Nigeria’s push to expand non-oil revenue received a major boost from the telecommunications sector in 2025, with MTN Nigeria remitting N878.7 billion in taxes, levies and duties to federal and state authorities, underscoring the growing role of large corporates in financing government expenditure amid ongoing fiscal reforms.
The payment, disclosed in the company’s 2025 Sustainability Report, represented a 15 percent increase from the N764 billion paid in 2024 and a sharp rise from N543.9 billion in 2023, highlighting the scale of the telecom operator’s expanding contribution to public revenue.
The figures come at a time when the Federal Government is intensifying efforts to improve tax collection and reduce dependence on oil earnings, with policymakers increasingly relying on the formal private sector to support public finances.
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MTN Nigeria’s stronger tax contribution also mirrored a dramatic turnaround in its financial performance after the company battled severe foreign exchange losses in recent years. The telecom operator swung from a N399 billion loss to a profit after tax of N1.11 trillion in 2025, supported by robust growth in data demand, digital services and tariff adjustments.
Its total revenue climbed 54.8 percent to N5.20 trillion during the year, while operating profit rose sharply to N2.08 trillion from N778.2 billion recorded previously.
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The N878.7 billion paid to government covered company income tax, value-added tax, spectrum fees, import duties, Nigerian Communications Commission levies and contributions under the Rural and Urban Terrestrial Infrastructure tax credit scheme.
The RUTI initiative forms part of the company’s broader public-private partnership strategy aimed at supporting infrastructure development while offsetting part of its tax obligations through approved capital projects.
MTN Nigeria has previously participated in the federal government’s Road Infrastructure Tax Credit Scheme, under which it committed M202.8 billion for the reconstruction of the 110-kilometre Enugu-Onitsha Expressway.
According to the sustainability report, the RUTI project reached 50 percent completion in 2025 after the company secured approval for an additional N23 billion tax credit to support fibre and telecoms infrastructure expansion in underserved communities.
The company said the model allows critical infrastructure to be delivered without direct government spending while helping to accelerate connectivity across parts of the country with limited digital access.
Beyond taxes, MTN Nigeria also expanded its local economic footprint during the year, with 62 percent of procurement spending directed to Nigerian suppliers, up from 59.6 percent in 2024.
The operator said the local sourcing policy aligns with the Federal Government’s local-content objectives and supports industries including civil construction, logistics, software services and power infrastructure.
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MTN Nigeria’s network expansion also continued during the year, with the company operating 2,087 active base stations nationwide. Active mobile subscribers stood at 85.4 million by the third quarter of 2025, while active data users rose to 51.1 million.
Smartphone penetration on its network reached 65.1 percent, reflecting rising digital adoption and growing consumer dependence on mobile internet services.
The telecom company also strengthened its spectrum position in 2025 after renewing its 800MHz spectrum licence for another ten years through December 2034.
In addition, it secured regulatory approval to lease additional spectrum from T2 Mobile, formerly known as 9Mobile, across 17 states and the Federal Capital Territory, a move expected to improve network capacity and service quality in key markets.
Industry analysts say the company’s rising tax payments illustrate how Nigeria’s telecom sector is becoming one of the country’s most significant non-oil revenue contributors, especially as digital services continue to expand across banking, commerce, education and entertainment.
The development also highlights the increasing intersection between telecom infrastructure investment and government fiscal strategy, with operators playing a larger role not only in connectivity expansion but also in public revenue mobilisation and infrastructure financing.