MTN Nigeria to invest $1.5 billion to expand broadband over three years, execute FG’s road tax credit scheme
MTN Nigeria plans to investNGN 600 billion ($1.5 billion) over the next three years to expand broadband access in Africa’s most populous country, its chief executive said on Monday.
“Operationally, our mobile subscribers closed H1 at 68.9 million, down 9.9% from December 2020. This was due to the regulatory restrictions on new SIM sales and activations, which was lifted on 19 April 2021,” MTN Nigeria’s CEO Karl Toriola said on an analyst call.
Toriola said the telecoms company was boosting its 4G coverage and providing home broadband as part of a rural connectivity programme. MTN said it plans to connect around 1,000 rural communities to its network this year and extra 2,000 communities next year.
In March, MTN Nigeria said it was at an advanced stage in renewing its operating spectrum and licence in Nigeria for another 10 years from September.
The spectrum underpins MTN’s data network and telecom coverage in Africa’s biggest economy.
Nigeria expects to start auctioning spectrum for next generation 5G network in the fourth quarter of this year, the head of the country’s communications commission has said.
Toriola said MTN plans to take advantage of a Nigerian government road infrastructure tax credit scheme to rehabilitate a highway in the southern part of the country to lower its tax exposure.
Toriola in his statement said, “Operationally, our mobile subscribers closed first half of the year at 68.9 million, down 9.9% from December 2020. This was due to the regulatory restrictions on new SIM sales and activations, which was lifted on 19 April 2021.’’
He said that MTN plans to take advantage of the road infrastructure tax credit scheme, an initiative by the Federal Government, to rehabilitate a highway in the southern part of the country to lower its tax exposure.
MTN Nigeria had said that it plans to connect around 1,000 rural communities to its network in 2021 and extra 2,000 communities next year.
MTN Nigeria had earlier in March said that it was an advanced stage in the renewal of its operating spectrum and licence in Nigeria for another period of 10 years with effect from September.
The spectrum underpins MTN’s data network and telecom coverage in Nigeria, Africa’s biggest economy.
The Executive Vice Chairman of the Nigerian Communications Communication (NCC), Prof. Umar Danbatta, had earlier said that Nigeria expects to start auctioning spectrum for the next generation 5G network by the fourth quarter of this year.
MTN had earlier said that its planned investment would also support MTN Group’s strategy, Ambition 2025 and leading digital solutions for Africa’s progress.
MTN had earlier insisted on its support for Nigeria’s plans to secure 90% broadband population coverage by 2025, adding that its plan to sell down 14% of MTN Nigeria to Nigerian investors were at an advanced stage and would happen as soon as conditions were conducive.
MTN Nigeria, the largest network by market share, said it lost 7.6 million mobile subscribers in the first half of 2021, especially due to the Federal Government’s suspension of new SIM registration.
Reuters/Nairamatrics
