Why MTN Nigeria Listing on NSE is Delayed—CEO

Image

By Dipo Olowookere

A senior official of MTN on Wednesday explained why the South Africa-based telecom giant was yet to list its shares on the Nigerian Stock Exchange (NSE).

In 2016, it was announced that MTN Group would offer part of its Nigerian unit to citizens of the country through an Initial Public Offering (IPO). The company said it was planning to raise about $500 million from the exercise.

But nearly three year after, the much-hyped proposed listing on the NSE was yet to become a reality because of postponements.

It was initially said that the exercise would be done before end of the first half of 2018, but was later moved to end of the year.

The latest information is that the listing of MTN Nigeria shares would now be done before the end of H1 2019 or early Q3 2019.

Addressing journalists in Lagos yesterday, the Chief Executive Officer (CEO) of MTN, Mr Ferdinand Moolman, explained why the exercise has been delayed for too long.

According to him, the company was making sure it sorted out some issues with the Nigerian government, which has imposed different fines on the telco.

After an initial $1 billion fine for SIM registration infractions in 2016, the Central Bank of Nigeria (CBN) last August asked the company to refund $8.1 billion it allegedly repatriated illegally.

MTN took the matter to court and an out-of-court settlement was reached and the firm was told to only pay $52.6 million.

While that was going on, precisely in September last year, the Attorney-General of the Federation (AGF), Mr Abubakar Malami, asked the network operator to pay $2 billion in outstanding taxes for 10 years.

During his chat with newsmen on Wednesday, Mr Moolman emphasised that these issues were the main reason for the delay in listing MTN Nigeria shares on the stock exchange.

“Truth be told, it would not be wise to offer shares to the public if we had outstanding issues still hanging.

“We thank God we were able to resolve [the issue with the CBN] on December 12, 2018. So, we are now feverishly working toward listing, and we plan to do the listing before the end of H1 or early Q3 of this year,” the CEO said.

Mr Moolman further said, “We have always been serious about the proposed listing, but like I said earlier, we have to remove every bottlenecks before we allow the exercise to fly.”

“Nigerians already owned 20 percent of MTN shares, which are not publicly traded, but were sold through over-the-counter (OTC), and other investment schemes,” he added.

“We needed to change to a public company because we are a private company at the moment before we can list. We need to send our directors to training for compliance with Securities and Exchange Commission (SEC) requirements. So a lot of work had happened to prepare for the listing. Then the CBN issue happened,” Mr Moolman told journalists.

Commenting on how the exercise would be done, the chief executive said, “We anticipate to do it in two phases; the first phase will be to list and then start trading in our shares and then lifting it for bigger participation.”

However, he assured that, “There is a lot of value we can bring to this market,” relying on the 17 percent growth in revenue the firm recorded in 2018 financial year, where its turnover hit over N1 trillion, becoming the firm Nigerian company to achieve this feat.

Business Post reports that last year, MTN publicly listed its shares in Ghana and was the biggest listing in the West African nation’s stock exchange.

Share
Related Stories
Image
06-February-2024

NDPC Records 12.7% Increase in Revenue to N6.2bn in 2023

By Adedapo Adesanya The Nigeria Data Protection Annual Report has revealed that the country’s data protection cumulative revenue in 2023 rose by 12.73 per cent to N6.2 billion from N5.5 billion in 2022. The report was unveiled at the second-anniversary dinner and awards organised by the Nigeria Data Protection Commission (NDPC) recently in Abuja. Established on February 4, 2022, the NDPC was mandated to ensure data privacy and protection in the country, and that the rights of citizens are in line with global standards. The report stated, “Other areas that the rates increased included Compliance Audit Report which recorded 3,451

Image
09-February-2024

Why Integrating Apps, Democratising Automation Should be Cornerstone of Every IT Strategy

By Linda Saunders As businesses look to transform the AI world, the demand for AI and automation tools is growing, intensifying the pressure on IT teams to deliver. This is especially true for the African continent. IT leaders across Africa are grappling to establish the governance and processes required to master the basics with widening digital skills gaps, disconnected systems, and compliance concerns among their top concerns. This is according to MuleSoft’s 2024 Connectivity Benchmark Report, which found that among 1,050 IT Leaders worldwide, 98% say they are facing challenges regarding digital transformation. 81% of IT Leaders report the persistence of

