Why Nationalizing MTN Would Backfire for Nigeria

Many are calling for MTN Nigeria to be nationalized in retaliation for South Africa’s actions against Nigerian criminals. They argue that taking over MTN would punish South Africa and boost local ownership. But MTN Nigeria pays hundreds of billions in taxes each year and employs thousands of Nigerians through its retail arm and tower maintenance contracts. Major tower operators like IHS Holding and American Tower Corporation also support thousands of jobs and contribute significant levies to the government. History shows that state takeovers of telecom firms often lead to nepotism, inflated contracts, corruption and service collapse. A nationalized MTN could face mismanagement, bloated staffing, and deferred tower leases—resulting in poor network coverage and slower internet. In the end, MTN Nigeria might need a government bailout, scare away other investors and even end up in private hands at a fraction of its value. Nationalizing Africa’s largest telecom operator risks turning a vital service into an elitist privilege.

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