MTN Nigeria tax bill 2025

MTN Nigeria, the country’s largest telecom operator, led by Karl Toriola, has reported a N583.18 billion ($429.7 million) tax charge for the year ended Dec. 31, 2025, following the implementation of the Nigeria Tax Act 2025.

The figure marks a sharp reversal from the $110.22 million tax credit recorded in 2024 and reflects the structural impact of Nigeria’s sweeping fiscal overhaul. Despite the higher tax burden, Africa’s largest telecom market operator returned to profitability, posting N1.11 trillion ($819.25 million) in profit after tax as revenue surged 54.9%.

Nigeria Tax Act impact deepens
The charge, equivalent to 34.38% of MTN Nigeria’s net profit, marks a sharp reversal from the N149.89 billion ($110.22 million) tax credit recorded in 2024, highlighting a structural shift in Nigeria’s fiscal regime under President Bola Ahmed Tinubu.

Profit before tax at MTN Nigeria surged to N1.7 trillion ($1.25 billion) in 2025, reversing a N550.33 billion pre-tax loss in 2024. The performance marks the first time in the company’s history that pre-tax profit has exceeded the $1 billion threshold, underscoring a decisive rebound in earnings momentum.

Despite the elevated tax burden, MTN Nigeria returned to profitability, posting N1.11 trillion ($819.25 million) in profit after tax compared with a N400.4 billion ($295.23 million) loss a year earlier.

Revenue surges on data, fintech growth
Full-year revenue climbed 54.9% to N5.2 trillion ($3.84 billion), up from N3.56 trillion ($2.48 billion) in 2024. Growth was driven by strong commercial execution across data, voice, fintech and digital services.

The company’s subscriber base rose 7.9% to 87.3 million, while active data users increased 11.6% to 53.2 million, reflecting sustained demand for connectivity in Africa’s most populous nation.

Nigeria Tax Act reshapes corporate levies
Key provisions affecting MTN Nigeria include a new 4% Development Levy on assessable profits and a 15% minimum effective tax rate for companies meeting turnover thresholds.

The reform consolidates previously fragmented tax statutes into a unified framework governing compliance and taxable income. The changes signal a structurally higher tax environment for large corporates.

Dividend restored as balance sheet strengthens
Following its earnings recovery, the board proposed a final dividend of N15 per share, bringing the total 2025 dividend to N20 per share, marking a return to shareholder payouts.

Chief Executive Officer Karl Toriola described 2025 as a turning point, citing restored retained earnings of N400.4 billion ($294.29 million) and shareholders’ equity of N548.7 billion ($403.5 million).

For MTN Nigeria, the year marks not only an operational turnaround but a recalibration to Nigeria’s new fiscal order.