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Nigeria’s government is expected to receive about $40.64 million (₦54.6 billion) from MTN Nigeria’s $406.37 million (₦545.9 billion) dividend payout, as the telecom company returns a significant portion of its earnings to shareholders.
The dividend distribution reflects MTN Nigeria’s improved financial performance and provides an additional revenue stream for the Nigerian government through withholding tax.
₦545.9bn Dividend Declared
MTN Nigeria is set to distribute ₦545.9 billion to shareholders, equivalent to approximately $406.37 million.
Based on the applicable withholding tax, the Federal Government is expected to collect around ₦54.6 billion ($40.64 million) from the payout.
The tax proceeds will provide additional government revenue at a time when Nigeria continues to pursue stronger domestic revenue mobilisation.
Dividend Follows Stronger Financial Performance
The payout comes after MTN Nigeria staged a major turnaround in its financial performance.
The company returned to profitability after recording losses in the preceding period, supported by stronger revenue and improved operating performance.
For 2025, MTN Nigeria reported a significant increase in service revenue, while its profit after tax rebounded strongly. The company’s improved earnings position enabled it to resume substantial dividend payments to investors.
The latest distribution follows an earlier ₦419.91 billion dividend payout for 2025, highlighting the company’s return to shareholder distributions after its difficult financial period.
Government Benefits Through Withholding Tax
Although the Federal Government is not receiving the entire dividend directly as a shareholder distribution, it benefits from the payout through taxation.
The estimated ₦54.6 billion withholding-tax collection illustrates how the profitability of large listed companies can contribute to public revenue beyond corporate income taxes and other statutory payments.
For MTN Nigeria shareholders, meanwhile, the dividend provides a direct return from the company’s improved earnings.
MTN’s Recovery Strengthens Investor Returns
MTN Nigeria’s financial recovery has been driven by stronger telecommunications demand, particularly for data services, alongside improved operating conditions.
The company’s 2025 results showed service revenue rising by about 55%, while EBITDA more than doubled. Profit after tax reached approximately ₦1.11 trillion, reversing the substantial loss recorded in 2024.
The recovery has strengthened the company’s capacity to reward investors while continuing to fund network expansion and other strategic investments.
A Boost for the Nigerian Capital Market
The dividend also highlights the importance of major telecom companies to Nigeria’s capital market.
MTN Nigeria is one of the country’s largest listed companies, meaning substantial dividend distributions can have a significant impact on investors and government tax receipts.
With the company returning to profitability and maintaining shareholder distributions, the latest payout reinforces the broader recovery in its financial position.
For Nigeria, the ₦54.6 billion expected tax collection adds to government revenue, while for investors, the dividend provides evidence that MTN Nigeria’s turnaround is increasingly translating into shareholder returns.
