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MTN Group Plans To Double Capital Expenditures In Nigeria

MTN Group Plans To Double Capital Expenditures In Nigeria

South African based telecommunication company MTN Group has said in will significantly increase its capital expenditures in Nigeria in 2016 and 2017, starting with an upgrade and expansion of its wireless and fixed-line network in the West African nation.

Quoting MTN’s recent investors presentation, BDlive reported that the company is  planning to spend  11.1 billion rands ($730 million) to upgrade and expand its wireless and fixed-line network in 2016.

This will be more than double the 5 billion rand it spend in the west African nation in 2015, Eye Witness News reported.

The Africa biggest mobile-phone operator said on it website it will extend 3G coverage to 90 percent of Nigeria in 2017  from the current 67 percent coverage and start a fibre-network rollout in six cities in the country.

It did not disclose how much this will cost.

The company which announce in 2014 that it planned to invest $3 billion in expanding its infrastructure in Nigeria, came into some serious headwinds in the last quarter of 2015 after it was slapped with a record $5.2 billion fine by the Nigeria Communication Commission (NCC) for failing to comply with a unregistered SIM card switch off deadline.

MTN said last week that it had reached an agreement with the NCC to pay $1.7 billion over the next three years, effectively clearing a dark cloud that was hanging over the company’s unit in country.

The group gets about 37 percent of its revenue from Nigeria.

It threatened to shut down operations in seven Nigerian states over what they described as excessive harassment by government officials, according to a report in ITImpulse.