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MTN faces pressure as 95% network runs on diesel in Nigeria, CEO says – Technology Times

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Rising diesel costs are putting pressure on MTN Nigeria’s profitability, with the telecommunications company revealing that about 95% of its network in the country is powered by diesel generators.

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Ralph Mupita, MTN Group President and CEO. Image credit: MTN.

The disclosure was made by Ralph Mupita, MTN Group President and CEO on Monday during the presentation of the company’s interim results for the six months ended June 30, 2026.

Mupita says higher global oil prices during the period translated into increased diesel costs for the Nigerian operation, where dependence on generators remains extensive.

“Our network in Nigeria is like 95% on diesel generators, 5% on the grid,” Mupita says adding that energy costs, largely driven by diesel, now account for more than 30% of MTN Nigeria’s operating expenditure.

“Just over 30% of opex within Nigeria is energy prices, and that’s substantially diesel,” he says.

Diesel costs to hit coming quarters

The impact of higher diesel prices, according to Mupita, is not limited to the quarter in which the increase occurs because of the way MTN Nigeria’s energy contracts are structured. The cost recognised in a quarter is based on the average diesel price from the previous quarter. This means the effect of fuel-price movements can carry into subsequent reporting periods.

“And the way our contracts work, the cost in the quarter is the prior quarter’s average diesel price,” he explained. As a result, the higher diesel prices experienced during the second quarter are expected to affect MTN Nigeria’s third-quarter operating costs.

“What we experienced in Q2 of this year will come into Q3, and then Q3 will come into Q4,” Mupita says.

The cost pressure comes as MTN continues to invest heavily in its Nigerian network to meet growing demand for connectivity.

Data demand drives network investment

Mupita said demand for MTN’s services remains structurally strong in Nigeria, particularly as customers consume increasing amounts of mobile data.

He disclosed that the company recorded 2.7 million net customer additions in the first quarter, while average data consumption per customer reached 14.8GB.

The increase in data usage is pushing the company to continue investing in network capacity.

Mupita said MTN’s capital intensity in Nigeria exceeded 20% during the period as the company pursued growth in its mobile network and expanded its home connectivity strategy.

The operator is targeting the home broadband market through a combination of fixed wireless access and fibre, areas it believes offer significant growth opportunities in Nigeria.

The challenge for the company is that expanding network infrastructure also increases the amount of equipment that needs to be powered, making energy efficiency increasingly important to the economics of network expansion.

Nigeria remains a key growth market

Despite the pressure from energy costs, MTN maintained that Nigeria continues to offer strong growth opportunities.

Mupita described demand in the Nigerian market as robust, pointing to continued customer additions and rising data consumption.

He also noted that the naira remained relatively stable during the period, while liquidity at the prevailing exchange rate was not creating significant difficulties for the company. Inflation also moderated during the period.

However, higher diesel prices remain a major cost concern. Mupita says the impact of energy prices means MTN expects its Nigerian operation to remain within its medium-term guidance but towards the lower end of its EBITDA margin range.

“We are confident that the medium-term guidance framework we gave around Nigeria will maintain on service revenue, on the EBITDA margin will still be in range, but because of the high energy prices, we see ourselves at the lower end of the range,” he says.

The lower end of that range is around 53% EBITDA margin, according to the MTN CEO.

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Despite the pressure from energy costs, MTN maintained that Nigeria continues to offer strong growth opportunities. Mupita described demand in the Nigerian market as robust, pointing to continued customer additions and rising data consumption. Image credit: Image FX.

Airtime advance adds another pressure

Energy costs are not the only factor affecting MTN Nigeria’s financial performance.

The company also faced a significant revenue impact after Nigeria’s competition authorities directed it to suspend its airtime advance service in April.

Mupita said MTN responded by reducing its airtime advance base to about a quarter of its first-quarter run rate.

The suspension affected revenue generated during April, May and June, contributing to the weaker service revenue performance reported for the quarter.

However, MTN subsequently received communication from the competition authorities allowing the company to move towards restoring airtime advance through four vendors.

Mupita expects this to support the recovery of the business during the second half of the year, although he cautioned that the restoration would not immediately return the operation to its previous level because of the need for the new vendors to build experience and optimise their operations.

