As the year draws to an end, MTN, Africa’s biggest telco, is making amends in dealing with financial institutions in Nigeria.
This has seen the telco picking up awards from entities with which it previously had a tumultuous relationship.
MTN this week bagged an award at the Nigerian Exchange Limited Made of Africa Awards, an event held in Lagos, which recognises companies and individuals within the capital market ecosystem that act as key drivers in strengthening the Nigerian capital markets.
In March, MTN was recognised by the Federal Inland Revenue Service (FIRS) as a top tax contributor, and on Tuesday, the Nigerian Stock Exchange named it as the most complaint listed company.
Since its entrance into Nigeria, MTN has faced a string of legal woes and accusations stemming from various Nigerian institutions, which weighed on the telco's reputation in its most lucrative market.
The telco has squabbled with various entities, including the Nigerian Economic and Financial Crimes Commission, FIRS and the Central Bank of Nigeria.
Nonetheless, MTN has now made inroads in mending relations, and the telco has received recognition from the same institutions it clashed with previously, signalling a new path in Nigeria.
MTN Nigeria CEO Karl Toriola says the award from the Nigerian Exchange “recognises the hard work our team has done over the last few years”.
He adds: “Compliance is at the heart of our business and embedded in the strategic priorities that underpin our Ambition 2025 strategy. Achieving this accolade early in that journey indicates we are on the right track.”
According to MTN, the award for legal and regulatory compliance from the Nigerian Exchange further demonstrates the telco’s track record of compliance and contribution to Nigeria’s tax revenue, which have both been recognised and acknowledged recently.
It says: “In March 2022, MTN Nigeria was recognised as one of the most tax-compliant organisations and a top 20 taxpayer in Nigeria by the FIRS. In November 2022, the FIRS appointed MTN Nigeria to withhold or collect value-added tax on its behalf, demonstrating its faith in the company.”
MTN Nigeria chief financial officer Modupe Kadri adds: “Since MTN Nigeria’s listing on the Nigerian Exchange in 2019, we have been very deliberate in the way we have approached our compliance with the rules and regulations of the exchange, which are designed to ensure the market operates credibly and transparently; two principles we believe are essential to the functioning of a world-class exchange.
“We hope that by continuing to demonstrate the highest levels of compliance, we can help bolster the reputation of the exchange.”
Nigeria is the top profit-making market for MTN Group, generating the lion’s share of the telco’s revenue.
In the current reporting period, MTN Nigeria service revenue was up by 22%, with an EBITDA margin of 54.6% (from 53.1%).
Fintech, MTN’s new cash cow, saw revenue rise by 46.7% on the back of the growing adoption of fintech services and an expanded user base.
MTN today covers over 89% of the Nigerian population, connecting over 74 million mobile subscribers, and facilitates over 7.5 billion naira financial transactions via USSD.
The telco is also a carrier of over 70 ISPs, serves over 7 100 businesses, including 740 corporates, and has created over 2.4 million direct and indirect employment through trade partners and agents.
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