MTN completes exit from Guinea to focus on broader Ambition 2025 strategy
By Jeph Ajobaju, Chief Copy Editor
MTN, Nigeria’s largest telecom carrier, has completed its exit from Guinea, transferring its operations to the local operator to focus on markets with potential for greater portfolio optimisation and risk management.
The sale was finalised on 30 December 2024, according to a statement from MTN, which said the decision aligns with its broader Ambition 2025 strategy that prioritises simplifying portfolio and concentrating on markets that offer sustainable growth and long-term returns.
“This milestone marks a new phase for MTN Guinea-Conakry under local ownership. We thank the staff, customers, regulators, and stakeholders for their unwavering support throughout our time in the country,” Ralph Mupita, MTN Group President and Chief Executive Officer.
“Simplifying our portfolio enables us to concentrate resources where we can drive significant impact and growth.”
Mupita previously explained the rationale behind the exit at a media briefing in Johannesburg in August 2024, highlighting the challenges posed by smaller, subscale markets that struggle to fund their own growth sustainably.
He explained at the time that “We assess each market based on its ability to deliver self-funded growth. If it cannot meet that criterion, we evaluate whether it aligns with our portfolio objectives.
“For Guinea-Conakry, despite potential revenue or profit increases, we determined MTN was not the best long-term owner.”
Tax reform Czar argues MTN pays the most VAT monthly, N200b, and should be shared fairly
MTN is doing well in Nigeria, where it has the largest telecom share, and pays more than N200 billion in Value Added Tax (VAT) monthly, making it the largest contributor to the national VAT pool.
Presidential Fiscal Policy and Tax Reforms Committee Chairman, Taiwo Oyedele. made the disclosure as a panellist on a Town Hall on Tax Reforms hosted by Channels Television last December, explaining that the reforms seek to address disparities in the current VAT sharing formula.
According to him, the current formula allocates all VAT paid by MTN to Lagos where its headquarters is located even though the services that generate this revenue are bought countrywide.
He stressed that “MTN is the largest contributor to VAT in Nigeria. So they, in fact, pay VAT of over N200 billion every month; the gap between them and number two is huge.
“Today, all the VAT paid by MTN is credited and attributed to Lagos State, even as calls are made in Kano, the FCT [Federal Capital Territory], Ekiti, Edo, or Kebbi.”
Oyedele said the reform bills propose adjustments to ensure a more equitable distribution of VAT revenues across states based on actual consumption rather than the location of corporate headquarters of the entities providing goods and services.
He added that under the new framework for instance, Lagos, which currently retains the entire N200 billion VAT, would see its share reduced to approximately 20 per cent, while other states across the federation would benefit from a fairer distribution.
“This adjustment ensures that states where the VAT is generated get their fair share,” he insisted.
“When you analyse the data, you see Lagos State’s share reduces slightly, but every other state gains.”
The Tax Reform Bills, which aim to address longstanding issues in Nigeria’s fiscal policies, include provisions for revenue redistribution, addressing inefficiencies, and promoting fairness in the tax system.
The proposals have sparked national debate, with critics accusing Abuja of pushing policies that could adversely affect some parts of the country.
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