Get Guardian on GoogleTelecom operators, MTN Nigeria and Airtel Africa, have committed huge investments into telephone service expansion in Nigeria, cum Africa, which is fast aiding revenue growth, data adoption, and strengthening average revenue per user (ARPU).
Together, the two operators spent N864.8 billion (MTN Nigeria) and $657 million (Airtel Africa) on capital expenditure (CAPEX) according to their latest reporting periods of September 30, 2026 (Q3 and H1, respectively). This amounted to nearly N1.7 trillion when translated into local currency.
Specifically, MTN Nigeria delivered service revenue growth of 23.7 per cent year-on-year to N4.6 trillion, with data revenue surging 35.8 per cent to N2.68 trillion. EBITDA rose 36.8 per cent to N2.6 trillion, while profit after tax jumped 55.3 per cent to N1.2 trillion.
CAPEX excluding leases increased 14.2 per cent to N864.8 billion, representing an intensity of 18.7 per cent. In Q3 alone, capex accelerated by 69.1 per cent, reflecting MTN’s aggressive rollout of 4G and 5G infrastructure and expansion of home broadband.
MTN CEO, Karl Toriola, emphasised that growth is increasingly volume-led, driven by deeper data adoption and rising demand for home broadband. Average monthly usage per active data user grew 16.2 per cent to 15.3GB, while smartphone penetration reached 66 per cent, lifting network traffic by 30.1 per cent. Fintech also showed resilience, with mobile money revenue more than doubling, up 102.2 per cent, supported by wallet balances that quadrupled to N43.8 billion.
On its part, Airtel Africa posted 28.2 per cent revenue growth to $3.82 billion in H1’27, with constant currency growth of 20.8 per cent. Data revenue surged 35.3 per cent to $1.57 billion, while mobile money revenue climbed 34.8 per cent to $840 million. Profit after tax rose 20.5 per cent to $452 million, and underlying EBITDA grew 32.8 per cent to $1.92 billion, with margins hitting a record 50.4 per cent in Q2.
CAPEX more than doubled to $657 million, reflecting Airtel’s commitment to reinforce market position and accelerate growth. The company added 4,200 new sites during the period, expanding coverage and capacity while supporting home broadband development.
ARPU strength was evident, rising 15 per cent to $3.4, driven by increased smartphone penetration (now at 51.6 per cent) and higher average data usage per customer, which jumped from 10.1GB to 13.3GB. Mobile money adoption also surged, with customers up 22.4 per cent to 60.9 million, reinforcing Airtel’s role in deepening financial inclusion.
CEO Sunil Taldar, noted that despite inflationary pressures from fuel costs, Airtel’s cost efficiency program and scale benefits enabled margin expansion. He also highlighted the strategic importance of Airtel Money’s IPO on the London Stock Exchange, which provides financial flexibility and global investor visibility.
The combined N1.7 trillion ($657 million) in capex by MTN and Airtel Africa underscores a shared strategy: investing in infrastructure as the backbone of growth.
MTN Nigeria reaffirmed guidance of “at least low-20 per cent” service revenue growth and EBITDA margins in the “mid-to-high-50 per cent” range. Airtel Africa, meanwhile, is leveraging its strong balance sheet and robust cash generation to accelerate investment, with leverage improving to 1.6x from 2.1x.
Both operators are navigating inflationary pressures and energy costs, but their aggressive capex strategies, coupled with rising ARPU and expanding mobile money ecosystems, position them to sustain growth and deliver long-term shareholder value.
