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

Seplat Completes Conversion of Onshore Assets to PIA Fiscal Regime

Published

20 minutes ago

23/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Seplat Energy Plc has completed the conversion of its operated onshore oil and gas assets to the fiscal regime of Nigeria’s Petroleum Industry Act (PIA), marking a major regulatory milestone for the company.

In a statement issued on Tuesday, the dual-listed Nigerian energy firm said its subsidiaries, Seplat West Limited and Seplat East Onshore Limited, finalised the conversion from the former Petroleum Profits Tax framework to the PIA regime following the fulfilment of all technical and regulatory requirements.

The PIA, signed into law in August 2021, was introduced to modernise governance, improve transparency, attract investment, and make Nigeria’s petroleum fiscal framework more competitive globally.

The conversion covers assets previously held under Oil Mining Leases (OMLs) 4, 38, 41 and 53. During the first nine months of 2025, these assets recorded an average working interest production of 42,591 barrels of oil equivalent per day, accounting for approximately 31 per cent of Seplat’s total output.

According to the company listed on both the Nigerian Exchange Limited and the London Stock Exchange, the PIA framework is expected to support increased investment, production growth and improved operational efficiency. The anticipated impact of the conversion had already been factored into Seplat’s medium-term guidance presented at its Capital Markets Day in September 2025.

Seplat noted that it executed Conversion Contracts with its joint venture partners in February 2023 and has since worked closely with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to complete the process. New Petroleum Mining Lease (PML) and Petroleum Prospecting Licence (PPL) numbers have now been issued, with PIA-based operations expected to commence from January 1, 2026, subject to regulatory guidance.

Commenting on the development, Chief Executive Officer Roger Brown said the successful conversion reflects the company’s commitment to regulatory compliance and value creation.

“Conversion to the PIA fiscal regime has been an important focus for Seplat, and we are delighted to have delivered, alongside our respective joint venture partners, the conversion of our onshore operated assets within the timeline outlined at our recent Capital Markets Day,” Mr Brown said.

He added that the transition positions the company for improved profitability and stronger cash flow margins in its onshore business.

Seplat also disclosed that it is continuing efforts to convert its offshore assets to the PIA regime, with a target completion date of 2027.

Economy

NASD Index Rises 0.16% on Renewed Investors’ Appetite

Published

3 hours ago

23/12/2025

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.16 per cent on Monday, December 22 as investors showed hunger for unlisted stocks.

Trading data showed that the volume of securities traded at the session surged by 532.9 per cent to 12.6 million units from the previous 1.9 million units, as the value of transactions jumped by 64.3 per cent to N713.6 million from N80.3 million, though the number of deals moderated by 13.5 per cent to 32 deals from the 37 deals recorded in the previous trading session.

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

InfraCredit Plc also finished the trading day as the most traded stock by volume on a year-to-date basis with 5.8 billion units traded for N16.4 billion, trailed by Industrial and General Insurance (IGI) Plc with the sale of 1.2 billion units for N420.7 million, and Impresit Bakolori Plc with a turnover of 537.0 million units valued at N524.9 million.

The unlisted securities market printed a price loser, FrieslandCampina Wamco Nigeria Plc, which dropped 20 Kobo to sell at N53.80 per share versus last Friday’s closing price of N54.00 per share.

However, the loss was offset by the trio of NASD Plc, Golden Capital Plc, and UBN Property Plc.

NASD Plc gained N5.00 to close at N60.00 per unit versus N55.00 per unit, Golden Capital Plc appreciated by 77 Kobo to N8.45 per share from N7.68 per share, and UBN Property Plc improved by 22 Kobo to N2.43 per unit from N2.21 per unit.

As a result, the market capitalisation increased by N3.38 billion to N2.125 billion from N2.121 trillion, and the NASD Unlisted Security Index (NSI) grew by 5.65 per cent to 3,552.06 points from 3,546.41 points.

Economy

Nigeria’s Stock Exchange Sustains Bull Run by 0.26%

Published

3 hours ago

23/12/2025

Dipo Olowookere

By Dipo Olowookere

The bulls remained on the floor of the Nigerian Exchange (NGX) Limited on Monday, rallying by 0.26 per cent at the close of transactions.

This was buoyed by the gains recorded by 34 equities on Nigeria’s stock exchange, which outweighed the losses posted by 20 equities, indicating a positive market breadth index and strong investor sentiment.

Aluminium Extrusion gained 9.72 per cent to quote at N13.55, International Energy Insurance improved by 9.69 per cent to N2.49, Mecure Industries rose by 9.64 per cent to N60.30, Royal Exchange expanded by 9.60 per cent to N1.94, and Austin Laz grew by 9.50 per cent to N2.65.

On the flip side, Custodian Investment depleted by 10.00 per cent to N35.10, ABC Transport crashed by 10.00 per cent to N3.15, Prestige Assurance weakened by 7.41 per cent to N1.50, and Guinea Insurance slipped by 7.38 per cent to N1.13.

During the session, investors traded 451.5 million shares worth N13.0 billion in 33,327 deals compared with the 1.5 billion shares valued at N21.8 billion transacted in 25,667 deals in the preceding session, showing spike in the number of deals by 29.84 per cent, and a decline in the trading volume and value by 69.90 per cent and 40.37 per cent apiece.

The first trading session of the Christmas week had Tantalizers as the most active with 50.2 million units sold for N127.5 million, First Holdco transacted 32.6 million units worth N1.5 billion, Access Holdings exchanged 27.3 million units valued at N562.3 million, Custodian Investment traded 22.1 million units for N857.8 million, and Chams transacted 21.3 million units valued at N71.1 million.

When the closing gong was struck at 2:30 pm to end trading activities, the All-Share Index (ASI) was up by 401.69 points to 152,459.07 points from 152,057.38 points and the market capitalisation went up by N256 billion to N97.193 trillion from N96.937 trillion.