MTN says it paid N543.9 billion tax to Nigerian authorities in 2023

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MTN Nigeria Communication Plc mentioned it paid the sum of N543.9 billion in taxes and levies to the Nigerian authorities in 2023.

The corporate disclosed this in its 2023 sustainability report launched over the weekend, which highlights its Environmental, Social, and Governance (ESG) practices. As well as, MTN mentioned it was capable of broaden its community protection to cowl 92.9% of the nation’s panorama.

The expertise firm added that it additionally elevated its funding in capital expenditure by 13.2% to N571 billion in 2023.

Per the corporate’s {financial} outcome, MTN Nigeria posted N2.46 trillion as income for the total 12 months 2023. Nevertheless, it recorded a loss after tax of N137 billion pushed by web foreign exchange losses.

What the corporate is saying

In a submitting with the NGX, MTN’s CEO, Karl Toriola, mentioned the corporate’s Sustainability Report, highlights the corporate’s dedication to creating shared worth for all its stakeholders.

“We’re pleased with the progress now we have made to this point, increasing connectivity to 79.7 million folks, attaining 92.9 p.c nationwide protection, and investing N2.6 billion in company social funding applications which have impacted over 58,000 lives via the MTN Basis, contributing N549.3 billion in taxes and levies to the federal government and investing N571.0 billion in capex, up 13.2% in 2023” Toriola acknowledged.

Toriola added that MTN’s sustainability technique revolves round 4 ideas of eco-responsibility, sustainable societies, sound governance, and {economic} value-added.

In line with him, MTN’s 4G protection grew by 2.4 share level from 79.1% in 2022 to 81.5% in 2023, whereas 5G protection grew by 8.1 share factors from 3.2% in 2022 to 11.3% in 2023. With this, Toriola mentioned the corporate has elevated its share of the market share to 52.1% in 2023 from 50.8% in 2022.

“We’re main within the provision of connectivity and entry to thousands and thousands of Nigerians. Our efforts on {financial} inclusion in Nigeria have additionally been profitable. By means of our fintech enterprise, we serve over 14.5 million prospects in all of the native governments throughout the nation,” he mentioned.

What you must know

Whereas MTN was capable of improve its capex by 13.2% in 2023 to broaden 4G and 5G networks, the corporate in addition to different telecom operators is at the moment battling with a major drop within the worth of the Naira between final December and now, which can have an effect on their additional funding this 12 months.

  • Primarily based on this actuality, the Chief {Financial} Officer of MTN, Mr. Modupe Kadri, not too long ago instructed Nairametrics that the corporate now has much less cash to spend money on infrastructure as the continuing foreign exchange disaster within the nation has eroded the worth of its capital spending which is mounted in Naira.
  • In line with him, the devaluation of the Naira is impacting all telecom operators as most of their expenditures are in {dollars} whereas they earn in Naira.
  • “Now, it’s a matter of reducing your coat in response to your garments. We’re in an uncommon time. From a governance perspective, our CAPEX is mounted in Naira, so with the devaluation of the Naira it does imply that you’re going to get fewer {dollars} to spend.
  • Two main telecommunications operators within the nation, MTN and Airtel recorded vital foreign exchange loss within the 2023 {financial} 12 months.

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