MTN pays N1.7trn as taxes, levies, regulatory fees in 18 years

MTN Nigeria Communications plc says it has, since incorporation in 2001, invested more than N2 trillion into the Nigerian economy and paid more than N1.7 trillion in taxes, levies and other regulatory fees.

The telco, reacting to media reports (not Businessday) regarding the status of taxes relating to the 2015 fine imposed on MTN Nigeria Communications, states that it is committed to meeting its fiscal responsibilities and contributing to the social and economic development of Nigeria.

In a recent notice at the Nigerian Stock Exchange (NSE) signed by its company secretary, Uto Ukpanah, MTNN acknowledged that there was

a technical disagreement between Mt na nd the federal inland revenue Service (FIRS) “as to how the fine should be treated for tax purposes.

“However, while the monies have been paid to FIRS, we have taken the disagreement to the Tax Tribunal set up by FIRS Chairman and Minister of Finance, and are awaiting a decision”, MTNN told the NSE, adding that it remains fully compliant with nigerian tax laws and“will abide by the findings of the tribunal.”

In the first-half (H1) period ended June 30, 2019, MTNN sustained a solid performance, delivering double-digit growth in service revenue, underpinned by growth in voice and data revenue.

Its audited result for the H1’19 period shows service revenue increased by 12.12 percent to N566.946 billion fro mn 505.667 billion in the preceding half-year (H1) period in 2018.

MTNN added 3.3million customers to its network, increasing its subscriber base to 61.5 million. It recorded 11.4 percent increase invoice revenue; while data revenue was up by 31.7percent in H1’19.

Fintech revenue increased by 21.2 percent; digital revenue decreased by 64.5percent; capital expenses (capex) increased by 63.8 percent to N105.8billion; Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 40 percent to N304.9billion; while EBITDA margin increased by 10.7 percentage points to 53.8percent. MTNN increased its Mobile Subscriber base by 3.3million to 61.5million in H1’2019.