MTN’s 25-year journey Reflect sNigeria’s telecoms revolution

MTN Nigeria’s 25-year journey from launching Nigeria’s first mobile call to serving 92 million subscribers has mirrored the transformation of the country’s telecommunications industry, with the company now positioning itself for the next phase of growth driven by artificial intelligence, fintech, 5G and digital services.

The telecoms giant, which marked 25 years of operations in Nigeria at the weekend, said it had invested about N1.6 trillion in capital expenditure over the past 18 months alone to expand and strengthen its network infrastructure, underscoring the scale of investment required to support the country’s rapidly growing demand for digital connectivity.

The company disclosed its Y’ello Street Experience at MTN Plaza, Ikoyi, Lagos, where senior executives reflected on the evolution of the telecommunications industry and outlined plans to deepen investments in digital infrastructure and services.

The anniversary provides a snapshot of how dramatically Nigeria’s communications market has changed since MTN commenced operations in 2001.

What began with mobile voice calls has evolved into a digital ecosystem spanning high-speed internet, smartphones, mobile financial services, entertainment and increasingly artificial intelligence.

MTN’s Chief Financial Officer, Modupe Kadri, said the company had remained at the forefront of that transformation by continuously investing in successive generations of mobile technology, from 2G and 3G to 4G and 5G.

He said Nigerian consumers had become increasingly technology-savvy, forcing telecommunications operators to continually upgrade their networks and services.

“Nigerians are very tech-savvy. They always want the best technology, and MTN has consistently brought that technology to them. We delivered the country’s first mobile call, pioneered 2G, 3G, 5G and many other innovations because Nigerians always expect the very best,” Kadri said.

The scale of the company’s current operations highlights how far the market has moved from its early days.

MTN now serves about 92 million subscribers, with its network planning and optimisation carried out annually to anticipate subscriber growth and identify areas requiring additional coverage.

General Manager, Access Planning and Optimisation, Nasiru Hayatu, said maintaining network quality had become a continuous investment exercise as subscriber numbers and data consumption increased.

He said the company had continued to expand and optimise its network despite rising operating costs, describing annual network planning as one of the factors behind its ability to maintain its position in the market.

The huge capital requirement of running telecommunications infrastructure in Nigeria, however, remains a major challenge for operators.

Kadri said MTN had invested N1.6 trillion in capital expenditure in the last 18 months following the tariff adjustment approved by regulators, with the funds directed largely towards strengthening network infrastructure.

The company also pays more than N120 billion annually in taxes and levies, while 2.5 per cent of its total revenue goes towards annual operating licence obligations.

The figures underline the telecommunications industry’s growing economic footprint beyond its traditional role as a provider of voice and data services.

The next stage of the transformation is increasingly centred on digital services rather than traditional voice revenue.

MTN said it plans to deepen investments in artificial intelligence and fintech as regulatory reforms create greater room for innovation in financial technology.

Kadri said changes in the regulatory environment, particularly reforms by the Central Bank of Nigeria, had improved the operating environment for fintech businesses and created opportunities for more sophisticated digital financial services.

He said customers should expect fintech offerings comparable with those available in other emerging markets.

For MTN, artificial intelligence is also becoming a core part of its strategy.

Chief Marketing Officer, Onyinye Ikenna-Emeka, said the company was deploying AI to improve operational efficiency, understand customer behaviour, personalise services and strengthen market segmentation.

She said the technology would allow MTN to respond more effectively to changing customer needs while developing services around the aspirations of individuals and businesses.

The shift towards data-intensive services also makes smartphone affordability increasingly important.

Ikenna-Emeka said the cost of smartphones remained one of the biggest barriers to wider 5G adoption, prompting MTN to expand partnerships with original equipment manufacturers to improve access to 5G-enabled devices beyond major cities.

She said the company’s strategy was to reach consumers across all 36 states and the 774 local government areas.

Despite the growth of telecommunications services, MTN said infrastructure and policy constraints remain significant obstacles to faster digital expansion.

Ikenna-Emeka identified right-of-way approvals for fibre deployment as one of the policy issues affecting broadband expansion, stressing the importance of an enabling environment for operators seeking to improve nationwide connectivity.

The company also faces the high cost of powering telecom infrastructure, with operators relying heavily on self-generated electricity to keep network sites running.

These costs have become increasingly significant as networks expand and data traffic grows.

MTN said it was nevertheless supporting the Federal Government’s broadband expansion initiative and would continue working with the government to improve connectivity across the country.

MTN’s transformation is also extending beyond telecommunications and financial services into Nigeria’s rapidly expanding creative economy.

Chief Digital Officer, A’isha Umar Mumuni, said the company was expanding its digital entertainment portfolio through initiatives such as Next Afrobeats Star and Family Feud Nigeria.

The second season of Next Afrobeats Star is expected to build on the experience of the inaugural edition, while Family Feud Nigeria forms part of the company’s broader investment in entertainment.

Mumuni said MTN’s support for music, television, gaming and digital content reflected its belief in the potential of Nigeria’s creative ecosystem.

The company’s evolution therefore increasingly places it at the intersection of telecommunications, finance, entertainment and technology.

MTN’s anniversary comes at a time when Nigeria’s telecommunications industry is entering another phase of structural change.

The growth of artificial intelligence, 5G, digital payments, cloud-based services and online entertainment is changing the economics of connectivity, while demand for affordable smartphones and reliable broadband continues to expand.

For MTN, the challenge is no longer simply connecting Nigerians to a mobile network. It is building the digital infrastructure through which Nigerians communicate, transact, work, consume entertainment and participate in the wider economy.

Its N1.6 trillion capital expenditure over the past 18 months and 92 million subscribers illustrate the scale already achieved.

The company’s next phase will depend on whether it can convert that massive network footprint into deeper digital adoption while navigating high energy costs, infrastructure constraints, affordability pressures and evolving regulation.

After 25 years, MTN’s story has consequently moved well beyond the introduction of mobile phones. It now reflects Nigeria’s broader transition from a voice-driven communications market to a digital economy in which connectivity, financial technology, artificial intelligence and content are increasingly intertwined.