Nigeria’s largest listed companies are spending heavily on property, plant and equipment (PPE), underscoring a strategic push to defend operations against inflation, currency volatility and infrastructure bottlenecks, amid improving earnings.
Data compiled from NGX filings show that a handful of corporates accounted for the bulk of PPE spending as of September 2025, with telecoms, cement makers, oil producers and banks leading the charge.
MTN Nigeria Communications Plc topped the list with N539.6 billion in PPE as at nine months of 2025, up nearly 59 percent from full-year 2024, reflecting sustained investments in network expansion, fibre rollout and data capacity to support surging demand.
The spending surge highlights a broader corporate recalibration in Africa’s most populous economy, where inflation remains within double digits, the naira has lost significant value since the exchange-rate liberalisation of 2023, and firms are increasingly internalising costs that were once absorbed by public infrastructure.
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MTN’s PPE jump from N339.9 billion in FY 2024 to N539.6 billion in 9M 2025 is the most striking among the selected firms. The telecoms giant has been ramping up capital expenditure to improve network quality, reduce congestion and support data-driven revenue growth, which has become critical as voice revenues plateau.
Analysts say the scale of MTN’s investment reflects both opportunity and necessity. Nigeria’s mobile data consumption continues to grow at double-digit rates, but operators are contending with rising energy costs, frequent equipment imports priced in dollars and regulatory pressure to improve service quality.
“Telecoms are effectively forced to over-invest,” said one Lagos-based equity analyst. “If you don’t spend, churn rises quickly. But the returns are increasingly long-dated, especially with tariffs lagging inflation.”
Dangote Cement Plc followed closely, with a PPE of N461.8 billion as of September 2025, up from N423.0 billion in FY 2024. The cement maker’s spending underscores its long-term bet on Nigeria’s infrastructure deficit, even as public capital expenditure remains weak.
Cement producers have been upgrading plants, expanding alternative fuel capacity and investing in logistics to cut energy costs and mitigate supply chain disruptions. The capital-intensive nature of the sector means PPE growth is often less discretionary than in consumer-facing industries.
However, the slower pace of increase relative to MTN suggests a more cautious stance, shaped by softer construction demand, government arrears and price sensitivity in the housing market.
Seplat Energy Plc, Nigeria’s leading listed upstream oil and gas producer, posted PPE of N156.5 billion in 9M 2025, up sharply from N95.0 billion in FY 2024—a near 65 percent increase. The rise reflects investment in production optimisation, gas infrastructure and asset integrity, as the company seeks to stabilise output amid theft, pipeline vandalism and regulatory uncertainty.
The rebound in spending comes despite volatile oil prices and rising operational risks in the Niger Delta. For upstream firms, under-investment can quickly translate into production declines, making PPE spending a strategic imperative rather than a growth option.
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In contrast, consumer goods companies present a more uneven picture. Nigerian Breweries Plc recorded PPE of N116.5 billion in 9M 2025, down from N136.5 billion in FY 2024, a decline of about 15 percent. The pullback suggests a more defensive posture as brewers grapple with weak consumer purchasing power, rising input costs and intense competition.
Similarly, Guinness Nigeria Plc posted PPE of N103.4 billion, compared with N128.3 billion in the prior year, reflecting scaled-back expansion plans and a focus on cost optimisation.
“These companies are in survival mode,” said a consumer sector analyst. “With real incomes compressed, it’s harder to justify aggressive capacity expansion when utilisation rates are already under pressure.”
The banking sector’s PPE numbers reveal a sharp divergence in strategy. Access Holdings Plc reported PPE of N100.3 billion as of September 2025, far below its N260.8 billion figure in FY 2024, indicating a sharp slowdown in physical asset accumulation. The decline likely reflects the completion of major technology and infrastructure upgrades in previous periods, as well as a shift toward asset-light digital banking models.
United Bank for Africa Plc also showed moderation, with PPE of N91.8 billion versus N103.0 billion in 2024. Fidelity Bank Plc, however, moved in the opposite direction, increasing PPE to N87.2 billion from N38.5 billion—a jump of over 120 percent.
The contrast highlights how tier-two banks are investing aggressively to scale operations, improve digital platforms and compete with larger peers, while systemically important banks focus on sweating existing assets and preserving capital amid regulatory tightening.
Some of the largest percentage increases came from companies with relatively smaller absolute PPE bases. Oando Plc, for instance, posted PPE of N74.9 billion in 9M 2025, up from just N18.5 billion in FY 2024—a more than 300 percent surge. The jump reflects asset acquisitions and renewed investment following corporate restructuring and improved access to capital.
While the absolute numbers pale in comparison to MTN or Dangote Cement, the growth rate signals renewed confidence in the oil marketer’s long-term prospects, particularly in upstream and trading operations.
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Underlying the PPE story is Nigeria’s challenging macroeconomic environment. High inflation has made asset replacement significantly more expensive, prompting companies to front-load investments before costs rise further. Currency depreciation has also increased the naira value of imported machinery, inflating PPE figures even where real investment volumes have not risen dramatically.
For some firms, PPE growth partly reflects FX translation effects rather than greenfield expansion. Still, the willingness to commit capital in such an environment signals management confidence or at least resignation that postponing investment could be costlier in the long run.
The critical question for investors is whether these heavy investments will translate into higher returns. With interest rates elevated and consumer demand fragile, the payback period on large capital projects is lengthening.
Telecoms and energy firms appear best positioned to monetise their investments, given structural demand growth and export-linked revenues. Consumer goods makers and banks face a tougher road, as margins remain squeezed and regulatory risks persist.
“Capex alone doesn’t create value,” said one portfolio manager in Lagos. “What matters is pricing power, utilisation and cost discipline. Nigeria is forcing companies to spend more just to stand still.”
Taken together, the PPE data paints a picture of resilience rather than exuberance. Nigerian corporates are not expanding recklessly; they are investing to protect market share, ensure operational continuity and position themselves for an eventual macroeconomic stabilisation.
In a country where public infrastructure remains weak, private capital spending has become a substitute for state investment. For now, Nigeria’s biggest companies appear willing to shoulder that burden, betting that scale, efficiency and patience will ultimately pay off.