MTN Nigeria generated a record ₦2.97 trillion in service revenue in the first half of 2026, but the huge figure tells only part of the story.
Behind the revenue is the enormous cost of building and maintaining the infrastructure needed to keep millions of Nigerians connected.
Speaking at MTN Nigeria’s H1 2026 mid-year results presentation, themed “Beyond the Numbers: What the Results Tell Us About Nigeria’s Digital Future,” Modupe Kadri, the company’s Chief Financial Officer, said the telecom business requires continuous investment.
“The numbers, impressive as they are, only tell part of the story,” Kadri said, stressing that the company’s scale comes with a responsibility to keep investing in the economy.
MTN ended the first half of 2026 with 92.2 million subscribers, equivalent to roughly two out of every five Nigerians.
The company’s active data users also increased by 9.3 per cent to 55.7 million. Average monthly data consumption rose by 15.2 per cent year-on-year to 14.8GB per user.
As more Nigerians moved online, MTN’s data revenue increased by 38.4 per cent, accounting for more than 57 per cent of its total service revenue.
The company has also expanded its broadband services through fibre-to-the-home (FTTH) and 5G fixed wireless access. Its financial technology platform, MoMo, had 5 million active wallets during the period.
Beyond its direct operations, MTN said its wider ecosystem supports about 2 million Nigerian jobs, businesses, trade partners and field agents.
Nigeria’s growing demand for data means telecom companies must keep investing in network infrastructure.
MTN’s total network data traffic increased by 25.8 per cent year-on-year in the first half of 2026. Smartphone penetration among its subscribers stood at 66.4 per cent.
To meet this demand, the company operates more than 62,000 base station sites, 43,000 kilometres of fibre-optic cable and 16 switching centres across the country.
Its network covers 93.7 per cent of the population on 2G, 87.6 per cent on 3G and 84.6 per cent on 4G, while 5G coverage has reached 12.8 per cent.
MTN spent ₦620.5 billion on capital expenditure in the first half of 2026, excluding leases. This followed more than ₦1 trillion in capital expenditure in 2025.
The reason for the continued spending is straightforward: as Nigerians consume more data, operators must expand capacity, build more sites and deploy more fibre.
MTN’s revenue does not simply translate into profit.
A significant portion flows back into the economy through trade commissions, network operations, taxes, infrastructure maintenance and other expenses.
About 31 per cent of H1 revenue went to trade partners, including dealers, retailers and agents.
Another 24 per cent went into operating expenses, rent and utilities, including the cost of powering and maintaining the network.
Government taxes, duties and regulatory levies accounted for about 15 per cent, while finance costs took 14 per cent.
Depreciation and amortisation accounted for 7 per cent, while maintenance represented another 5 per cent.
The result was a relatively small profit margin compared with the size of the revenue generated.
One of MTN’s biggest operational challenges remains the cost of electricity.
With the national grid unable to provide reliable power across its network, the company continues to depend heavily on diesel-powered generators.
MTN spent approximately ₦29.75 billion on diesel in the first six months of 2026. That works out to an average of about ₦164.4 million every day.
The cost highlights one of the hidden expenses behind Nigeria’s digital expansion. Every call, message, video stream or online transaction depends on infrastructure that must be continuously powered.
MTN also remains a major contributor to government revenue.
The company paid ₦622.6 billion in taxes, duties and regulatory levies during H1 2026.
Its total payments to government have remained substantial in recent years, with ₦543.9 billion paid in 2023, ₦764 billion in 2024 and ₦878.7 billion in 2025.
The company also spent more than ₦2.7 trillion on local Nigerian suppliers in 2025, further demonstrating the scale of its contribution to the domestic economy.
The telecommunications sector itself contributes about 9.2 per cent to Nigeria’s GDP, making it a major pillar of the economy.
MTN’s economic footprint also extends to the capital market.
The company said the number of Nigerian shareholders increased from about 800 at its May 2019 listing to 346,000 by June 2026.
More than 200,000 retail investors joined through public offers, while pension fund administrators hold significant stakes on behalf of about 11 million Nigerian retirement savers.
MTN’s social investment has also grown.
Through the MTN Foundation, which receives funding equivalent to 1 per cent of the company’s profit after tax, the company invested ₦1.4 billion in community projects during H1 2026.
Its cumulative investment has reached ₦34.4 billion, covering 1,093 project sites across Nigeria’s 36 states and the Federal Capital Territory.
The company said these projects have reached more than 32.3 million people.
MTN’s H1 2026 results highlight an important reality about Nigeria’s digital economy.
The ₦2.97 trillion revenue figure is impressive, but keeping Nigeria connected requires enormous and continuous spending.
From diesel and fibre to base stations, spectrum, taxes, staff, dealers and maintenance, a large share of telecom revenue is recycled into the economy.
As data consumption continues to rise and 5G adoption expands, operators will need to invest even more in network capacity.
For Nigeria, the lesson is clear: a stronger digital economy depends not only on how much Nigerians use telecom services, but also on the infrastructure, energy and investment needed to keep those services running.
