MTN Nigeria’s latest dividend puts $41 million in government revenue

MTN Nigeria is set to pay shareholders ₦545.89 billion ($406.37 million) in dividends, with the Nigerian government due to collect about ₦54.59 billion ($40.64 million) from the payout. The dividend of ₦26 per share was approved by MTN Nigeria’s board in July, with payment scheduled for September 7. The government’s share comes through the 10% withholding tax charged on dividends in Nigeria. This means investors will receive ₦23.40 for every MTN Nigeria share they own after tax, rather than the full ₦26 announced by the company. For someone holding 1,000 shares, the gross dividend is ₦26,000. After the ₦2,600 tax deduction, the amount paid to the investor will be ₦23,400. For MTN Nigeria, however, the tax adds up to a much larger number.

A bigger dividend after a difficult period

The latest payout is another sign of how much MTN Nigeria’s financial position has changed over the past two years. The company returned to dividend payments in 2025 after restoring positive retained earnings and shareholders’ equity. It paid an interim dividend of ₦5 per share in October 2025 and later proposed a final dividend of ₦15 per share. That brought the total dividend for the year to ₦20 per share. The latest interim payment of ₦26 per share is already higher than the full-year amount paid in 2025. MTN Nigeria’s results have improved sharply. Revenue increased to ₦2.99 trillion in the first half of 2026, up 25.9% from the same period last year. Profit after tax rose 70.6% to ₦707.54 billion. The company also spent ₦620.5 billion on capital expenditure during the period, as it continued investing in its network.

Most shareholders own a small piece

MTN Nigeria’s shareholder register shows how unevenly the dividend will be distributed. MTN International (Mauritius) Limited owns 73.39% of MTN Nigeria, or around 15.41 billion shares. That gives the majority shareholder a gross dividend of about ₦400.65 billion from the latest payout. After withholding tax, roughly ₦360.58 billion will remain. The situation is very different for the company’s retail investors. More than 336,000 shareholders collectively hold about 137.77 million shares. Their combined dividend entitlement is approximately ₦3.58 billion before tax. After withholding tax, they will receive around ₦3.22 billion. So while smaller investors make up most of MTN Nigeria’s shareholder base, they own only a small portion of the company.

Government gets paid before shareholders

The ₦54.59 billion withholding tax makes the Nigerian government one of the biggest beneficiaries of the dividend. It is also a relatively easy collection for the government because the tax is deducted before the dividend reaches shareholders. The payment comes on top of the taxes MTN Nigeria already pays on its operations. The company reported paying ₦384.05 billion in taxes during the first half of 2026. That puts the latest dividend in a wider picture for Nigeria’s government, which is trying to raise more revenue from profitable businesses as it looks beyond traditional sources of income. For MTN Nigeria shareholders, the immediate benefit is a larger dividend following the company’s return to profitability. For the government, the same payout brings in another ₦54.59 billion without owning a single MTN Nigeria share.