on more than capital. Regulatory clarity, stable macro-policies and effective public-private collaboration are equally critical. As MTN CFO Ralph Madoff remarked at the 2025 Africa Tech Summit, “Our balance sheet is robust, our technology roadmap is clear—but our confidence in Nigeria’s future is founded on the quality of our partnerships—with government, regulators and communities.”

For Nigerians, the dividends of connectivity extend far beyond data speeds. Access to reliable mobile networks has translated into new jobs, expanded educational opportunities via e-learning platforms and a financial lifeline for unbanked households. With MTN’s continued backing—and a policy environment that supports digital innovation—Nigeria stands poised to lead West Africa’s economic resurgence and set a template for intra-continental cooperation under AfCFTA.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

12th May, 2025