MTN Nigeria is set to distribute about ₦545.89 billion in interim dividends to shareholders, with the Federal Government expected to receive approximately ₦54.59 billion through the mandatory 10% withholding tax.
Newsonspot reports that MTN Nigeria announced on July 30 that its board had approved an interim dividend of ₦26 per 2-kobo ordinary share, subject to withholding tax. The dividend is scheduled for payment on September 7, 2026, to shareholders whose names appeared on the company’s register as of August 20.
With 20.99 billion shares outstanding at the end of the first half of 2026, the approved dividend translates to a gross payout of approximately ₦545.9 billion.
However, shareholders will not receive the full amount. The 10% withholding tax will deduct about ₦54.59 billion from the dividend pool, leaving approximately ₦491.3 billion for investors.
For individual shareholders, the deduction means the effective dividend will be ₦23.40 per share.
For example, an investor holding 1,000 MTN Nigeria shares will be entitled to a gross dividend of ₦26,000. After the ₦2,600 withholding tax, the investor will receive ₦23,400.
The scale of the dividend payment also highlights the contrasting distribution of MTN Nigeria’s ownership. Although the company has more than 346,000 shareholders, the majority of investors hold relatively small positions.
More than 336,000 retail shareholders with between one and 10,000 shares collectively hold about 137.77 million shares. Their gross dividend entitlement is approximately ₦3.58 billion, which falls significantly below the government’s ₦54.59 billion withholding-tax revenue.
MTN International (Mauritius) Limited remains the dominant shareholder, holding about 15.41 billion shares, representing 73.39% of MTN Nigeria. Its gross dividend entitlement stands at approximately ₦400.65 billion, while about ₦360.58 billion will remain after withholding tax.
The latest dividend payment follows MTN Nigeria’s return to dividend payments in 2025 after restoring positive retained earnings and shareholders’ equity.
The company declared an interim dividend of ₦5 per share in October 2025, followed by a proposed final dividend of ₦15 per share, bringing its total 2025 dividend to ₦20 per share.
The resumption of dividend payments followed a strong financial recovery. MTN Nigeria’s revenue increased by 54.93% in 2025, while profit after tax rose to ₦1.11 trillion.
The company maintained the momentum in the first half of 2026, reporting revenue of ₦2.99 trillion, representing a 25.9% year-on-year increase. Profit after tax also climbed 70.6% to ₦707.54 billion.
Beyond the dividend withholding tax, MTN Nigeria remains a significant contributor to government revenue. The company reported paying ₦384.05 billion in taxes during the period.
The latest dividend therefore provides another boost to government revenue, while shareholders receive a net ₦23.40 for every MTN Nigeria share held after the 10% withholding tax.
