MTN Nigeria and Airtel Increase Network Spending as Data Demand Grows

The growing demand for mobile internet in Nigeria is pushing telecommunications companies to increase investment in network infrastructure as more people depend on digital services for communication, business, education and entertainment.

MTN Nigeria and Airtel Nigeria have both increased their capital expenditure as data consumption rises and operators face the need to expand network capacity, improve coverage and deliver more reliable services.

Their latest financial results also point to a common reason for the spending: customers are using more data, and this is creating greater demand for network capacity.

Rising Data Consumption Drives Investment

The increase in mobile data usage is changing the way telecommunications companies operate and generate revenue.

Average monthly data usage per active user also increased by 16.2 per cent to 15.3 gigabytes. Network data traffic grew by 30.1 per cent during the nine-month period, while data revenue increased by 35.8 per cent to ₦2.68 trillion.

These figures show that data services are becoming an increasingly important part of MTN’s business. The company is therefore investing in the infrastructure needed to accommodate more users and higher levels of consumption.

MTN Nigeria Steps Up Network Spending

MTN Nigeria’s capital expenditure, excluding leases, rose to ₦864.8 billion in the nine months ended September 2026, compared with ₦757.4 billion in the corresponding period of 2025. Including leases, nine-month capital expenditure fell 5.0 per cent to ₦1.19 trillion, from ₦1.25 trillion a year earlier.

The company said its investment accelerated during the third quarter as it increased its network rollout to expand coverage and capacity, improve service quality and support the growth of home broadband.

Its Chief Executive Officer, Karl Toriola, linked the company’s performance to rising customer activity and continued investment in infrastructure.

The statement reflects the growing relationship between data consumption and infrastructure investment. As customers use more internet services, operators must ensure that their networks can handle the additional traffic without a decline in performance.

MTN’s results also show that its home broadband business is becoming an important part of its expansion strategy. Its fibre-to-the-home service now carries approximately 13 per cent of the company’s total data traffic, helping to reduce pressure on the mobile network while providing customers with another option for internet access.

For MTN, the investment is not only about increasing the number of subscribers. It is also about improving the capacity of its existing network to serve customers who are consuming more data.

Airtel Nigeria Records Higher Capital Expenditure

Airtel Nigeria is also increasing its investment as demand for data services grows.

According to Airtel Africa’s half-year financial results for the period ended September 30, 2026, Airtel Nigeria recorded capital expenditure of $177 million, compared with $74 million in the same period of the previous year. This represents an increase of approximately 139.9 per cent.

The spending formed part of Airtel Africa’s wider investment programme, which saw the group increase its capital expenditure to $657 million during the six-month period. The group also added approximately 4,200 network sites to improve coverage and capacity across its operations.

Airtel Nigeria’s operating figures show why the investment is important. Its data customer base increased by 11.8 per cent to 32.9 million, while average monthly data usage per smartphone customer rose to 16.7 gigabytes from 12.7 gigabytes a year earlier. Data revenue in Nigeria also increased by 33.8 per cent in constant currency, showing the growing contribution of internet services to the company’s business.

Sunil Taldar, Chief Executive Officer of Airtel Africa, said the company had increased its investment to support future growth and improve its network.

The company has also identified rural coverage, 4G availability, 5G expansion and home broadband as important areas for its infrastructure development.

Its approach shows that network investment is not limited to serving customers in major cities. Expanding coverage in underserved communities also provides opportunities to attract new subscribers and increase access to digital services.

Competition in the Telecoms Market Is Increasing

The spending by MTN and Airtel reflects the growing competition in Nigeria’s telecommunications industry, particularly as data services become a major source of revenue.

The difference shows that the two companies are competing from different positions in the market. MTN has a larger existing customer base, while Airtel is also recording growth in data usage and increasing its investment to strengthen its services. For subscribers, this competition could encourage operators to improve their networks and introduce services that respond to changing customer needs. It could also support the expansion of broadband services for homes and businesses.

However, the benefits will depend on how effectively the companies translate their spending into improved network performance.

The Cost of Expanding Network Infrastructure

Although higher data demand creates opportunities for telecommunications companies, expanding and maintaining network infrastructure comes with significant costs.

Operators must invest in equipment, network sites, fibre connections and other facilities needed to deliver reliable services. They must also manage operating expenses, including electricity and fuel used to power network infrastructure. The rising cost of energy is one challenge identified in the companies’ latest reports.

MTN Nigeria said higher diesel-related tower costs affected its operating environment, although its efficiency programme helped contain some of the pressure. Airtel Africa also reported that fuel prices had increased across its markets, with higher fuel costs affecting its operations in Nigeria during the reporting period.

These expenses matter because network expansion requires more than installing additional equipment. Operators must also ensure that existing and new sites remain operational and can provide consistent service. This creates a difficult balance between increasing investment, controlling operating costs and keeping services affordable for customers.

Will Subscribers Experience Better Network Quality?

For customers, the expectation is straightforward: faster connections, fewer interruptions and more reliable access to internet services, particularly in areas where network quality remains a concern.

The Nigerian Communications Commission also has a role in ensuring that operators meet service quality requirements and that infrastructure expansion translates into better services for subscribers. As data consumption continues to rise, the ability of telecommunications companies to deliver reliable connectivity will become an important factor in retaining customers and competing in the market.

Conclusion

The increased network spending by MTN Nigeria and Airtel Nigeria reflects the growing importance of data services in the country’s telecommunications industry. As more Nigerians depend on mobile internet for business, education, communication and other daily activities, operators are under pressure to expand their infrastructure and improve network capacity.

Both companies are recording growth in data usage and revenue, creating a strong reason to invest in network expansion. However, the success of these investments will not be measured by the amount spent alone. Subscribers will ultimately judge the results through the quality of service they receive. Better coverage, faster internet speeds and fewer interruptions will determine whether the increased spending delivers meaningful improvements.

As competition in the telecommunications market continues, MTN and Airtel will need to show that their investments can support business growth while providing a more reliable digital experience for Nigerians.

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