MTN Group said it is reviewing a demand by a Nigerian tribunal for unpaid taxes. This comes after a Lagos-based Tax Appeal Tribunal ordered MTN to pay US$72.6-million (about R1.4-billion), according to documents verified by two government officials. Calls to the tribunal for comment weren’t answered.

“We are reviewing the decision of the tribunal and will comment on this when we release our trading statement” on 27 October, the company said on Wednesday in response to questions.

MTN Nigeria Communications contributes more than a third of the group’s total revenue.

This development follows continuing issues of tax disputes in many countries across Africa. MTN has a history of impasses in Nigeria and was victorious in a conflict in the West African nation in 2020, when the government dropped a $2-billion claim for back taxes after a 16-month battle.

More recently, Ghana had to abandon a $773-million back-tax bill against MTN that the company disputed.

In the Democratic Republic of Congo, its rival Vodacom Group has been embroiled in a tax demand that led the government to seal parts of its offices and freeze its bank accounts.

Last week, six telecommunications CEOs — including MTN’s Ralph Mupita and Vodacom’s Shameel Joosub — urged African leaders and policymakers to “rationalise” tax for the mobile industry through the development of targeted fiscal policy reforms, such as the removal of tax on low-cost smartphones and sector-specific tax, according to an agreement signed in Rwanda.

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Nigeria is MTN’s biggest market by subscribers and the Lagos-listed unit, MTN Nigeria Communications, contributes more than a third of the group’s total revenue. 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry