MTN Nigeria’s N7tn Tax Claim: But How Much Has It Made From Nigerians?

MTN Nigeria has disclosed that it has paid more than N7 trillion in taxes and statutory payments to the Nigerian government over the past 25 years, highlighting what it described as its significant contribution to the country’s economy.

The disclosure was made by the company’s finance executive at the monthly Nigerian-South African Chamber of Commerce breakfast meeting held at Eko Hotel, Lagos.

But while MTN Nigeria’s N7 trillion contribution may sound impressive, the disclosure raises an equally important question that Nigerians deserve answers to:

How much has MTN Nigeria made in Nigeria over the same 25 years?

If the company has paid more than N7 trillion to government, what has been its total revenue since commencing operations in Nigeria?

How much has MTN Nigeria made in profit?

How much has it paid its shareholders in dividends?

How much money has been transferred to its parent company and other foreign interests?

And how much of the billions generated from Nigerian subscribers every year has actually remained within the Nigerian economy?

These questions are particularly important at a time when Nigerians are facing rising telecommunications costs, expensive data and repeated increases in the cost of staying connected.

MTN Nigeria deserves recognition for its tax contributions and investments, but taxes and statutory payments are also part of the obligations of a corporation operating in a lucrative market.

Therefore, presenting the N7 trillion payment figure without putting it alongside the company’s cumulative revenue and profits gives Nigerians only one side of the financial story.

For 25 years, millions of Nigerians have spent money with MTN on voice calls, data, SMS and other services. The company has consequently built one of the biggest telecommunications businesses in the country.

So, before Nigerians applaud the N7 trillion figure, another figure deserves to be placed on the table.

How much has MTN Nigeria collected from Nigerians over those 25 years?

That is the number that would give the public a clearer picture of the relationship between what MTN has contributed to Nigeria and what it has earned from the Nigerian market.

MTN has told Nigerians how much it paid. Nigerians should now ask: how much did MTN make?