AI emerges as cost-cutting tool

Against the backdrop of rising energy expenses, MTN is also looking at technology, including artificial intelligence, to improve operational efficiency.

Ferdi Moolman, MTN CEO, South Africa says the group’s cost-efficiency programme is increasingly focused on structural changes to how the business operates rather than simply cutting expenses.

He cited the use of AI to improve power consumption at network sites in South Africa as an example.

“We did some proof of concept (POC) in the Western Cape, used AI to help us get more efficiency out of power consumption, which was very successful,” he says.

MTN plans to expand the initiative across the country. Moolman says the company still has significant room to extract efficiencies, with the broader cost initiative expected to take two to three years because of its structural nature.

For MTN in Nigeria, however, the scale of diesel dependence means energy costs will remain a major factor in determining how much of its strong data and subscriber growth translates into profitability.

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NHRC seeks peaceful, inclusive polity ahead of 2027 election

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The  Executive Secretary of the National Human Rights Commission, NHRC, Professor Tony Ojukwu, has canvassed for a peaceful, inclusive and rights-respecting polity ahead of 2027 general election

Ojukwu, a Senior Advocate of Nigeria, SAN, made the appeal on Wednesday against the backdrop of Nigeria joining the rest of the world to commemorate the 2026 International Day of Democracy.

His position on the significance of the Democracy Day was made public in a statement on his behalf by Mrs Fatimah Agwai Mohammed, Director Corporate Affairs and External Linkages.

He said that the day reminds the world that democracy is not just about elections, but about the dignity, voice, and rights of every citizen.

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Ojukwu stated that democracy represents the freedom to speak, to choose, to participate, and to hold power accountable without fear.

As the nation approaches the 2027 General Elections, he called on all politicians, political parties and their supporters to exercise restraint and responsibility in public utterances.

He further stressed that democracy thrives on debate, not on hate speech, inciteful statements, ethnic profiling, or threats.

The professor of law reiterated that words can build peace or destroy the nation, and urged the political class to make campaigns issue-based and shun any language capable of inciting violence or undermining national unity.

The Chief Human Rights Officer of the country noted that the commission will continue to monitor hate speech and electoral violence.

He called on every eligible Nigerian to rise above voter apathy and actively exercise their civic rights, adding that citizens should not stay away from the polls, sell votes, or believe that votes do not count as these emanate from voter apathy.

Ojukwu lamented that democracy dies when citizens withdraw and remain silent. He emphasized that the Permanent Voter’s Card remains the power of the people to choose desired leaders.

He therefore urged citizens to come out, vote and make votes count, describing the choice of leaders as both a right and a duty to Nigeria.

The Executive Secretary who is also the President of the Network of National Human Rights Institutions in West Africa, NNHRI-WA, called on the Federal Government, the Independent National Electoral Commission, INEC, and all security agencies to ensure a level playing field for all.

He further stated  that government must guarantee the safety of voters, journalists, observers, human rights defenders and the citizens at large.

“Anyone regardless of status or party affiliation, who attempts to make the polity unbearable, who sponsors violence, vote-buying, voter suppression, or attacks on democratic institutions ahead of the 2027 General Elections, must be promptly investigated and prosecuted in accordance with the law, adding that impunity remains the greatest threat to democracy,” he said.

Ojukwu called for commitment to a democracy that delivers not just elections, but justice, equality, and human rights for all.

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“This Is the Kind of Investment That Can Change the Future of Nigerian Football” — SSA Adeboye Impressed by Bariga Football Facility

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The Senior Special Assistant to the President on Grassroots Sports Development, Hon. Adeyinka Anthony Adeboye, has described the emerging Bariga football development project as the kind of private and community-driven investment Nigeria needs to strengthen the pathway from grassroots football to the national and international stage.

Adeboye spoke during a courtesy visit to the facilities of Bariga Stars Football Club, a grassroots football initiative founded by Hon. Alabi Kolade David (AKD), the immediate past Executive Chairman of Bariga Local Council Development Area and the All-Progressives Congress candidate for Somolu Federal Constituency. Alabi emerged as the APC candidate following the party’s May 2026 primary.

