MTN Nigeria has channelled about N2.7 trillion into procurement from Nigerian suppliers over the past nine years, with local vendors accounting for 62 per cent of the telecommunications company’s procurement spending, the company’s Chief Financial Officer and Executive Director, Modupe Kadri, has disclosed.
Kadri, however, said the bigger challenge for Nigeria was to ensure that local procurement translates into sustainable businesses, technology transfer, skilled manpower and globally competitive indigenous enterprises, rather than merely increasing the percentage of contracts awarded to local companies.
He spoke in Lagos at a breakfast meeting organised by the Nigerian-South African Chamber of Commerce (NSACC), themed “Building Local Content Together: 25 Years of Shared Growth,” held as MTN Nigeria marked 25 years of operations in the country.
According to him, MTN’s share of procurement spending going to Nigerian suppliers increased from 59.6 per cent in 2024 to 62 per cent, reflecting growing participation by domestic businesses in its supply chain.
Kadri said the figures should be viewed against the company’s broader investments in Nigeria, arguing that the economic value of telecommunications extended beyond the infrastructure owned and operated by telecom companies.
“Local procurement tells us where money was spent, but local content should tell us what spending left behind,” he said.
He challenged businesses and policymakers to assess whether local suppliers become stronger after executing contracts, acquire new skills, improve governance and delivery standards, invest in technology and become capable of winning business beyond their relationship with MTN.
“If the answer is yes, then procurement has become local content. And if the answer is no, then we may be spending money locally without necessarily building capability,” he said.
Kadri described local content as a “conversion mechanism” that should convert spending into capability, capability into enterprise, and enterprise into jobs and wealth.
He said the ultimate objective should not be to create suppliers permanently dependent on large corporations or government protection, but to develop Nigerian companies capable of competing across Africa and international markets.
“The goal is not supply dependency. The goal is supply competitiveness,” he said.
According to him, large corporations have a responsibility to provide market access, transfer knowledge and create pathways for credible Nigerian suppliers to scale, while local businesses must reciprocate by investing in governance, quality, technology, people and innovation.
“The goal is not to create vendors that need MTN. The goal is not protection from global competition. The goal is preparation for global competition,” he said.
Kadri said this approach was particularly important as Nigeria seeks to deepen local participation in strategic sectors and reduce its dependence on imported technology and expertise
He noted that many of MTN’s technology requirements, which were initially supplied by foreign contractors, are now being handled by Nigerian companies.
The CFO also linked local-content development to MTN’s continuing capital investment in Nigeria.
He said the company invested N620.5 billion in capital expenditure in the first half of 2026, following approximately N1.003 trillion in 2025, bringing its capital expenditure over the 18-month period to about N1.63 trillion.
The investments, he said, were targeted at expanding network capacity, fibre infrastructure, new sites and data-centre facilities.
Kadri said MTN’s 25-year journey illustrated how telecommunications investment could create an ecosystem of businesses, professionals and entrepreneurs beyond the immediate operations of a telecom company.
He recalled that when MTN entered Nigeria in 2001, the country had only about 400,000 telephone lines for a population of roughly 100 million.
Today, MTN has 92.2 million subscribers, while active data users stood at 55.7 million as of June 2026. Its network has also grown to more than 43,000 kilometres of fibre, according to figures presented by the company.
But Kadri said the more important measure was what Nigerians were doing with the infrastructure.
“MTN’s greatest contribution to Nigeria is not only the network we built; it is what Nigerians have been able to build because the network exists,” he said.
He explained that a telecommunications connection could support a retail outlet, payment agent, classroom, clinic, content creator or small business, making connectivity an important component of economic infrastructure.
Kadri said the next phase of local content in telecommunications must move beyond traditional areas such as network rollout, civil works, distribution, logistics and operational support.
He identified artificial intelligence, cloud computing, data centres, 5G, cybersecurity, software development and data sovereignty as emerging areas where Nigerian businesses could develop deeper capabilities.
The central question, he said, was whether Nigeria could move from being a market for technology to becoming a producer and exporter of technology to other African countries.
“I believe the answer is yes, because I’ve seen the capability of what Nigerians can do,” he said.
He, however, identified deliberate government policy, patient capital, corporate access, skills development, quality education and increased private-sector investment as necessary conditions for achieving that transition.
He acknowledged that some specialised telecommunications equipment and technologies could not yet be produced locally at competitive scale, but said the gaps should be viewed as opportunities for investment and entrepreneurship.
“The next phase is not only about who owns the infrastructure; who owns the software, who builds the AI, who owns it?” he asked.
Kadri also said local-content policy should not be allowed to become a justification for lower standards or entitlement.
“Local content must not mean lower standards. It must not mean entitlement that only because there is a government policy, anything works,” he said.
Beyond procurement and capital expenditure, Kadri said MTN’s economic contribution included taxes, employment, share ownership and the development of professional capacity.
MTN Nigeria paid N878.7 billion in taxes, levies and duties to federal and state authorities in 2025, according to the company’s sustainability report.
Kadri said these payments, alongside infrastructure investment and local procurement, demonstrated that shared growth should be treated as a core business strategy rather than corporate philanthropy.
“Shared growth is not charity. It is not public relations. It is enlightened business logic,” he said.
He added that the company’s long-term sustainability was inseparable from the strength of the Nigerian economy.
“Our customers are Nigerians. Our employees are Nigerians. Our suppliers are Nigerians. Our shareholders include Nigerian individuals and institutions. Our network is also embedded in Nigerian communities,” he said.
The Chairman of the Nigerian-South African Chamber of Commerce, Ije Jidenma, said the next phase of economic relations between Nigeria and South Africa should move beyond traditional trade and investment towards deeper partnerships in technology, skills, local supply chains and African-owned businesses.
Jidenma said MTN’s 25-year presence in Nigeria provided an opportunity to examine how foreign investment could generate local capacity and broader economic value.
She noted that 99.85 per cent of MTN Nigeria’s workforce is Nigerian, while the company has said its activities through trade partners and agents have created more than two million direct and indirect jobs.
“Local content is about building sustainable Nigerian capacity. It is about developing talent, strengthening local businesses, transferring knowledge and technology, expanding local supply chains and creating meaningful employment opportunities,” she said.
She also highlighted the MTN Foundation’s social investments, saying it had invested more than N34.4 billion, implemented over 1,093 projects and reached 3,110 communities across Nigeria and the Federal Capital Territory.
Jidenma said Nigeria and South Africa should leverage their commercial strengths to build regional value chains rather than merely expand the continent’s role as a market for foreign goods and technology.
She also raised concerns about migration-related tensions and the treatment of Nigerians in South Africa, saying such issues should not be allowed to undermine the wider commercial relationship.
She said the Federal Government had brought back 419 Nigerians on five commercial flights since June 10, describing the development as evidence of the need for stronger engagement among governments and business leaders.
Looking ahead, Jidenma said Africa must seek to become a creator and owner of technology rather than predominantly a consumer.
“As we celebrate MTN’s 25th anniversary, let us look ahead to the next 25 years a period that will be shaped by digital technology, innovation, artificial intelligence, entrepreneurship and new forms of economic collaboration,” she said.
She urged businesses to turn discussions on local content into concrete partnerships capable of strengthening African supply chains, expanding technology ownership and creating sustainable economic opportunities.