Rewane: MTN’s Investment in Nigeria Has Impacted Businesses, Economy
Managing Director, Financial Derivatives Company, Bismarck Rewane, speaks about MTN’s investment in Nigeria’s telecoms sector in the last 25 years and the impact on Nigerian businesses, the Nigerian economy among
In 2001, MTN entered the Nigerian telecoms sector, transforming a state-owned monopoly into a private monopoly. As a result, the number of active lines grew from 250,000 in 2000 to over 170 million today, with MTN holding a dominant market share of 52 per cent. Teledensity has also increased dramatically, from 0.4 per cent in 2000 to 79 per cent today, allowing Nigerians to conduct financial transactions from the comfort of their homes and offices at any time.
The shift from physical cash transfers to electronic transfers has had a significant impact on the Nigerian economy. The telecoms sector's economic growth rate of 14 per cent is more than four times the overall economic growth rate, indicating that the sector has outperformed the Nigerian economy. MTN's contributions to the Nigerian economy are substantial, with the company paying N647 billion in taxes, which is nearly 20 per cent of the total state government revenue.
The telecoms sector's impact on the economy is so significant that if MTN, Airtel, and Globacom were to cease operations, the Nigerian economy would likely collapse.
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