MTN plans to invest $1.5bn for broadband expansion in Nigeria

• Stakes 14% of MTN Nigeria shares to local investors

MTN Group delegation led by the President and Chief Executive Officer, Ralph Mupita, MTN Nigeria has announced its plans to invest 640 billion naira (approximately US$1.5 billion) over the next three years to expand broadband access across the country.

The Group made this known when they met with the Vice President of Nigeria, Prof. Yemi Osinbajo in Abuja, adding that it is in line with the federal government’s 2020-2025 National Broadband Plan and in support of MTN Group’s strategy, Ambition 2025: Leading digital solutions for Africa’s progress.

In the same vein, MTN Group has also disclosed plans to sell down 14% of MTN Nigeria to the local investors.

The Group’s President and Chief Executive Officer, Ralph Mupita informed key stakeholders which includes President Muhammadu Buhari; Vice President Yemi Osinbajo; Minister of Communications and Digital Economy Dr Isa Ali Pantami; Executive Vice Chairman Prof Umar Garba Danbatta and Central Bank of Nigeria Governor Godwin Emefiele he met during a three-day visit to Abuja and Lagos that “Nigeria is one of our most important markets. We have a proud history of partnering with Nigeria and Nigerians to drive faster and more inclusive growth through digital transformation.”

Mupita, who led the Group’s Chief Financial Officer, Tsholo Molefe, MTN Nigeria Chairman Ernest Ndukwe and the Nigeria CEO Karl Toriola on the visit, assured of MTN’s support for Nigeria’s plans to secure 90% broadband population coverage by 2025.

Mupita, noted that this aligns with the Group’s belief that everyone deserves the benefits of a modern connected life and MTN’s work to extend digital and financial inclusion across Africa.

The delegation lauded Nigeria’s plans to auction 500MHz of 5G spectrum: five blocks of 100MHz in the 3500MHz band, which Mupita noted would facilitate accelerated broadband access.

Mupita revealed MTN Group’s plans to sell down 14% of MTN Nigeria to Nigerian investors were well advanced and would happen as soon as conditions were conducive.

“The Nigerian business, in which MTN Group has a 78,8% stake, sought to have the largest retail shareholder base on the Nigerian Stock Exchange, where it has a market capitalisation of 3.4 trillion naira (US$8.2 billion).

“To mark the 20th anniversary of MTN’s operations in Nigeria, MTN Nigeria plans to build a new flagship headquarters in Lagos,” Mupita added.