Image
06-February-2024

The Growing Importance of Privacy Amongst Customers and How Businesses Should Cater to it

By Kehinde Ogundare and Veerakumar Natarajan Privacy is a growing concern for technology consumers worldwide. While there was a time when that may not have been the case for countries like Nigeria and Kenya, that’s no longer the reality. As connectivity becomes more affordable and ubiquitous, Kenyans and Nigerians have become increasingly tech-savvy and conscious regarding how much data they share with technology companies and what the latter is doing with it. In the face of these growing concerns, companies operating in Africa need to be mindful of the increasing privacy mindset of their customers. Aside from regulatory compliance, companies

Image
09-February-2024

Stakeholders Explore AI in Cybersecurity at Tek Experts C-Suite Forum

By Adedapo Adesanya Cytek Security, the sister company of Tek Experts, a leading provider of tech talent solutions, recently hosted its inaugural c-suite roundtable, bringing together industry leaders across financial services, tech, and consulting sectors to explore the evolving landscape of cybersecurity and the critical role of artificial intelligence (AI) in bolstering defences in today’s world. This is part of efforts by Tek Experts and Cytek Security to foster knowledge-sharing initiatives in the industry while innovating to adapt to the evolving cybersecurity landscape in Nigeria. At the event themed Beyond Automation – Unleashing the Strategic Power of AI for Cybersecurity,

More Stories
Image
23-May-2021

NGX Creates Platform for Price Discovery, Liquidity for Investors

By Dipo Olowookere One of the best platforms companies can utilise to meet their strategic business objectives is the Nigerian Exchange (NGX) Limited, the Divisional Head of Listings Business at NGX Limited, Mr Olumide Bolumole, has said. According to him, the exchange provides “an avenue for price discovery and liquidity for existing and new investors.” Mr Bolumole, while speaking at the listing of the N5 billion bond of CardinalStone Partners Limited last Thursday, urged organisations to “take full advantage of our products and services to support their growth story” as it would be beneficial to them. He described the listing

Image
05-May-2020

Access Bank Denies Closing Over 300 Branches, Sacking Staff

By Modupe Gbadeyanka Tier-one lender, Access Bank Plc, has said reports making the rounds that it has closed over 300 branches across the country as untrue. In a statement signed by the Company Secretary, Mr Sunday Ekwochi, the bank also said media reports that it was downsizing its workforce by 75 percent are totally false. The financial institution said the closure of a bank branch in the country requires the approval of the Central Bank of Nigeria (CBN), stressing that it has not approached the CBN for such. “The bank has not applied for nor obtained the approval of the

Image
17-February-2022

Oil Jumps 1% as Russia-Ukraine Tension Remains

By Adedapo Adesanya After initial de-escalation of the Russia-Ukraine tension drove oil prices downwards, the commodity found its way up again as there was no evidence of a significant Russian withdrawal of its military forces from near Ukraine’s frontiers, despite claims that a pullback was underway. Brent crude climbed $1.45 or 1.6 per cent to $94.81 per barrel while the United States West Texas Intermediate (WTI) crude gained $1.56 or 1.7 per cent to trade at $93.66 per barrel. Both benchmarks hit their highest since September 2014 on Monday, with Brent touching $96.78 and WTI reaching $95.82. On Tuesday, prices

Image
12-October-2016

UBA Records N62b Profit In 9 Months

By Dipo Olowookere The third quarter financial results of pan-African banking group, United Bank for Africa Plc (UBA), has shown a 7% year-on-year growth in profit before tax to N62 billion. This comes despite the challenging macro-economic environment. In the results, the bank had an impressive 18.2% annualized return on average equity and also recorded an appreciable growth in both funding and fee income lines. Group Managing Director and CEO of UBA Plc, Mr Kennedy Uzoka, while commenting on the report said, “I am pleased with our performance in the first nine months of the year.” “Notwithstanding the negative economic

Image
02-October-2016

Nigeria On Right Path To Diversified Economy—Amosun

By Dipo Olowookere Ogun State Governor, Mr Ibikunle Amosun, has expressed optimism that the country was on the path of greatness in spite of its current challenges. “Yes, there are challenges, but in spite of these challenges, we are confident in the future of Nigeria and the ability of the current managers of the nation to steer it consistently on the path of greatness,” Governor Amosun said in his 2016 Independence Day celebration message issued in Abeokuta, Ogun State capital. According to Mr Amosun, “In spite of the current economic challenges, Nigeria and Nigerians have every reason to celebrate the