Read Also: SSA Adeboye Appoints Veteran Sports Journalist George Aluo as Media Consultant | Sports247 Nigeria

The visit allowed the Presidential aide to inspect the work already carried out at the facility, as well as equipment being assembled for what is envisioned as a development camp for promising young footballers.

Upon completion, the project is expected to provide a structured environment for the identification, camping and development of U-15 and U-16 male and female football talents drawn from different parts of Nigeria.

Adeboye, who inspected different sections of the facility, expressed satisfaction with the level of work and investment already committed to the project, describing it as an encouraging example of what can happen when individuals and communities deliberately invest in young people through sport.

“What I have seen here is impressive because this is not just about putting up a football facility. It is about creating a home where young talents can be identified, brought together, properly trained and given an opportunity to develop.”

The SSA said the proposed focus on U-15 and U-16 players aligns strongly with his Office’s grassroots development mandate, particularly the drive to establish clearer pathways through which talented youngsters can progress from communities and schools into organised competitive football.

Adeboye was particularly encouraged by the decision to make the project available to both boys and girls, stressing that Nigeria’s grassroots football development must deliberately create equal opportunities for talented young female footballers.

“I am happy that the vision here includes both male and female players. If we are serious about the future of Nigerian football, we cannot leave anyone behind. Somewhere in our communities today are the boys and girls who can become the next generation of Super Eagles and Super Falcons players. Our responsibility is to find them early and give them the right environment to grow.”

The Bariga project is not Alabi’s first intervention in grassroots sports. While serving as Executive Chairman of Bariga LCDA, he publicly identified inadequate sports infrastructure as one of the obstacles facing talented youngsters in the community and initiated sports-facility projects to address the problem. In June 2025, his administration commenced work on the CMS Primary School Sports Complex, planned with a football field, track, tennis, volleyball and basketball courts, gym, changing rooms and other facilities.

Bariga Stars FC was subsequently publicly presented as a grassroots initiative established by Alabi to discover, nurture and promote football talents. Its 2025 trials attracted aspiring footballers and sports stakeholders, further demonstrating the project’s focus on talent identification.

Adeboye said such continuity was important because sustainable grassroots development cannot depend solely on occasional competitions or talent hunts.

According to him, identifying a gifted 15-year-old is only the beginning; the bigger responsibility is creating the coaching, facilities, education, competition, welfare and progression pathway required to ensure that the talent does not disappear.

“Nigeria has never lacked football talent. Our challenge has always been what happens after we discover them. Who trains them? Where do they stay? What competitions do they play? How are they monitored? How do they move to the next level? These are the questions a serious grassroots development system must answer.”

During the visit, Alabi indicated his desire to establish a working partnership between the Bariga football project and the Office of the Senior Special Assistant to the President on Grassroots Sports Development, with the objective of identifying and producing young talents capable of representing Nigeria in the future.

Adeboye welcomed the proposed collaboration, saying partnerships between government, communities, private investors, clubs and development academies would be critical to building a sustainable national talent pipeline.

“The Office of the SSA cannot develop grassroots sports alone, and government cannot do it alone. We need people who are prepared to invest in facilities, coaching and young athletes. When we find genuine projects that share this vision, there is room to explore how we can work together within the appropriate framework.”

He added that the ultimate measure of projects such as Bariga Stars should not simply be the beauty of their facilities, but the number of young lives they are able to transform.

“I want to return here in the years ahead and see young players who passed through this facility wearing the colours of Nigeria. That should be the dream. When a boy or girl enters here at 15 or 16, there must be a pathway that can take that child as far as his or her talent and hard work will allow.”

Adeboye said the initiative reflects the broader grassroots philosophy being promoted under the sports agenda of President Bola Ahmed Tinubu, where sports development is increasingly viewed not only through medals and national teams but also through youth empowerment, talent development and sustainable opportunities.

For the Presidential aide, the Bariga visit ultimately reinforced a message he has consistently carried across the country: Nigeria’s next generation of champions already exists at the grassroots; what they need is the structure, facilities and opportunity to be discovered.

“The talent is already there. What we must build is the pathway. If projects like this are properly developed and connected to a wider national talent-development system, then we will not have to keep asking where the next generation of Nigerian footballers will come from.”

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