MTN remits N879bn taxes amid revenue, profit growth

As Nigeria ramps up efforts to diversify its revenue sources beyond oil and enhance tax collection as part of its fiscal reform plan, tax contributions from significant private sector players are becoming increasingly vital for government funding.

In line with this initiative, MTN Nigeria contributed N878.7 billion in taxes, levies, and duties to both federal and state governments in the 2025 fiscal year, reflecting a 15 percent rise compared to the previous year, as reported in the company’s newly issued 2025 Sustainability Report.

The trajectory indicates that the company remitted N543.9 billion in taxes and levies in 2023, which increased to N764 billion in 2024, marking a total increase of approximately 62 percent over the two-year span.

This growth coincided with the company's recovery from foreign exchange-related losses, resulting in a post-tax profit of N1.11 trillion in 2025, alongside a total revenue surge of 54.8 percent, reaching N5.20 trillion. Operating profit also grew from N778.2 billion to N2.08 trillion.

The N878.7 billion sent to the government in 2025 included payments for corporate income tax, value-added tax, spectrum fees, import duties, levies imposed by the Nigerian Communications Commission, and contributions under the Rural and Urban Terrestrial Infrastructure tax credit initiative.

Additionally, the company engaged in the Road Infrastructure Tax Credit Scheme, committing N202.8 billion for the refurbishment of the 110-kilometer Enugu-Onitsha Expressway.

According to the report, the Rural and Urban Terrestrial Infrastructure initiative achieved 50 percent completion in 2025 after receiving approval for an extra N23 billion tax credit intended to enhance fiber and telecommunications networks in areas with limited services.

The report also pointed out the company's expanding influence on the domestic economy, with 62 percent of procurement expenditures directed toward Nigerian suppliers in 2025, an increase from 59.6 percent in the prior year.

MTN noted that this strategy aligns with the local content goals of the Federal Government and bolsters sectors such as civil construction, logistics, software services, and power infrastructure.

The company’s operational presence grew to 2,087 active base stations across the country, while active mobile subscribers reached 85.4 million by the third quarter of 2025. The number of active data users increased to 51.1 million, backed by a smartphone penetration rate of 65.1 percent.

Throughout the year, MTN Nigeria renewed its 800MHz spectrum license for an additional decade, extending to December 2034.