Economy
Activist Investor Urges Caution on MTN Nigeria Shares
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.
By Dipo Olowookere
Nigerian stocks shrank by 0.02 per cent as a result of renewed selling pressure, after the consumer goods index crumbled by 0.89 per cent, and the banking space contracted by 0.23 per cent.
Business Post reports that the Nigerian Exchange (NGX) Limited weakened yesterday despite the energy sector closing 1.78 per cent higher, the insurance segment increasing by 0.31 per cent, and the industrial goods counter closing flat.
The All-Share Index (ASI) eased by 44.83 points to 200,913.06 points from 200,957.89 points, and the market capitalisation decreased by N29 billion to N128.969 trillion from N128.998 trillion.
eTranzact lost 10.00 per cent to trade at N20.70, Abbey Mortgage Bank declined by 10.00 per cent to N9.90, Cadbury Nigeria retreated by 10.00 per cent to N63.00, Eterna also fell by 10.00 per cent to N33.75, and DAAR Communications dipped by 9.50 per cent to N1.81.
Conversely, Premier Paints appreciated by 9.97 per cent to N37.50, Zichis gained 9.97 per cent to trade at N13.79, McNichols improved by 9.93 per cent to N7.42, John Holt chalked up 9.86 per cent to close at N18.95, and Trans Nationwide Express went up by 9.75 per cent to N2.59.
On the last day of the week, 595.2 million equities valued at N24.5 billion were transacted in 43,440 deals versus the 678.1 million equities worth N33.1 billion traded in 42,222 deals in the previous session.
This showed an improvement in the number of deals by 2.89 per cent, and a cut in the trading volume and value by 12.22 per cent and 25.98 per cent, respectively.
Wema Bank ended the day as the busiest stock after a turnover of 131.5 million units worth N3.5 billion, Legend Internet traded 41.6 million units valued at N339.2 million, Zichis sold 35.2 million units for N485.6 million, Access Holdings exchanged 29.4 million units worth N764.8 million, and Japaul transacted 21.5 million units valued at N74.6 million.
By Adedapo Adesanya
A loss recorded by market bellwether, Central Securities Clearing System (CSCS) Plc, outweighed the presence of three price gainers, weakening the NASD Over-the-Counter (OTC) Securities Exchange by 0.73 per cent on Friday, March 27.
The Nigerian securities depository firm lost N6.27 during the session to close at N80.10 per share compared with the previous day’s N86.37 per share.
As a result, the market capitalisation shrank by N18.41 billion to N2.512 trillion from the previous session’s N2.531 trillion, and the NASD Unlisted Security Index (NSI) declined by 30.77 points to 4,199.69 points from 4,230.46 points.
The green side of the price movement log showed 11 Plc appreciating by N31.92 to N351.17 per unit from N319.25 per unit, Nigeria Mortgage Refinance Company Plc (NMRC) rose by 55 Kobo to sell at N6.05 per share compared with Thursday’s closing price of N5.50 per share, and IPWA Plc recorded a 50 Kobo growth to end at N5.51per unit, in contrast to the preceding day’s N5.01 per unit.
When the bourse closed for the day, there was a 17,067.5 per cent surge in the voluime of transactions to 58.6 million units from 342,825 units, the value of trades increased by 6,895.4 per cent in the value of securities traded as it closed at N1.6 billion compared to N23.0 million, and the number of deals executed at the session rose 85.2 per cent to 50 deals compared to the preceding session’s 27 deals.
CSCS Plc remained the most active stock by value on a year-to-date basis with 56.2 million units exchanged for N3.8 billion, Infrastructure Guarantee Credit Plc followed with 400 million units valued at N1.2 billion, and Okitipupa Plc came next with 6.5 million units traded at N1.2 billion.
Resourcery Plc closed the trading session as the most traded stock by volume on a year-to-date basis with 1.1 billion units sold for N415.7 million, followed by Infrastructure Credit Plc with 400 million units sold for N1.2 billion, and Geo-Fluids Plc with 133.0 million units at N511.1 million.
By Adedapo Adesanya
The Naira maintained stability against the United States Dollar in the black market segment of the foreign exchange (FX) market on Friday, March 27, data obtained by Business Post showed. It also remained unchanged at the GTBank FX counter at N1,401/$1.
However, it further appreciated in the Nigerian Autonomous Foreign Exchange Market (NAFEX) during the session by N3.30 or 0.2 per cent to N1,380.58/$1 from the previous day’s rate of N1,383.88/$1.
In the same vein, the domestic currency improved its value against the Pound Sterling in the spot market yesterday by N10.77 to trade at N1,836.99/$1 compared with the preceding session’s N1,847.76/£1, and gained N5.06 against the Euro to sell at N1,592.08/€1 versus N1,597.14/€1.
The Naira remains under pressure, but the current range indicates a form of stability as the Central Bank of Nigeria (CBN) reiterated its promise to anchor reforms around FX rate stability and stronger reserves to support financial markets.
Amid the currency pressures, the apex bank introduced a series of measures aimed at improving liquidity and strengthening the FX market. In a key move, the apex bank removed the cash pooling requirement for International Oil Companies (IOCs), allowing them full access to their repatriated export proceeds from the previous 50 per cent.
However, the country could see less short-term Dollar supply staying in the country and may invite pressure on the Naira if outflows exceed inflows.
The pressure on the currency comes amid a sustained decline in Nigeria’s external reserves, which provide the central bank with the buffer to support the naira. The reserves fell for the ninth consecutive day to $49.48 billion as of March 26, 2026, marking a decline of $540 million, or 1.08 per cent, from $50.02 billion recorded on March 11.
Meanwhile, the cryptocurrency market tumbled on Friday due to a broader sell-off in US equities, which recorded a $17 trillion loss. The Friday plunge fits into a pattern since the war in Iran broke out, with gains on Monday turning into losses by the end of the week.
Ethereum (ETH) depreciated by 3.2 per cent to $2,003.73, Bitcoin (BTC) fell by 3.1 per cent to $66,439.48, Solana (SOL) dropped by 2.9 per cent to $83.44, Cardano (ADA) crashed to $0.2474, Binance Coin (BNB) went down by 2.4 per cent to $613.17, TRON (TRX) dipped 1.5 per cent to $0.3113, Dogecoin (DOGE) declined by 1.4 per cent to $0.0908, and Ripple (XRP) slumped 1.4 per cent to sell at $1.33, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
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