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Friday, March 31, 2023

So Far, MTN Has Paid N2.98trn in Taxes to Government

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MTN Nigeria Communications Limited has so far paid N2.98 trillion in taxes to the government as the company continues to meet obligations while taking advantage of the country’s young and growing population to expand its data revenues.

In 2018, the mobile operator was asked by the Nigerian government to pay a tax bill of $2 billion which it disputed, claiming it had settled the amount.

The company is committed to investing in its enterprise to accelerate the 4G network expansion, deepen population coverage and support the Federal Government’s broadband initiative.

It spent N2.68 trillion on capital expenditure to build critical infrastructures that support the development of technology needed to boost local economies.

MTN Nigeria is a value stock that has a low price compared to its profit margins, dividend, yields, and earnings.

During the first wave of the coronavirus pandemic, the telecommunications giant added 6.8 million new customers in the country, with more people using mobile technologies during the COVID-19 health crisis.

Analysts at cordros Securities and United Capital have placed Buy ratings on the stock, citing optimism that the gradual reopening of the economy will further propel earnings.

They added that over the medium to long term, the growth of Nigeria’s and MTNNs subscribers will continue to be underpinned by its attractive demographics as well as the structural upsides.

Aside delivering returns to its owners by way of share appreciation, it continues to reward them from distributable profit.

It paid a total of over N161 billion in dividends in 2019, representing N7.92 kobo per share.

However, the downside risk is that the refusal of the National Communication Commission (NCC) to extend the NIN registration deadlines could have a potential negative impact on the company’s first quarter (Q1-21).

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