MTN Nigeria Communications Plc has invested N202.4 billion in capital expenditure (Capex) in the first quarter of 2025, marking a 159 per cent increase compared to the same period last year.

The investment, according to the company’s unaudited financial results for the quarter ended March 31, is aimed at improving network infrastructure and enhancing service delivery to customers across the country.

The telecom giant recorded a 40.5 per cent growth in service revenue, driven by strong demand and strategic commercial execution. Data revenue surged by 51.5 per cent, supported by a growing active user base and increased data consumption.

In its fintech division, MTN Nigeria reported a 57.9 per cent rise in revenue, attributed to the strong performance of airtime lending services and higher float income.

However, its active wallet base declined by 25.7 per cent to 2.1 million, reflecting the company’s focus on quality over quantity in customer acquisition.

Despite challenges in the broader economy, MTN Nigeria posted a profit after tax of N133.7 billion, recovering from a loss of N392.7 billion in the previous year. Its EBITDA increased by 65.9 per cent, with the EBITDA margin expanding to 46.6 per cent.

Karl Toriola, chief executive officer, MTN Nigeria expressed confidence in the company’s trajectory, stating: “We are pleased with our performance in the first quarter of 2025, which reflects the continued execution of our strategic priorities and the resilience of demand for our services.

“Building on the momentum from Q4 2024, our Q1 results place us firmly on the path to restoring profitability and achieving a positive net asset position within the current financial year, while increasing our investments to improve network and service quality.”

With a free cash flow of N209.9 billion, MTN Nigeria maintains a solid funding and liquidity position, reinforcing its market leadership in the telecommunications sector.

MTN Nigeria Communications Plc has said it generated N1.0 trillion in service revenue in the first quarter of 2025, a 40.5 per cent increase from the N752.99 billion earned in Q1 2024.

MTN Nigeria said this in a corporate filing with the Nigerian Exchange Ltd. on Tuesday.

However, the company’s after tax dropped by 134 per cent, falling to N133.7 billion from N392.7 billion in the same period of 2024.

Its total subscriber base grew by 8.2 per cent to 84.1 million, with 3.2 million new additions in Q1 2025.

MTN Nigeria also said the number of its active data users rose by 13 per cent to 50.3 million, following the addition of 2.6 million users.

EBITDA climbed 65.9 per cent to N492.7 billion, while EBITDA margin improved by 7.2 percentage points to 46.6 per cent.

The company recorded free cash flow of N209.9 billion and earnings per share stood at N6.38.

Karl Toriola, MTN Nigeria CEO, expressed satisfaction with the Q1 2025 results, citing strong strategic execution and resilient service demand.

He said momentum from Q4 2024 had helped put the firm on track to restore profitability and achieve a positive net asset position.

He added that regulatory approval for price adjustments was essential to sustain investment and maintain service quality.

This approval enabled N202.4 billion in capital expenditure, up 159 per cent, aimed at expanding capacity and enhancing user experience.

Toriola said the 40.5 per cent growth in service revenue underscored strong demand and commercial discipline.

He noted that Q1 results do not yet reflect the full impact of price changes made late in the quarter.

Some federal lawmakers, yesterday, exchanged heated arguments with telecom operators in the country over the roles they are supposed to play to stem the tide of incessant kidnapping and other phone-related crimes in the country.

The lawmakers said the telcos were not doing enough to track kidnappers, despite the number of calls they make to victims’ families demanding ransom.

However, the telcos swifty responded that the lawmakers were mistaking them for security agencies, instead of the telecommunications services providers they were, clarifying that their duties were to provide telecom services to their subscribers and not to catch criminals.

They  however, clarified that where and whenever the security agencies had needed their support or services in information that would lead to locating or arresting kidnappers and other criminals, who perpetrated crimes through mobile phones, they had gladly and freely rendered result-oriented support.

The scene played out at the first day of the two-day colloquium on the Nigerian Communications Act, NCA 2003, at Sheraton Hotels, Ikeja, Lagos, with the theme “22 years after: Reassessing the Nigerian Communications Act –Challenges, Opportunities, and Future Directions for a Digital Nigeria”

Ben Etanabene, member of House of Representatives, representing Okpe, Sapele and Uvwie federal constituency, Delta State, was the first to throw the salvo, wondering why despite all the money and time expended in registering phone lines in the country, kidnappers were still operating freely without telcos tracking them.

“Every part of this country, kidnappers are on the rampage, kidnapping and making demands for ransom. Why are the telecom operators not tracking and helping in arresting them before they wreak havoc?” he queried.

Etanabene, who claimed to have been a victim of kidnappers in the past, queried why the telcos and the NCC couldn’t provide geo-location services that would ensure kidnappers were located and nabbed before they carried out their actions, even when all over the world, technology deployment stemmed same crime.

Corroborating him, Ayodele Festus, another member of House of Representatives, who represents Ile-Oluji in Ondo State, said the telcos should improve their services.

He alleged that the telcos were smiling to the bank at the expense of subscribers, who hardly finish a call without it dropping at least five times.

He alleged that there was an increase in customer dissatisfaction because, according to him, “millions of subscribers are deeply frustrated.”

Also, Mr Moshood Olawale, yet another member representing Lagos Mainland in the House of Representatives, alleged that while it was expected that the Nigerian Communications Commission (NCC), and the telcos collaborated for the progress of the sector, what appeared to be playing out was connivance, explaining why telecom tariff goes up instead of coming down.

However, in a swift reaction, Gbenga Adebayo, chairman of Association of Licenced Telecoms Operators of Nigeria (ALTON), punctured the claims of the lawmakers, saying operators were doing a lot to stem phone-related crimes in the country.

Adebayo said: “In the first instance, we are clearly telecom services providers and do not have the mandate to run around arresting criminals.

“Again, kidnappers usually don’t use their own numbers to call families of their kidnapped victims for ransom. Rather, they use the phone of the kidnapped, while moving from one point to another.

“Then, also remember that there is a privacy law, which gives every subscriber right to privacy until there is a lawful reason to intercept their conversations.

“The worst is that the security agencies have not come to ask for geo-location of event and we refused giving it out. At least, there is Law of Lawful Interception, which gives them right in that regard.’’

Also responding, Tobechukwu Okigbo, Corporate Service Executive, MTN Nigeria,  told the lawmakers that in terms of affordability, Nigeria was one of the cheapest country with very low tariff in Africa, meaning that their allegation that Nigerians paid the highest price for telecom services was not based on empirical facts.

He also reminded the lawmakers to consider legislating on telecom infrastructure protection which would nip the cases of theft and incessant fibre cuts and vandalism, in the bud.

On his part, Dr. Aminu Maida,  executive vice chairman of NCC, corrected the impression that the commission was conniving with telcos but stressed the importance of collaboration of the two bodies to deliver quality services to Nigerians.

Credit – Vanguard