By Prince Osuagwu,

As Nigeria pushes to diversify government revenues away from oil and strengthen fiscal sustainability, the telecommunications sector is increasingly emerging as one of the country’s most reliable contributors to public finances and economic growth.

Leading that charge is MTN Nigeria, which recently revealed it remitted a record N878.7 billion in taxes, levies and duties to federal and state governments in the 2025 financial year.

The remittance was a 15 per cent increase over the previous year, reinforcing that the sector is expanding its contribution to Nigeria’s Gross Domestic Product, GDP and national development.

The figure, disclosed in the company’s 2025 Sustainability Report, came in the same year MTN Nigeria rebounded strongly from a N399 billion loss recorded in 2024 to post a profit after tax of N1.11 trillion in 2025. The turnaround has sparked discussions around corporate profitability, but analysts note that the company’s tax payments, infrastructure investments and local economic impact demonstrate why the earnings are closely tied to value creation within the economy.

MTN’s tax trajectory reflects both business growth and increasing fiscal contributions. The company paid N543.9 billion in taxes and levies in 2023, rising to N764 billion in 2024 before reaching N878.7 billion in 2025. This represents a cumulative increase of about 62 per cent within two years.

The payments covered corporate income tax, value-added tax (VAT), spectrum fees, import duties, Nigerian Communications Commission (NCC) levies and contributions under the Rural and Urban Terrestrial Infrastructure (RUTI) tax credit scheme.

Industry experts argue that such contributions highlight the growing importance of telecommunications as a pillar of Nigeria’s economy. Beyond direct tax payments, telecom operators support economic productivity, digital commerce, financial inclusion and employment across multiple sectors.

MTN’s financial performance in 2025 reflected the scale of its operations. Revenue rose by 54.8 per cent to N5.20 trillion, while operating profit surged to N2.08 trillion from N778.2 billion recorded the previous year. The company served 85.4 million subscribers and 51.1 million active data users during the year, underlining the central role connectivity now plays in economic activity nationwide.

A significant portion of MTN’s contributions also extends beyond conventional taxation. Through the Federal Government’s tax credit framework, the company has continued to finance critical infrastructure projects. Under the Road Infrastructure Tax Credit Scheme, MTN committed N202.8 billion towards the reconstruction of the 110-kilometre Enugu-Onitsha Expressway.

Similarly, the company’s Rural and Urban Terrestrial Infrastructure (RUTI) initiative reached 50 per cent completion in 2025 after receiving approval for an additional N23 billion tax credit to expand fibre and telecommunications infrastructure in underserved communities. The model enables private capital to support national infrastructure development while reducing pressure on public finances.

MTN’s growing local economic footprint was equally evident in its procurement strategy. The company disclosed that 62 per cent of its procurement spending in 2025 was directed to Nigerian suppliers, up from 59.6 per cent in 2024. The spending supported local businesses operating in construction, logistics, software development, power infrastructure and other sectors linked to telecommunications.

The company also expanded its network infrastructure, operating 2,087 active base stations nationwide, while smartphone penetration among its subscribers reached 65.1 per cent.

Further strengthening its long-term investment outlook, MTN renewed its 800MHz spectrum licence for another ten years until December 2034 and secured approval to lease additional spectrum from T2 Mobile, formerly 9Mobile, across 17 states and the Federal Capital Territory.

For policymakers seeking sustainable revenue sources and stronger economic growth, MTN’s 2025 performance provides a clear illustration of how a thriving telecom sector can simultaneously generate corporate profits, expand digital access, create local economic opportunities and deliver substantial tax revenues to government coffers.

In that context, the company’s N1.11 trillion profit is not merely a reflection of improved business performance but also of its increasing contribution to Nigeria’s broader economic development and fiscal stability.