TheCable Fact Check
  • Home
  • Fact Check
  • Fake News
  • Check Am For Wazobia
Reading: FACT CHECK: Does MTN Nigeria remit N200bn VAT every month as claimed by Taiwo Oyedele?
Share
Latest News
CableCheck wins IFCN global fact check fund
Íhé ńgósị́ ébé Peter Obi sékpù àlà n’íhú Tinubu bụ̀ ǹkè é jìrì AI nwóghàrị̀á
Hoton Peter Obi ya durkusa ma Tinubu a Rome na hadi ne
Foto wey show as Peter Obi dey kneel down for Tinubu inside Vatican na photoshop
Peter Obi kò kúnlẹ̀ fún Tinubu ní Rome
FACT CHECK: No, Abia government didn’t block arrest of 59 youths by EFCC
Video wey show ‘bandits’ wit bundles of moni no be from Nigeria
Nàìjíríà kọ ni àwọn jagidijagan ti se àfihàn beeli, beeli owó nínú fídíò ti ṣẹlẹ̀
Advertisement
Aa
TheCable Fact CheckTheCable Fact Check
Search
  • Home
  • Fact Check
  • Fake News
  • Check Am For Wazobia
Follow US

FACT CHECK: Does MTN Nigeria remit N200bn VAT every month as claimed by Taiwo Oyedele?

Bunmi Aduloju
By Bunmi Aduloju Published December 10, 2024 4 Min Read
Share

On November 2, Taiwo Oyedele, chairman of the presidential committee on tax policy and fiscal reforms, claimed MTN Nigeria is the largest value-added tax (VAT) contributor in Nigeria, remitting over N200 billion monthly. 

Oyedele spoke during a town hall meeting where he spoke on the tax reform bills.

“MTN is the largest contributor to VAT in Nigeria. In fact, they pay VAT of over N200 billion every month,” he said.

“The gap between them and number two is daylight and darkness apart.”

WHAT IS VAT?

According to the Federal Inland Revenue Service (FIRS), VAT is a consumption tax paid when goods are purchased and services rendered.

It is described as a multi-stage tax, borne by the final consumer.

“All goods and services (produced within or imported into the country) are taxable except those specifically exempted by the VAT Act. VAT is charged at a rate of 7.5%,” FIRS said.

“Some goods and services such as non-oil exports are zero-rated. All taxable persons are required to file VAT monthly returns not later than 21st day following the month of transaction.”

On May 8, Oyedele said the VAT rate, which is currently 7.5 percent, needs to be increased.

Reacting to the recommendation on September 8, former Vice-President Atiku Abubakar criticised the proposed VAT hike, describing it as a “regressive and punitive policy”.

After that, Wale Edun, minister of finance, clarified that the federal government had not increased the VAT rate.

On October 13, TheCable reported that the national assembly was considering a bill proposing an increase in VAT from 7.5 percent to 10 percent.

MTN NIGERIA TAX PAYMENTS 

According to FIRS, all businesses operating in Nigeria must file annual tax returns based on their legal structure, operations, assets, and transactions.

In Nigeria, MTN pays tax to the service, including VAT, withholding tax, company income tax, stamp duties, tertiary education tax, and information technology levy.

Amid doubts about the accuracy of the 2021 tax figure announced by MTN Nigeria, the telecom operator made clarifications, giving a breakdown of its operations. 

The company explained that it paid VAT on revenue worth N98.99 billion, withholding tax culminating in N71.17 billion, and company income tax of N99.28 billion.

MTN Nigeria said stamp duties were worth N8.47 billion, tertiary education tax was N10.64 billion, and information technology levy totalled N3.09 billion, culminating in direct remittance of N291.7 billion. 

The network service said it paid a tax of N725.3 billion in the 2022 fiscal year, as well as N549.3 billion in 2023, according to sustainability reports of the organisation.

However, the company did not specify the amounts paid as VAT to the government.

On average, this means the telecoms operator paid N60.41bn and N45.7bn every month as overall tax in 2022 and 2023, respectively — much lower than the total VAT mentioned by Oyedele.

In addition, according to the 2024 Q1 to Q3 unaudited financial results, the company said it recorded N33.53 billion.

In the VAT collection report of the National Bureau of Statistics (NBS), the information and communications sector where MTN Nigeria is subsumed, remitted N256.34 billion in the first and second quarters of 2024.

Consequently, suggesting that the company makes a monthly remittance of N200 billion is impractical.

TheCable reached out to Oyedele to get clarification on his data source but calls and messages sent to him were not responded to.

VERDICT 

Oyedele’s claim that MTN Nigeria pays over N200 billion monthly as VAT is false. On average, the company’s total tax payments are far lower than the amount put forward by Oyedele.

TAGGED: Taiwo Oyedele, value-added tax

Please send your feedback, claims to fact check and corrections requests to [email protected]

Bunmi Aduloju December 10, 2024 December 10, 2024
Share this Article
Facebook Twitter Email Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

POPULAR POSTS

Advertisement

CableCheck wins IFCN global fact check fund

CableCheck, the fact-checking initiative of the Cable Newspaper Journalism Foundation (CNJF), has been awarded the…

May 30, 2025

Íhé ńgósị́ ébé Peter Obi sékpù àlà n’íhú Tinubu bụ̀ ǹkè é jìrì AI nwóghàrị̀á

Ótù ihe ngosị nke a na-ekesa na soshal midia na-egosị ebe Peter Obi, onye jiri…

May 24, 2025

Hoton Peter Obi ya durkusa ma Tinubu a Rome na hadi ne

Wani hoton da ya yi zagayen a shafukan sada zumunta ya nuna Peter Obi, dan…

May 24, 2025

Foto wey show as Peter Obi dey kneel down for Tinubu inside Vatican na photoshop

One foto wey don waka for social media show as Peter Obi, presidential candidate of…

May 24, 2025
Advertisement
Advertisement

YOU MAY ALSO LIKE

CableCheck wins IFCN global fact check fund

CableCheck, the fact-checking initiative of the Cable Newspaper Journalism Foundation (CNJF), has been awarded the BUILD 2025 grant by the…

Fact CheckTop Stories
May 30, 2025

FACT CHECK: No, Abia government didn’t block arrest of 59 youths by EFCC

A Facebook user has claimed that the Abia government blocked officers of the Economic and Financial Crimes Commission (EFCC) from…

Fact Check
May 24, 2025

FACT CHECK: Viral image of Peter Obi kneeling before Tinubu in Rome photoshopped

An image making the round on social media depicts Peter Obi, presidential candidate of the Labour Party (LP) in 2023,…

Fact Check
May 22, 2025

FACT CHECK: Video showing ‘bandits’ with bundles of cash NOT from Nigeria

A video circulating on social media is purportedly showing bandits sharing bundles of cash in Nigeria. In the nearly two-minute…

Fact Check
May 20, 2025

CableCheck seeks to provide reliable tools and resources for readers to tackle the menace of fake and misleading materials constantly pushed into the public space from various sources. We monitor the accuracy of claims made in traditional and social media. We also provide a tracker to hold politicians and policymakers accountable for the plans and promises they make to the public. CableCheck is a project of the Cable Newspaper Journalism Foundation (CNJF), supported by the MacArthur Foundation and implemented by TheCable newspaper.

Follow US: 

LINKS

  • Contact
  • About Us
  • Non-Partisanship Policy
  • Funding
  • Correction Policy
© Copyright TheCable. All Rights reserved.
Welcome Back!

Sign in to your account

Lost your password?