In the first half of 2026, MTN Nigeria made significant contributions to the Nigerian government's coffers, remitting N622.6 billion in taxes and levies. Interestingly, this figure is almost identical to the company's capital expenditure for the same period, which stood at N620.5 billion. This simultaneous investment in infrastructure and tax payment highlights the substantial role the telecom sector plays in Nigeria's economy.
The Nigerian telecom sector has been a significant contributor to the country's GDP, with the sector accounting for 9.72 per cent of Nigeria's real GDP in the second quarter of 2026. According to the National Bureau of Statistics, this makes it the country's fourth-largest economic contributor, behind crop production, trade, and real estate. In nominal terms, the broader Information and Communication sector generated N14.64 trillion in Q2 alone, representing 12.27 per cent of aggregate nominal GDP.
MTN Nigeria's financial performance in the first half of 2026 reflects the sector's growing importance. The company's revenue reached N2.99 trillion, with a profit before tax of N1.09 trillion. Its current tax liabilities climbed to N640.4 billion, up from N88 billion in the corresponding period of 2025. This significant increase in tax liabilities is a testament to the company's stronger earnings performance.
The company's tax contributions are not limited to direct taxes and levies. The board's approval of an interim dividend of N26 per share in July triggered an additional N54.59 billion in withholding tax for the government. When combined with the N622.6 billion in direct taxes and levies, MTN Nigeria's total fiscal contribution for the half-year becomes substantial.
Nigeria's tax-to-GDP ratio has historically been one of the lowest in the world. However, the Nigeria Revenue Service reports that it has improved to around 13 per cent, driven by four new tax reform laws that took effect on 1 January 2026. Collections in the first seven months of 2026 reached N27.1 trillion, already matching 96 per cent of the full-year figure for 2025. Non-oil revenue now accounts for 76 per cent of total collections, a significant shift from previous years.
The Nigerian Communications Commission (NCC) has noted significant progress in the deployment of mobile network coverage and capacity sites across the country. As of September 9, mobile network operators had deployed 8,526 out of 12,179 committed sites, a 70 per cent completion rate. This represents an increase of over 3,500 sites in roughly three and a half months, demonstrating the sector's commitment to infrastructure development.
Despite these advancements, the sector faces challenges, including fibre cuts and vandalism, which contribute to network disruptions. The NCC has called for stronger protection of critical communications infrastructure to mitigate these issues. The economics of this cycle are substantial, with every fibre cut costing money to repair, disrupting service for subscribers, and generating network quality complaints.
Key points
- MTN Nigeria contributed N622.6 billion in taxes and levies in the first six months of 2026.
- The telecom sector accounted for 9.72 per cent of Nigeria's real GDP in the second quarter of 2026.
- Nigeria's tax-to-GDP ratio has improved to around 13 per cent, driven by new tax reform laws.
