MTN Expresses Commitment to Socio-economic Development

Telecommunications giant, MTN Nigeria has reaffirmed its commitment to playing a role in driving socio- economic growth and development in the country.
According to Ahmad Farroukh, the company’s chief executive officer, ‘one of our key objectives when we launched our operation in 2001 was to use telecommunications as a platform to unleash Nigeria’s strong potential for development’.
In providing telecommunications services to over 25 million active subscribers, he said, MTN operation has registered an impact that clearly underscores the wide-ranging economic multiplier nature of investment in telecommunications. The multidimensional impact of our over $5 billion investment in our network rollout includes job creation and the empowerment of thousands of small and medium businesses.
“Today, in addition to over 5000 base stations, MTN has put in place a 5,411 kilometre fibre optic transmission backbone, which is the longest private infrastructure of its kind in Africa. The fibre optics ‘super highway’ is the catalyst for an ICT revolution which will impact the whole of sub-Saharan Africa,” Mr. Farroukh said.
He also revealed that in recognition of customer demand in the  busiest commercial hubs of the country, MTN is also erecting metropolitan ‘self healing’ fibre rings across major cities like Lagos, Abuja, Port Harcourt, Kano and Ibadan. The effect of the metropolitan network would be a dramatic improvement in the quality of service and increased robustness of the network in those areas.
Speaking on quality of service, Mr Farroukh said that in 2008 the company achieved an average monthly build rate of 120 base stations, a feat that has remained unsurpassed in Nigeria and indeed the rest of Africa.  “We will continuously redouble our efforts to ensure that the growing needs of our country, for quality voice and data services are met in a most satisfactory manner”.
The company plans to invest over N180 billion on its network rollout in 2009. In 2008, it invested approximately N137 billion representing more than 30% of the CAPEX budget allocation for the entire MTN Group which has a footprint in 21 countries in Africa and the Middle East.
Mr. Farroukh also stated that the company would continue to make the necessary investments in telecommunications infrastructure as well as in all levels of government through the payment of tax.
He explained the importance that the company attaches to timely payment of its  taxes in order to discharge its own  civic responsibilities and to ensure that government receives the necessary resources to meet  their own statutory obligations for the common good.
MTN paid approximately N151Billion in VAT and other levies to various agencies of Government during the period of its pioneer status from 2001-6.
‘We believe that tax compliance is key to good corporate citizenship. Indeed in 2008 we paid in excess of N87 Billion and we believe that this figure is a significant contribution to Nigeria’s GDP by a single company”.
It will be recalled that MTN Nigeria won the Lagos State award for the ‘Best corporate compliant company on P.A.Y.E payer’ in 2007 and 2008
The company has won numerous awards for its corporate citizenship, especially in the area of corporate social investment through the MTN Foundation.
Explaining the guiding principles of the MTN Foundation, Mr. Farroukh described corporate social responsibility as an integral part of the company’s business strategy.
He said that MTN through its Foundation would remain focused on implementing high impact corporate social investments across the country. To date, the Foundation which is funded by up to1% Profit after Tax from MTN has 107 project sites in 28 states and the Federal Capital Territory
Farroukh pointed out that the fortunes of the company therefore directly  impacts the funds available for social investments, commenting that the company   has been able to deploy sizeable funds to numerous initiatives that have improved the lives of numerous Nigerians.
‘Every recharge card that is bought contributes to the improvement of numerous lives. We have our customers to thank for all that we are able to do for the most vulnerable Nigerians through the Foundation,’ said Mr Farroukh.