MTN Group has disclosed plans to increase
substantially its capital spending in Nigeria in the
new fiscal year till 2017 after agreeing to settle a
$1.7 billion fine in its biggest market.
The South African-owned telecommunications firm
is to spend $726 million (N143 billion) (11 billion
Rand) in upgrading its Nigeria’s network in the
2016 fiscal year.
is to spend $726 million (N143 billion) (11 billion
Rand) in upgrading its Nigeria’s network in the
2016 fiscal year.
The capital outlay, according to Bloomberg
yesterday, more than doubles its initial capital
spending target in the Nigerian market, a
development coming five days after agreeing to pay
a heavily-reduced penalty to settle a regulatory
dispute with Nigeria for missing a deadline to
deactivate more than five million unregistered SIM
cards.
The investment plan in Nigeria is also substantially
higher than its spending of nearly $327.82 million
(N65.2 billion) last year. The firm is, however, yet
to give a specific target for 2017.
MTN is the largest mobile phone operator in
Nigeria with 57 million subscribers, 39 per cent
market share and the country accounts for about a
third of its group revenues.
According to information on a presentation on its
website, MTN’s plan will see the roll-out of 3G
network population coverage from 67.23 per cent to
about 90 per cent.
The aggressive roll-out of fibre to six Nigerian cities
by the end of 2016 will enable the connections.
The company also said it expected higher revenues
in Nigeria supported by reconnecting subscribers
and the introduction of new services in May.
It would be recalled that the Nigerian
Communications Commission (NCC) had on
October 20, 2015, imposed a fine of N1.04 trillion,
later slashed to N780 billion on MTN for failure to
disconnect 5.1 million improperly-registered lines
on its network within the prescribed deadline.
MTN’s action was adjudged to have violated the
country’s SIM registration regulations, and waned its
enthusiasm in further capital investment, particularly
to upgrade its network.
country’s SIM registration regulations, and waned its
enthusiasm in further capital investment, particularly
to upgrade its network.
By the new announcement, analysts, however, said
the telecommunications company has bounced
back in deepening its biggest market following 68.3
per cent reduction in its N1.04 trillion fine.
In April, this year, MTN said its investment profile
in Nigeria had further risen by 23 per cent from $13
billion to $16 billion (over N3 trillion) in the last
two years.
The investment represents about half of the total
assets in the nation’s telecoms industry, which
currently stands at over $32 billion as at mid-2013,
according to data from the NCC.
In a document released recently, MTN Executive,
Amina Oyagbola, was quoted as saying: “In Nigeria,
the revolution in the ICT sector has provided well
over $32 billion in foreign direct investment over the
last 15 years. As part of that ICT ecosystem and
guided by our recognition of the boundless potential
of our great nation within the digital economy, MTN
has invested over $16 billion (over N3 trillion) to
date in fixed assets and facilities nationwide to
build the most expansive network in the country.”
Oyagbola said that Nigeria’s Information and
Communication Technology (ICT) continues to
attract foreign investments and unleash further world
of opportunities for the economy.
She said such investments in infrastructure, as has
been made by MTN, have created an ICT backbone
that powers various critical sectors of the economy
such as banking, e-commerce, insurance, oil and
gas.
