MTN Nigeria’s tax payments increase to N295.4bn in 9 months

MTN Nigeria Communications Plc paid N295.4 billion in income taxes in the nine months ended September 30, 2026, compared to N21.5 billion paid in the corresponding period of 2025.

The figure, disclosed in the telecommunications company’s unaudited financial statements, represents nearly 14 times the amount paid in the same period last year.

The increase in tax payments came amid improved financial performance, as the company’s profit before tax rose by 59.4% to N1.80 trillion from N1.13 trillion a year earlier.

MTN Nigeria’s income tax expense also increased by 67.6% to N630.5 billion, compared with N376.3 billion recorded in the corresponding period of 2025.

However, the N295.4 billion paid in cash was significantly lower than the N630.5 billion tax expense recognised in the income statement.

The difference reflects the distinction between tax expenses recognised against earnings during a reporting period and actual cash payments made to tax authorities.

Also, the telecommunications company’s effective tax rate increased to approximately 35.1% in the nine months to September 2026, compared with 33.4% in the corresponding period of 2025.

Revenue rises to N4.61 trillion as profit grows

The firm recorded a 59.4% increase in pre-tax profit to N1.80 trillion for the nine months ended September 30, 2026, from N1.13 trillion in the corresponding period of 2025.

For the third quarter alone, pre-tax profit increased by 39.6% to N704.1 billion from N504.2 billion in Q3 2025, as the telecommunications giant sustained its earnings growth.

The stronger revenue performance translated into higher profitability, with operating profit rising by 38.2% to N1.99 trillion from N1.44 trillion and profit after tax rising by 55.3% to N1.17 trillion from N750.19 billion, while earnings per share rose to N55.60 from N35.80.

Data revenue increased by 35.8% to N2.68 trillion from N1.98 trillion, accounting for 58.5% of total service revenue.

Voice revenue increased by 11.1% to N1.50 trillion from N1.35 trillion, while digital services revenue rose by 24% to N88.3 billion from N71.2 billion.

Other service revenue, which includes enterprise-related services, increased by 21.3% to N219.2 billion.

However, fintech revenue declined by 25.9% to N97.5 billion from N131.6 billion, reflecting the temporary suspension of the company’s airtime and data credit service between April and June 2026.

Management explained that the service resumed under a new multi-partner model, with revenue increasing by 78.5% in the third quarter compared with the preceding quarter.

Active data users also increased by 12% to 57.2 million, while average monthly data consumption per active user rose by 16.2% to 15.3GB.

The growth in usage contributed to a 30.1% increase in network data traffic, supported by greater smartphone adoption and demand for broadband services.

Commenting on the results, MTN Nigeria’s Chief Executive Officer, Karl Toriola, highlighted the company’s improved third-quarter performance and stronger operating margins.

“We delivered a very strong third quarter, reversing the temporary slowdown in Q2,” he said.

Toriola noted that service revenue growth accelerated during the quarter, supported by higher customer usage, increasing data adoption, and continued investment in network infrastructure. According to him,

“Growth is increasingly volume-led, driven by more users, deeper data adoption, higher usage and rising demand for home broadband, supported by continued investment in network coverage, capacity and quality.”

He also highlighted the group’s stronger financial position, noting that its borrowings were fully denominated in naira and carried fixed interest rates.

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