MTN Nigeria pays N878.7bn in taxes as revenue and profit surge in 2025

MTN Nigeria Communications Plc has remitted N878.7 billion in taxes, levies and duties to federal and state authorities for the 2025 financial year, underscoring the growing role of the telecommunications sector in Nigeria’s non-oil revenue drive as the Federal Government intensifies fiscal reforms.

The figure, disclosed in the company’s 2025 Sustainability Report, represents a 15 per cent increase from the N764 billion paid in 2024. It also reflects a sustained upward trend in contributions, rising from N543.9 billion in 2023, an overall growth of about 62 per cent over two years.

The telecoms operator said the remittances highlight its expanding economic footprint amid stronger financial performance and a broader recovery from previous macroeconomic pressures.

Strong turnaround in earnings

MTN Nigeria’s tax contributions come alongside a sharp financial rebound, after earlier periods impacted by significant foreign exchange losses. The company moved from a net loss of N399 billion to a profit after tax of N1.11 trillion.

Revenue rose by 54.8 per cent to N5.20 trillion, driven by increased data consumption, growth in digital services and tariff adjustments. Operating profit also climbed significantly to N2.08 trillion, up from N778.2 billion in the previous year.

Financial analysts say the performance reflects the company’s operational resilience, with sustained investment translating into stronger revenue generation and a firmer contribution to public finances.

Breakdown of tax and statutory payments

The total N878.7 billion remittance includes company income tax, value-added tax, import duties and customs levies, spectrum fees paid to the federal government, and annual operating levies to the Nigerian Communications Commission (NCC).

Beyond standard taxation, MTN Nigeria also participated in public infrastructure financing schemes. Under the Federal Government’s Road Infrastructure Tax Credit Scheme, the company committed N202.8 billion to the reconstruction of the 110-kilometre Enugu-Onitsha Expressway.

It also advanced its Rural and Urban Terrestrial Infrastructure (RUTI) tax credit programme, which has reached 50 per cent completion. The initiative, supported by an additional N23 billion tax credit, is aimed at expanding fibre-optic and telecommunications infrastructure to underserved and rural communities.

Local sourcing and digital expansion

The sustainability report also highlighted MTN Nigeria’s push for local economic participation, with 62 per cent of procurement spend directed to Nigerian suppliers, up from 59.6 per cent the previous year. The spending supports sectors including engineering, logistics, software development and power infrastructure.

Operationally, the company reported 85.4 million active mobile subscribers and 51.1 million active data users. Smartphone penetration on its network stood at 65.1 per cent, reflecting growing adoption of digital services such as mobile banking, e-commerce and online entertainment.

Spectrum strategy and long-term capacity

To strengthen network capacity, MTN Nigeria renewed its 800MHz spectrum licence for another 10 years, extending usage rights to December 2034. The company also secured approval to lease additional spectrum from T2 Mobile (formerly 9mobile) across 17 states and the Federal Capital Territory, a move aimed at improving coverage and easing network congestion.

As Nigeria continues to rely on non-oil sectors to support public finances, industry observers say telecommunications has become a central pillar of economic growth. MTN Nigeria’s latest tax remittance further reflects the sector’s expanding role in driving both digital transformation and government revenue.