• Thu. Dec 1st, 2022

MTN Nigeria Paid N3.5 trillion in Taxes, Levies; N1 trillion More than N2.5 trillion Paid as Dividends in 20 Years

ByPeter Oluka

May 2, 2022
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MTN, the technology giant, paid 13.5% of total tax collection by Federal Inland Revenue (FIRS) in 2021.

Well, as you are adding one or two together, let’s quickly add that MTN Nigeria actual shareholders received dividends less than taxes the company paid in the last 20 years, TechEconomy.ng can report.

MTN Nigeria head office, Ikoyi Lagos
| MTN Nigeria head office, Ikoyi Lagos

MTN Nigeria made about N3.4 trillion investments since it obtained operating license from the Nigerian Communications Commission (NCC) and launched operations, in August 2001.

Karl Toriola, the Chief Executive MTN Nigeria disclosed the company’s investment portfolio during a presentation at the recent media launch of MTN Media Innovation Programme (MTN MIP) held at the Pan-Atlantic University, Lagos last week.

N3.5 trillion Taxes and Levies

From the investments in network infrastructure roll-out, and other physical projects, MTN generated enough money to pay the government of Nigeria about N3.5 trillion in taxes and levies.

Key highlights

·         Leading telecom operator with over 50% market share

·         Second largest listed company in Nigeria by market capitalization

·         Largest listed company by revenue

·         AAA rating by GCR

·         MTN Group plans to reduce its ownership in MTN Nigeria to 65% through a series of offers for sale.

MTN Group to stake part of its shareholding in MTN Nigeria
| L-R: Consul General, Abdul Malik M. Ahmed; Nigeria High Commissioner accredited to South Africa, Muhammad Haruna Manta, and Karl Olutokun Toriola, Chief Executive Officer, MTN Nigeria, at MTN Group headquarters in South Africa

N2.5 trillion in dividends

Also from the investment, MTN was able to pay the investors N2.5 trillion in dividends. This is a clear indication that MTN paid N1 trillion more than dividends paid to actual investors in the company.

More about MTN Nigeria — in Numbers

MTN which has metamorphosed from telecommunication to a technology company has steadily deployed its services across Nigeria.

Covers 223 Cities, 10,000 communities

It now provides services in 223 cities and towns, more than 10,000 villages and communities and a growing number of highways across the country, spanning the 36 states of Nigeria and the Federal Capital Territory, Abuja.

MTN Kiosk-as-a-service
| MTN Kiosk-as-a-service

70.2 million Subscribers

MTN as the leading mobile operator in Nigeria accounts for 70.2 million subscribers with 70.3% 4G population coverage; 82.5% on 3G and

Active data subscribers increased by 3.4 million to 35.9 million YoY in Q1 2022. It accounts for over 51% of the data penetration and 50% smartphone penetration.  

N23 billion in MTN Foundation

The company invested over N23 billion through MTN Foundation, supporting over 30 million people during the period under review.

MTN Foundation scholarship 2021 Photo 4
| MTN Foundation 2021 Scholars in a group photograph with Odunayo Sanya, the Executive Secretary, MTN Foundation.

N28 billion in Y’ello Help Initiative

Speaking further, he said that under its Y’ello Initiative, MTN committed over N28 billion to support the broad base of stakeholders.

Carrier to 70+ ISPs

The presentation also enabled stakeholders to appreciate that MTN as the carrier of carriers, covers over 70 per cent market share of the Internet Service Providers, carriers & ICT sellers in Nigeria with 30,000 kilometers of fibre optic backbone.

World Wide Web, Internet, ISPs
| ISP

MTN is also connecting 71,000 businesses including 740 corporates, 100+ of them in the public sector and 1,000,000 Small and medium enterprises.

174,500+ ATMs and PoS supported by MTN

MTN Nigeria has provided a backbone for electronic payments in the country.

PoS machine, digital payments
| PoS machine

As Toriola explained, the company supports financial infrastructure for over 174,500 Automated Teller Machines (ATMs) and Point of Sales (PoS) devices and powers the connectivity for 860 corporate branches and offices across Financial Services Industry (FSI), Fast-moving Consumer Goods (FCMGs) and O&S services.

9.4 Million MoMo Customers

Before securing the Central Bank of Nigeria (CBN’s) approval to operate Momo Payment Service Bank Limited (MoMo PSB), MTN had created alternative payment channels to 9.4 million active MoMo customers.

MTN Momo Agent
| MTN Momo Agent

Internet Service to 160 tertiary institutions

Over 160 universities, polytechnics, and colleges, both private and public, are provided with high capacity internet service by MTN.

Creating shared value

On the MTN network, over N4 trillion has been earned by vendors and suppliers; N860 billion earned by retailers and over N185 billion earned by content owners.

Also, the retailers have ballooned to 1.4 million and over 2000 sales and partner agents while local suppliers are more than 2,700.

The company is even spurring for more innovations through its Ambition 2025, the second brand overhaul since the MTN Group was founded in 1994.

Back in 2004, the changes made to the brand resulted in MTN taking ownership of the colour yellow that is now synonymous with MTN.

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