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

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.

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.

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