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MTN Ready to List on NSE in Q2

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MTN is to list its Nigerian Business (“MTNN”), which is estimated to be worth about $6 billion, on the Nigerian Stock Exchange by next quarter.

 

The company has obtained shareholder approval for the listing and is in the process of seeking regulatory approvals.

 

Proshare said it “believe listing of the largest telecommunications company in Nigeria on the domestic bourse is a game changer for the equity market and as such, assess preliminary details surrounding the issue”

 

MTN Nigeria (MTNN) is a subsidiary of MTN Group South Africa (Africa’s biggest mobile phone operator) and the largest contributor to the group earnings accounting for about 33% of its revenue (5-year average).

 

According to the Nigerian Communications Commission (NCC), the telecommunications giant has a customer base of over 52 million subscribers, accounting for c.36% market share in the country.

 

MTNN began operations in 2001 after securing one of four GSM licenses offered by the Nigerian Government in a deal worth $285 million.

 

Since then, the Telco giant has so far made significant investment in its mobile infrastructure, with total assets worth over ₦1 trillion as at FY’16, and has enjoyed a decent level of return over the years.

 

MTNN offers cellular network access to its subscribers within Nigeria, with airtime and subscription accounting for 64% of revenue as at FY’16 and roaming services (International roaming services, including data roaming, in-flight roaming, and WiFi roaming services) making up the second largest contributor to revenue at 12%.

 

Currently, MTNN is controlled by MTN International (Mauritius) Limited (MTNI) with 75.8% ownership.

 

Also, 18.7% of its ordinary shares outstanding is held by Nigerian shareholders through special purpose vehicles.

 

In addition, 2.8% is owned by Mobile Telephone Networks NIC B.V and 1.8% owned by Public Investment Corporation SOC Limited.

 

Upon completion of the planned IPO, MTNN will be the first subsidiary of the MTN Group to be publicly listed on a stock exchange, though we note that the Group has announced its intentions to also list 35% of its Ghanaian business on the Ghana Stock exchange by the end of 2018.

 

 


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Telecom

Aside RoW, Other Roadblocks Hobble Telcos

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Ekiti, Kaduna, Imo, Katsina and Plateau states recently blazed the trail by implementing right of way (RoW) resolution of resolution of the Governors’ Forum in a bid to deepen broadband penetration in the country and promote a digital economy for a digital Nigeria.

Aside RoW, Other Roadblocks Hobble Telcosn

Right of way charge of per meter of fiber optics cabling is considered one of the most vexatious and biggest hindrances to growth in the industry

It is however, disheartening that some states have decided to disregard these resolutions and have, in some cases, increased the RoW charges by over 1,200 percent.

Experts believe that if all states in the country can implement the resolutions, it will facilitate digital literacy and accelerate broadband penetration across the country and also improve Nigeria’s Gross Domestic Product (GDP).

Apart from implementing the resolution on RoW, regulatory authorities must draw from its political will to prevail on the states and local governments to stop insisting on collecting taxes and levies on operators’ infrastructures such as base stations and masts.

The canker worm of multiple taxes by local, state and federal governments and their agencies is threatening the survival of the telecom sector.

At last count, the industry estimate they pay over N20 billion annually to various agencies of government.

Also, the problem of insecurity, which has assumed alarming proportions, is discouraging further investments.

Added to this, are the constant harassment, intimidation and killing of workers in the industry while equipment are stolen every day.

Another major problem is the thorny issue of Nigeria’s public power supply, which seems to have defiled all known solution.

A situation where telecom operators spend an incredible N45.9 billion (approximately $2.9 Billion) annual bill on diesels in running power supply to their infrastructure is unacceptable.

Power supply is like the nerve, in fact, the engine of production. The near absence of public power supply has a devastating effect on businesses and has forced many companies to close shop because they could no longer remain competitive.

Regulatory authorities must find appropriate way to communicate to governments at all level that the current RoW, tax, public power as well as state of insecurity cannot create a knowledge driven economy or so called new economy in which the generation and the exploitation of knowledge play the major part in the creation of wealth.


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Why Office was Withdrawn from NiDCOM- NCC

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Nigerian Communications Commission (NCC) has, again, clarified that Dr. Isa Ali Ibrahim Pantami, minister of Communications and Digital Economy, was never involved in the process of offer of office allocation to the Nigerians in Diaspora Commission (NiDCOM) at the NCC’s Communications and Digital Economy Complex located at Mbora District, Abuja, as the public is being made to believe.

Why Office was Withdrawn from NiDCOM- NCC

The Commission reiterated this position in a press statement signed by Dr. Henry Nkemadu, director Public Affairs, in which it made further clarifications to the members of public and other stakeholders on the situation.

“For the avoidance of doubt, the Honourable Minister of Communications and Digital Economy, Dr. Isa Ali Ibrahim Pantami, was never involved in the offer to the office space, nor in the withdrawal of the offer for same office space.  the Minister should not, therefore, be brought into the issue,” he said.

According to Dr. Nkemadu, the decision to withdraw the offer of office space from NiDCOM was purely of the NCC, the custodian of the office complex.

“It should, however, be made abundantly clear that the withdrawal of the offer of the office space, which was unconditionally given, in the first instance, to NiDCOM, was informed by exigencies and change in priorities within the NCC, which led to the taking back of the office space earlier allocated with intention of finding a suitable replacement for NiDCOM,” he said.

The Commission therefore reiterates its confidence in the leadership, person and office of the Honourable Minister of Communications and Digital Economy, Dr. Isa Ali Ibrahim Pantami


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MTN Nigeria Commences Payment of 2019 Company Income Tax Obligations

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MTN Nigeria has initiated payments for its 2019 Company Income Tax (CIT) obligations ahead of the statutory deadline of June 30th, in line with the request by the Federal Inland Revenue Service (FIRS) to corporate taxpayers whose operations are able to remain open during the COVID-19 pandemic.

As a result of constructive engagements with its Board and Management, MTN Nigeria agreed to continue its existing practice of initiating early payment for its CIT obligations.

In this regard, it has committed to making full payment in a series of instalments ahead of the June 30th deadline. As a demonstration of this commitment, it has made payment of the first instalment.

FIRS would like to thank MTN for this demonstration of support for Nigeria during a time of significant disruption to the nation’s economy, and also to MTN’s own business.

FIRS Chairman, Muhammad Nami is particularly happy with this prompt response by MTN Nigeria and urges other companies to emulate MTN Nigeria so that together we shall continue to support the growth of Nigeria’s economy as well as business enterprises in the country.

Commenting on the agreement, Ferdinand Moolman, ceo, MTN Nigeria said: “We value the relationship that we have built with the Federal Inland Revenue Service (FIRS) and are pleased to be able to deepen that relationship by collaborating closely with the government and its agencies to manage the challenge that COVID-19 represents to the nation.

“Conscious of the role companies’ play in sustaining government revenue and services, MTN has consistently initiated payments towards our CIT obligations well ahead of statutory deadlines and despite prevailing conditions.

“This year, the Board of MTN Nigeria has once again approved advance payments towards our annual tax obligations.”


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