“MTN Faces $72.6 Million Tax Ruling in Nigeria Amidst Growing Tax Disputes for African Telecom Giants”

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The Lagos-based Tax Appeal Tribunal has issued a directive for MTN to remit $72.6 million, as per documents reviewed by Bloomberg and authenticated by two government sources. Bloomberg’s attempts to reach the tribunal for comment went unanswered.

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MTN, in response to the matter, has stated, “We are currently assessing the tribunal’s decision and will provide a statement as part of our trading update on October 27.”

This development is part of a growing trend where Africa’s major mobile operators are encountering tax-related disputes across the continent. In 2020, MTN resolved a contentious issue with the Nigerian government, which withdrew a $2 billion back-tax claim after a lengthy 16-month battle. More recently, Ghana dropped a $773 million back-tax claim against MTN, and in the Democratic Republic of Congo, Vodacom Group Ltd. found itself embroiled in a tax dispute that led to the sealing of its offices and freezing of its bank accounts.

Last week, six telecommunications CEOs, including MTN’s Ralph Mupita and Vodacom’s Shameel Joosub, called upon African leaders and policymakers to “rationalize” taxation for the mobile industry through the implementation of targeted fiscal policy reforms. These reforms may include the elimination of taxes on low-cost smartphones and sector-specific taxation, as outlined in an agreement signed in Rwanda.

Nigeria remains MTN’s most significant market in terms of subscribers, and MTN Nigeria Communications Ltd., listed in Lagos, contributes more than a third of the group’s total revenue.

Gbenga Samson
Gbenga Samsonhttp://ThisDayLive.com
Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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