MTN Nigeria Communications Plc says it paid a staggering N764.2 billion in taxes and levies to the Nigerian government in 2024, a figure that towers over contributions from many key sectors of the economy and underscores a growing reliance on the telecoms industry as Nigeria’s primary fiscal lifeline.
The payment, detailed in the company’s 2024 Sustainability Report, marks a 40.5% increase from the N543.9 billion the company paid in 2023. While the telecom giant has routinely appeared among the top corporate taxpayers in the country, this surge in contribution in a year marked by rising inflation, currency devaluation, and dwindling oil revenues — underlines more than just corporate resilience. It reflects a deepening structural shift in Nigeria’s economic foundation.
Telecoms have quietly edged oil and gas in terms of consistency and reliability of fiscal remittances. For years, Nigeria’s economic lifeblood was crude oil. However, with crude exports plagued by theft, declining global demand, and OPEC quotas, the government has increasingly turned to telecom operators and financial institutions to fill revenue gaps.
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Among them, MTN has emerged as the standout performer. Its N764.2 billion tax contribution in 2024 not only sets a new record but places the company above some major oil producers operating in Nigeria — many of whom have been criticized for underreporting and evading full tax liabilities through complex fiscal arrangements and regulatory loopholes.
While some multinational oil firms and banks still contribute sizeable amounts, none has matched MTN’s transparency and upward trend. Even the Nigeria National Petroleum Company (NNPC) figures, though larger, are often shrouded in controversy and represent revenue from sales of state assets rather than pure taxation.
This explains why the telecom sector has increasingly become Nigeria’s economic cash cow. It’s a reputation many believe directly influenced the Nigerian Communications Commission’s (NCC) decision to approve a 50% hike in telecom tariffs earlier this year.
The rationale behind the increase, regulators said, was to help telecom firms manage rising operational costs. But sources familiar with the discussions say it also aligned with the government’s broader fiscal strategy — to squeeze more revenue from performing sectors while offsetting the collapse of oil-driven income.
MTN’s Strategic Expansion
Beyond fiscal contributions, MTN’s newly released sustainability report offers a broader view of the company’s activities in 2024. CEO Karl Toriola emphasized that MTN’s growth was anchored on a framework of long-term value creation.
“We have increased female representation in our workforce to 41.4%, empowered local businesses by directing 59.6% of our spend to local suppliers, contributed N764 billion in taxes and levies to support national development, and invested N3.5 billion in Corporate Social Investment initiatives, positively impacting over 663,300 lives,” Toriola said.
“These efforts reflect our unwavering dedication to long-term value creation and building a more connected, sustainable future,” he added.
The company also claimed to have achieved 93% network coverage across Nigeria and reduced its Scope 1 and 2 carbon emissions by 11% from its 2021 baseline, a significant feat in an industry with a heavy environmental footprint.
Other notable initiatives include:
- 194 new solar-powered rural sites, enhancing connectivity and reducing dependence on diesel generators.
- Eco-friendly SIM card launch, making MTN the first telecom operator in West Africa to take this step.
- A 159% jump in capital expenditure (CAPEX) in Q1 2025, with ?202.4 billion invested to expand network capacity.
MTN’s Profit Turnaround
MTN’s profitability in early 2025 marked a significant turnaround after a string of quarterly losses brought on by the naira’s free fall and inflationary shocks. A major driver of this rebound was the tariff increase approved by the NCC, a controversial but, in hindsight, an effective measure that allowed the company to recoup escalating operating costs — including diesel, FX costs, and hardware imports.
The regulatory decision drew mixed reactions. Consumer advocates criticized it as tone-deaf amid widespread economic hardship.
In the report, MTN also highlighted its continued investment in grassroots development through the MTN Foundation. According to Tobe Okigbo, Chief Corporate Services & Sustainability Officer, the company’s flagship program “What Can We Do Together” has transformed community infrastructure in health, education, and water access across hundreds of towns since its inception in 2015.
“Since its launch in September 2015, this initiative has transformed lives and contributed to grassroot development across Nigeria,” Okigbo added.