MTN Nigeria is set to distribute about ₦545.89 billion in interim dividends to shareholders on September 7, 2026, but the Nigerian government will receive a significant share of the payout through withholding tax.

The company announced an interim dividend of ₦26 per share, subject to a 10% withholding tax. Shareholders whose names appeared on MTN Nigeria’s register as of August 20 are eligible for the payment.

With approximately 20.99 billion shares outstanding at the end of the first half of 2026, the total gross dividend amounts to about ₦545.9 billion.

Government to Collect ₦54.59 Billion

Under Nigeria’s 10% withholding tax on dividends, approximately ₦54.59 billion will be deducted from MTN Nigeria’s dividend payment and remitted to the government.

This leaves shareholders with approximately ₦491.3 billion collectively.

The tax means investors will not receive the full ₦26 announced per share. Instead, the effective dividend after withholding tax will be ₦23.40 per share.

For example, an investor holding 1,000 MTN Nigeria shares would have:

  • Gross dividend: ₦26,000
  • Withholding tax: ₦2,600
  • Net dividend: ₦23,400

MTN International Remains the Biggest Beneficiary

Although the government will receive a larger dividend-related payment than most shareholder groups, MTN International (Mauritius) Limited remains by far the biggest beneficiary because of its majority stake in MTN Nigeria.

MTN International owns approximately 73.39% of MTN Nigeria, representing about 15.41 billion shares.

Its gross dividend entitlement is approximately ₦400.65 billion, which would leave about ₦360.58 billion after the 10% withholding tax.

Retail Investors Own a Small Share of the Company

MTN Nigeria has more than 346,000 shareholders, but the distribution of ownership is heavily concentrated.

More than 336,000 retail investors holding between one and 10,000 shares collectively own only about 0.66% of the company's shares.

Despite representing the overwhelming majority of individual shareholders, this group is therefore entitled to a relatively small portion of the overall dividend.

Collectively, these retail investors are expected to receive about ₦3.22 billion after tax from the latest dividend.

MTN’s Dividend Payments Return After Financial Turnaround

The latest dividend comes after a significant improvement in MTN Nigeria’s financial performance.

The company resumed dividend payments in 2025 after restoring positive retained earnings and shareholders’ equity. It declared an interim dividend of ₦5 per share in October 2025, followed by a proposed final dividend of ₦15 per share for the year.

MTN Nigeria's revenue increased by more than 54% in 2025, while profit after tax reached approximately ₦1.11 trillion, reversing the loss recorded in the previous year.

The momentum continued in the first half of 2026. Revenue reached ₦2.99 trillion, representing a 25.9% year-on-year increase, while profit after tax rose 70.6% to approximately ₦707.54 billion.

A New Revenue Stream for Government

The ₦54.59 billion withholding tax represents only a small portion of Nigeria's broader 2026 tax-revenue target, but it demonstrates how dividend-paying companies can contribute significantly to government revenue.

MTN Nigeria had already paid approximately ₦384.05 billion in taxes during the period.

For shareholders, the immediate takeaway is simple: the announced ₦26 dividend becomes ₦23.40 per share after withholding tax.

For the government, MTN Nigeria's dividend creates a ₦54.59 billion tax collection without the government owning a single share in the company.