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MTN Nigeria, the country’s largest telecommunications company, led by Chief Executive Officer Karl Toriola, has reported a N583.18 billion ($429.7 million) tax charge for the year ended Dec. 31, 2025, following the implementation of the Nigeria Tax Act 2025.
The figure represents a stellar reversal from the N149.89 billion ($110.22 million) tax credit recorded in 2024, revealing the structural impact of Nigeria’s fiscal overhaul under President Bola Ahmed Tinubu. The 2025 tax expense accounts for 34.38 per cent of the company’s net profit, reflecting a materially higher levy environment for large corporates operating in Africa’s largest economy.
Profit rebounds above $1 billion mark
Despite the elevated tax burden, MTN Nigeria delivered a strong earnings recovery in 2025.
Profit before tax rose sharply to N1.7 trillion ($1.25 billion), reversing a N550.33 billion pre-tax loss reported in 2024. The milestone marks the first time in the company’s history that pre-tax profit has exceeded the $1 billion threshold, signaling a decisive turnaround in performance.
Profit after tax climbed to N1.11 trillion ($819.25 million), compared with a N400.4 billion ($295.23 million) loss a year earlier.
Commenting on the results, Karl Toriola described 2025 as a defining year for the business, citing improved operational resilience and strengthened fundamentals despite the new fiscal environment.
Revenue climbs on data, fintech growth
Full-year revenue increased 54.9 percent to N5.2 trillion ($3.84 billion), up from N3.56 trillion ($2.48 billion) in 2024. Growth was increased by sustained momentum across data, voice, fintech, and digital services.
The subscriber base expanded 7.9 percent to 87.3 million, while active data users grew 11.6 percent to 53.2 million, reflecting continued demand for connectivity and digital financial services in Africa’s most populous nation.
Tax reform reshapes corporate landscape
Key provisions of the Nigeria Tax Act 2025 include a 4 percent Development Levy on assessable profits and a 15 percent minimum effective tax rate for companies meeting specified turnover thresholds.
The reform consolidates previously fragmented tax statutes into a unified framework governing compliance and taxable income, signaling a structurally higher tax environment for major corporations.
Dividend restored as balance sheet strengthens
Following its earnings rebound, the board proposed a final dividend of N15 per share, bringing total dividends for 2025 to N20 per share, establishing a return to shareholder payouts.
The company also reported restored retained earnings of N400.4 billion ($294.29 million) and shareholders’ equity of N548.7 billion ($403.5 million), highlighting strengthened fundamentals after a volatile prior year.
For MTN Nigeria under Toriola’s leadership, 2025 represents not only a return to profitability but also a recalibration to Nigeria’s new fiscal order one defined by higher statutory levies and consolidated tax governance.