Image
26-August-2021

Entrepreneur Highlights Job Opportunities in Logistics Business

By Ashemiriogwa Emmanuel One of the biggest employers of labour in Festac Town, Lagos, Mr Chidi Anyina, founder of ACOA Courier, a logistics company under the Jumia logistics partnership network, has shared an insight into the growing importance of the business to job creation and expansion. Recounting the grass-to-grace story of his logistics business, Mr Anyina said he was able to expand his workforce from three staff members in a corner of one room to 37, providing support to Jumia in delivering packages to big cities, secondary cities and rural areas. “We have been with Jumia for the past eight

Image
26-March-2020

NASD Index Moves Up 0.25% as NDEP Gains N7

By Adedapo Adesanya  The share price of Niger Delta Exploration and Production (NDEP) Plc appreciated by N7 or 2.4 percent on Wednesday, March 25, 2020, trading at N300 per share in contrast to N293 it previously traded. This helped the NASD Over-the-Counter (OTC) Securities Exchange rise by 0.25 percent during the midweek trading session. Consequently, the NASD Unlisted Security Index (NSI) moved up by 1.73 points to 692.71 points from 690.71 points on Tuesday, while the market capitalisation grew by N1.27 billion to N508.84 billion from N507.57 billion. During the trading day, there was a rise in the total volume

Image
25-March-2021

One Year of Remote Trading: The NSE Experience

A year ago, the Nigerian Stock Exchange (NSE) made the bold move to activate its business continuity plan which saw the transition to remote trading in support of the fight against COVID-19. Exactly 365 days later, the exchange continues to maintain seamless trading and business operations recording no downtime and delivering exceptional value to stakeholders. The exchange has remained an attractive platform for issuers and investors to meet their investment objectives thanks to its steady and consistent capacity building in technology, automation and digitisation of its operations over the years. It is, therefore, no surprise that the exchange has recorded

Ad
Ad
Recent Stories
Image
02-March-2024

JUST IN: Nollywood Star Mr Ibu Dies

By Modupe Gbadeyanka Information just reaching Business Post indicates that popular Nigerian actor, Mr John Okafor, otherwise known as Mr Ibu, is dead. It was gathered that the Nollywood star breathed his last on Saturday in a hospital in Lagos. His demise comes a day after the Nigeria film industry lost an actor, Mr Tolani Quadri Oyebamiji, well-known as Sisi Quadri. Mr Ibu underwent a surgery, which led to the amputation of one of his legs. He was later discharged from the hospital, but was reportedly taken back. Until his death, he acted in several movies. He was well known

Image
02-March-2024

African Bishops Seek Overhaul of Financial System as Debt Burden Worsens

African Catholic Bishops called for an overhaul of the financial system to address health, climate, food and other challenges the region faces. Ahead of a gathering of African Finance Ministers in Victoria Falls, Zimbabwe, the Justice, Peace and Development Commission of the Catholic Symposium of Episcopal Conferences of Africa and Madagascar (SECAM) outlined reforms for debt relief, development resources and governance. “In Sub-Saharan Africa the number of people facing food insecurity stress or crisis has more than doubled since 2019, reaching 420 million people last year,” noted the bishops in a statement. A delegation representing the African Bishops and religious

Image
02-March-2024

MTF Class of 2023 to Premiere Her Dark Past, Grown

By Modupe Gbadeyanka Two feature films will be premiered this weekend exclusively on the Africa Magic Showcase channel 151 and Africa Magic Urban channel 153 by the students of the MultiChoice Talent Factory (MTF). The two pieces of art titled Grown and Her Dark Past are the final projects of the MTF Class of 2023 students, a statement from the organisation said. The MTF is a leading film school in West Africa for young, talented and passionate filmmakers. It was established by the media platform to grow the region’s creative industry. Grown premieres on Africa Magic Showcase at 8.30 pm

