MTN Nigeria and Airtel Africa have invested at least N613 billion in infrastructure in order to provide 4G and 5G networks to Nigerians.
This is contained in financial statements of the two telcos as summed up by analysts.
MTN reported in a filing that in 2022, it spent N504.33 billion on network deployment.
While this was happening, Airtel invested N108.79 billion ($236 million).
The new figure increases overall investment from N536.91 billion spent in 2021 by 14.19%.
In response to the increase, MTN said:
“Capital expenditure was N504.3 billion, up 23.5%, as a result of a faster rate of coverage expansion, with an emphasis on our rural telephone program and the 4G and 5G networks.
“We set up 7,784 rural sites, 588 5G sites, and 9,027 4G sites. Approximately 76% of the sites installed during the year were 4G-related. To enable us to seize growth possibilities, core Capex, excluding the right-of-use assets, climbed by 18.6% to N361.0bn, slightly above budget.
“Our faster Capex expenditures allowed us to seize growth possibilities in the data sector while reducing the risk of rising prices, disruptions to the supply chain, and foreign exchange threats. Despite this, the 17.9% Capex intensity was within our target ranges, which reflects our methodical approach to capital allocation. Free cash flow increased by 21.7% to N566.0 billion.
Segun Ogunsanya, Chief Executive Officer of Airtel Africa, commented on the group’s investment approach and said:
We have invested about $490 million in 4G and 5G spectrum across important markets over the past nine months to increase network capacity and quality, future-proof the business for future growth prospects, and promote economic growth across all of our regions.
