MTN Nigeria’s Tax Bill Rises to ₦376bn Amid Expanding Operations and Fiscal Adjustments

MTN Nigeria, one of the country’s largest telecommunications and digital service providers, has revealed that its total tax obligations soared to ₦376 billion in 2024, marking a substantial increase over the previous year. The surge in the tax bill, according to the company’s financial disclosures, reflects the impact of inflation, exchange rate volatility, and expanded operations across the telecom and fintech sectors.

The company, which remains Nigeria’s leading corporate taxpayer in the private sector, stated that the ₦376 billion comprises company income tax, value-added tax (VAT), education tax, and regulatory levies paid to multiple government agencies. MTN attributed the rise to its growing profitability and compliance with fiscal reforms implemented by the Federal Inland Revenue Service (FIRS) as part of broader efforts to strengthen national revenue collection.

In its financial report, MTN explained that it continues to make substantial contributions to Nigeria’s fiscal landscape despite macroeconomic challenges. The company said it had weathered persistent inflation, increased energy costs, and foreign exchange losses while maintaining significant investments in network expansion and digital transformation. “Our operations continue to make a substantial contribution to the Nigerian economy through taxes, investments, and employment creation. Despite the economic headwinds, we remain steadfast in meeting our obligations and driving sustainable growth,” MTN said.

The telecommunications giant, which serves over 80 million subscribers, has continued to diversify its portfolio beyond traditional voice and data services. Its fintech arm, MoMo Payment Service Bank, recorded strong growth in mobile money transactions, which boosted overall revenues and contributed to the higher tax assessment. Industry analysts suggest that the company’s expanded financial service offerings have become a major source of revenue, positioning MTN as not just a telecom operator but a key player in Nigeria’s evolving digital finance ecosystem.

Experts in the financial sector have interpreted the increased tax bill as evidence of both business growth and stricter enforcement by the FIRS. The agency, under its recent reforms, has intensified compliance monitoring among large corporations, particularly in telecoms, manufacturing, and oil and gas. The government’s drive to diversify its revenue sources away from oil dependency has led to the expansion of the tax base and closer scrutiny of multinational companies.

Economic analysts also point to the government’s ongoing tax reforms as part of President Bola Tinubu’s broader fiscal consolidation strategy. The Presidential Fiscal Policy and Tax Reform Committee, led by Taiwo Oyedele, has been working to simplify Nigeria’s complex tax structure and ensure fair contribution from profitable sectors. Telecom operators like MTN have become central to this effort due to their consistent profitability and strategic role in national development.

In addition to its tax obligations, MTN Nigeria said it had invested heavily in improving its network capacity and rural connectivity, with over ₦800 billion spent in infrastructure upgrades over the last two years. These investments, according to the firm, are aimed at bridging the digital divide, expanding broadband access, and supporting Nigeria’s ambition to achieve 70% broadband penetration by 2026. The company added that it remains focused on innovation in digital services, financial inclusion, and job creation.

Despite the positive revenue trajectory, MTN has not been immune to the harsh economic realities confronting businesses in Nigeria. The sharp depreciation of the naira, high energy prices, and inflationary pressure have increased operating costs, impacting the firm’s profit margins. Nevertheless, the company maintained that its financial health remains strong, bolstered by operational efficiency and sustained customer growth.

Commenting on MTN’s tax contribution, financial analyst Nnamdi Eze noted that the telecom sector remains a lifeline for Nigeria’s non-oil revenue growth. “MTN’s ₦376 billion tax payment underscores the vital role of the private sector in sustaining public finance. With FIRS’ ongoing reforms, we should expect even greater transparency and compliance from large corporations,” he said.

The Federal Government, through the Ministry of Finance, has repeatedly commended MTN and other large taxpayers for their commitment to national development. The FIRS Chairman, Zacch Adedeji, recently stated that the service was focused on digitising tax administration to ensure fairness and efficiency. He described MTN’s contribution as a benchmark for responsible corporate citizenship and called on other multinationals to emulate such compliance.

Meanwhile, consumer advocates have urged the government to ensure that rising tax obligations do not translate into higher service costs for consumers. They argue that the sector’s competitiveness should be maintained to support affordability and innovation, especially as the economy continues its recovery phase.

MTN has assured its customers and stakeholders that it will continue to prioritise quality service delivery while sustaining its commitment to fiscal responsibility. “We are proud to be a significant contributor to Nigeria’s economy and a partner in progress. Our focus remains on building a modern, inclusive digital future for all Nigerians,” the company said.

As the Nigerian government continues its reform agenda aimed at improving public revenue and reducing fiscal deficits, companies like MTN Nigeria are expected to play a crucial role in achieving those objectives. The firm’s growing tax contribution not only reflects its success in navigating economic challenges but also underscores the importance of a strong and transparent partnership between the public and private sectors in driving national development.