Economy

Activist Investor Urges Caution on MTN Nigeria Shares

Published

7 years ago

15/02/2019

Modupe Gbadeyanka

By Modupe Gbadeyanka

An activist investor, Mr Gbadebo Olatokunbo, who doubles as the co-founder of Nigeria Shareholders

Solidarity Association (NSSA), has advised investors to be careful in subscribing to the much-anticipated listing of shares of MTN Nigeria on the Nigerian Stock Exchange (NSE).

Recently, CEO of MTN Group, Mr Rob Shuter, disclosed that shares of the telecommunication firm would be listed on the NSE by introduction by June 2019.

According to Mr Shuter, “We have decided though to pursue the listing by means of a listing by introduction. It is phase one” of the listing.

He said after the listing of MTN Nigeria shares by the first half of the year, Nigerian investors would then have the opportunity to buy into the firm in the second phase of the listing.

But reacting to this announcement by MTN Group, Mr Olatokunbo told the News Agency of Nigeria (NAN) that there was no excitement about the proposed listing of MTN’s shares, pointing out that the alleged constant violation of Nigerian regulatory laws by MTN should be a source of concern for investors.

“MTN is not good in my view in their dealing with the regulatory agencies.

“Each time they will violate our rules and when caught, they will deny it and later apologise, such actions mean a lot in terms of corporate behaviour.

“As an investment entity, it will be a good investment but investors need to ‘shine their eyes,’ when they deal with a company like MTN,” he said.

Mr Olatokunbo blamed the nation’s laws and regulations as well as regulatory agencies for lack of focus and pro-activeness.

He said the rules/regulations guiding the operations of the telecoms industry were long overdue for review, particularly on the number of years a company should operate in the country before being quoted.

According to him, any company that is 10 years in Nigeria with good profit should be mandated to list on the NSE.

However, Mr Moses Igbrude, Publicity Secretary of Independent Shareholders Association of Nigeria (ISAN), shares a different view on the listing of MTN’s shares, saying like any new listing, it would excite investors.

Mr Igbrude said it showed that the market was deepening, expanding as well as a sign of acceptance, being a foreign company.

“Let us hope that our assumption that MTN is a viable and profitable company is a reality when they eventually come to the market.

“When most big companies go public, one will be shocked and surprised to see bloated volume of shares with some of them declaring losses.

“I sincerely appeal to the regulators to carry out thorough due diligence before settling for MTN listing price,” Mr Igbrude said.

Similarly, Prof. Uche Uwaleke, Head of Banking and Finance Department, Nasarawa State University Keffi, described the planned listing of MTN’s shares as a welcome development for the Nigerian capital market.

“One of the challenges the stock market is facing is that industry composition is concentrated in a few sectors. The listing of MTN will help dilute this over concentration.

“It will help to deepen the market, enhance its capitalisation and contribution to the nation’s Gross Domestic Product as more Nigerians are given the opportunity to participate in the fortunes of the telecom company,” Mr Uwaleke said.

He added that the listing would give a positive signal to both foreign and local investors who would see it as a sign that the investment climate in Nigeria was improving.

“The success of the listing will encourage other telecommunication companies such as Globacom, Etisalat and other multinational companies to consider approaching the stock exchange.

“This will be positive for the capital market and the economy in general,” the university don said. After it had issues with the Nigerian government, MTN Nigeria reached an agreement to list its shares on the local exchange.

Economy

NBA Demands Suspension of Controversial Tax Laws

Published

12 hours ago

24/12/2025

Modupe Gbadeyanka

By Modupe Gbadeyanka

The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.

In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.

A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.

To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”

“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.

It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”

“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.

“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.

“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.

“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.

Economy

MRS Oil, Two Others Raise NASD Bourse Higher by 0.52%

Published

14 hours ago

24/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.

The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.

Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.

Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.

Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.

The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.

By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.

In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.

Economy

NGX All-Share Index Soars to 153,354.13 points

Published

15 hours ago

24/12/2025

Dipo Olowookere

By Dipo Olowookere

It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.

The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.

Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.

Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.

At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.

This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.

VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.

In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.