Image
02-March-2024

Mandela’s Heirs Lose Power in South Africa

By Alexander Braterskiy South African authorities warn that if the opposition wins the parliamentary elections, the country may change course and leave the informal BRICS economic bloc, which includes Russia. The position of the African National Congress party, which has been in power since the collapse of apartheid, is indeed not the best, as shown by the municipal elections held earlier in the country. The opposition accuses the president of corruption and abuse of power, as well as an inability to cope with the country’s energy crisis. The ANC crisis occurred on the 30th anniversary of the first free elections

Image
02-March-2024

CAA Reaffirms Commitment to Climate Innovation for Sustainable Future

By Modupe Gbadeyanka A leading social enterprise focused on environmental sustainability, Climate Action Africa (CAA), has reaffirmed its commitment to being at the forefront of driving climate innovation for a sustainable future. The organization, which is a key participant at the four-day Omniverse Summit 2024 in Lagos, emphasised the need to integrate environmental sustainability models, technology, and community-driven innovation to address climate change challenges. It promised to foster an inclusive climate action ecosystem through innovation, which it said can be used to identify and scale solutions to address the imminent climate crisis in Nigeria and Africa as a whole, The

Image
02-March-2024

Endosurvivors Foundation Set For Another Endometriosis Awareness

By Adedapo Adesanya EndoSurvivors International Foundation (ESIF), an NGO championing endometriosis awareness in Nigeria, has announced its upcoming events in commemoration of the Global Endometriosis Advocacy Month in March, fondly tagged March4Endo by advocates all over the world.  Endometriosis is a chronic and inflammatory condition that affects approximately 1 in 10 girls and women in Nigeria and on a global scale. This sums up to about 190 million affected girls/women around the world, about the population of Nigeria in 2018.  The World Health Organisation (WHO) recognizes that endometriosis has significant social, public health, and economic implications leading to a decrease

Image
02-March-2024

CSCS, FrieslandCampina Lift NASD OTC Bourse by 0.31%

By Adedapo Adesanya The NASD Over-the-Counter (OTC) Securities Exchange returned to the positive territory after it gained 0.31 per cent on Friday, March 1, thanks to the duo of Central Securities Clearing System (CSCS) Plc and FrieslandCampina Wamco Nigeria Plc. CSCS Plc added 81 Kobo to its value to sell for N19.46 per unit compared with the preceding day’s N18.65 per unit, and FrieslandCampina improved by N1.15 to settle at N71.4o per share, in contrast to Thursday’s closing price of N70.25 per share. However, Aradel Holdings Plc continued its price depreciation yesterday as it shed N6.75 to sell at N2,395.00

Image
02-March-2024

Naira Now N1,548.25 at Official Market, N1,560/$1 at Black Market

By Adedapo Adesanya The Naira sustained its gradual recovery against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, March 1, appreciating by 2.94 per cent or N46.86 to sell at N1,548.25/$1, in contrast to the N1,595.11/$1 it was traded on Thursday. Also, in the spot market, the Nigerian currency improved its value against the Pound Sterling during the trading day by N90.13 to close at N1,956.06/£1 versus the previous day’s N2,046.19/£1 and against the Euro, it gained N76.39 to trade at N1,675.25/€1, in contrast to the N1,751.64/€1 it closed a day earlier. The supply of

Image
02-March-2024

Crude Oil Jumps 2% as Traders Sight Possible OPEC+ Cuts

By Adedapo Adesanya Crude oil appreciated by about 2 per cent on Friday as traders awaited a decision from the Organisation of the Petroleum Exporting Countries and allies (OPEC+) on supply agreements for the second quarter. Yesterday, the price of Brent futures went up by $1.64 or 2 per cent to $83.55 per barrel and the US West Texas Intermediate (WTI) futures rose by $1.71 or 2.19 per cent to $79.97 a barrel. For the week, Brent added around 2.4 per cent while WTI gained more than 4.5 per cent. Analysts noted that the expectation that OPEC+ is going to

Image
02-March-2024

NGX Indices Nosedive by 1.23% as Traders Resume Profit-Taking

By Dipo Olowookere The bears made a quick return to the Nigerian Exchange (NGX) Limited after leaving the stage for the bulls for a day as investors reassessed the impact of the hike in the benchmark interest rate by the Central Bank of Nigeria (CBN) on Tuesday on their investments. On Friday, the key performance indicators of the bourse closed lower by 1.23 per cent as a result of renewed selling pressure, especially in the energy and industrial goods sectors. Business Post reports that at the close of transactions on the first trading session of March 2024, the industrial goods