MTN Nigeria to inject $1.5bn into broadband expansion plans

21st June 2021 By: Natasha Odendaal - Creamer Media Senior Deputy Editor

Telecommunications group MTN Nigeria plans to invest 640-billion naira, or $1.5-billion, over the next three years to expand the country’s broadband access.

The move is in line with the Nigerian government’s 2020 to 2025 National Broadband Plan ambitions of 90% broadband population coverage by 2025 and MTN Group’s Ambition 2025 strategy.

The group also plans to build a new flagship headquarters in Lagos to mark the twentieth anniversary of MTN’s operations in the country.

“Nigeria is one of our most important markets. We have a proud history of partnering with Nigeria and Nigerians to drive faster and more inclusive growth through digital transformation,” said MTN Group president and CEO Ralph Mupita following a three-day visit to Abuja and Lagos, in which he met a number of key stakeholders.

On June 17, Mupita, accompanied by MTN Group CFO Tsholo Molefe, landed in Nigeria for his first working visit since assuming office in 2020. The delegation was joined by MTN Nigeria chairperson Ernest Ndukwe and MTN Nigeria CEO Karl Toriola as they met with select partners and key stakeholders in the country.

The delegation also welcomed Nigeria’s plans to auction 500 MHz of fifth-generation spectrum, which comprises five blocks of 100 MHz in the 3 500 MHz band, which Mupita said would facilitate accelerated broadband access.

He added that the group’s plans to sell down 14% of MTN Nigeria to Nigerian investors were well advanced and this would happen as soon as conditions were conducive.

MTN Nigeria, in which MTN Group has a 78.8% stake, sought to have the largest retail shareholder base on the Nigerian Stock Exchange, where it has a market capitalisation of 3.4-trillion naira, or about $8.2-billion.