Telecom
MTN Nigeria releases unaudited results, posts 566.95bn revenue in six months
MTN Nigeria Communications Plc has released its unaudited result for the six months ended June 30 and announced an interim dividend of N2.95 per share to its shareholders.
The company disclosed this through its unaudited results for the six months ended 30th June 2019, released on Friday in Lagos.
Commenting on the report, Ferdi Moolman, CEO, MTN Nigeria, said: “In the first half of 2019, we sustained a solid performance, delivering double-digit growth in service revenue, underpinned by growth in voice and data revenue.
“We added 3.3 million customers to our network, increasing our subscriber base to 61.5 million.
“Pleasingly we saw data subscribers increase in the period by 2.1 million to 20.7 million.
“We made significant network investments to improve network quality and expand our 4G coverage.
“Our recent work to revamp our data prices and accelerate our 4G network has put us in a strong competitive position to offer more value to our customers, supporting data and voice revenue growth which will ultimately strengthen our business.
“We are pleased with obtaining a super-agent license from the Central Bank of Nigeria, which will enable us to build an agent network and accelerate the growth of our finTech business.
“In May, MTN Nigeria was successfully listed on the Nigerian Stock Exchange (NSE), making us the first mobile network operator to list on the NSE.
“The listing demonstrates our commitment to the Nigerian market and provides local investors with an opportunity to participate in and benefit from the company’s growth prospects.
“We made changes to our Board following the retirement of six pioneer Non-Executive Directors on the expiration of their tenure and in compliance with applicable corporate governance codes.
“We express our heartfelt appreciation to our out-going Directors for their contributions to the success of the Company. We also welcome the incoming ones whose combination of extensive experience across the worlds of technology, Finance, regulatory and policy development and corporate governance offers a hugely synergistic set of skills that will be of great benefit to us as we move into a new phase of growth.
“Our Chief Financial Officer (CFO), Mr. Adekunle Awobodu has also indicated his intention to resign from the position of the CFO of the company in H2 of 2019 for Family related reasons.
“The identification of a suitable successor has reached an advanced stage to facilitate a seamless transition. To ensure continuity on certain projects, Mr Awobodu has graciously accepted to continue to support the company on consultancy basis.
“The Board extends its appreciation to Mr. Awobodu for his contributions to the growth of the company.
“In line with our dividend policy guidance at listing, the Board has approved a maiden interim dividend as a listed company, of N2.95 kobo per share to be paid out of distributable net income.
On the operational review, Moolman said, “MTN Nigeria delivered a solid performance, with strong voice (+11.4%) and data revenue (+31.7%) driving double-digit service revenue growth and Further improving the margin on earnings before interest, taxation, depreciation and amortization (EBITDA).
“Voice revenue growth was supported by an increase in subscribers (+5.7%), relatively stable tariffs and our Focus on pro-consumer activities. This was boosted by our targeted customer value management (CVM) initiatives.
“Data revenue growth was driven by an increased number of smartphones on the network, greater data usage and growth in the number of active data users.
“We added 2.5 million smartphones, increasing smartphone penetration by 2.1pp to 39.2%. Active data subscribers increased by 11.0% to 20.7 million and data traffic rose by 67% YoY.
“Our Fintech business continued to gain momentum with 21.2% growth in revenue YoY.
“The super-agent license will allow us to leverage our established distribution channels to offer a wide range of mobile Financial services. We will continue to work forwards obtaining a Payment Service Banking license that we applied For in late 2018. Digital revenue continued to be impacted by the optimisation of value-added services (VAS).
“However, our focus is to build a sustainable base of active digital users in order to boost revenue growth.
“Our enterprise business also delivered satisfactory results, with revenue increasing by 31.3% to contribute 11.9% to service revenue.
“We recorded an EBITDA margin of 53.8% on account of the implementation of IFRS 16.
“On an IAS 17 bass, operating expenses increased by 9.7%, below inflation. The 1.5pp improvement in the EBITDA margin was supported by a stable naira against the US dollar benefiting our operating expenses as well as lower digital expenses arising From our VAS optimisation initiatives.
“Our bottom line remained strong with 30.9% and 34.8% growth in profit before and after tax respectively, while earnings per share increased by 34.8% to 486 kobo.
On the Corporate and legal matters, he stated “The hearing on the Attorney General of the Federation (AGF) matter, which was originally scheduled to hold on June 26, 2019 for commencement of trial on the substantive issue before the court was adjourned to October 29 and 31 2019. We remain resolute that MTN Nigeria has not committed any offence and will continue to defend this position.
“The redemption of MTN Nigeria’s Preference shares has always been envisaged as a necessary part of the simplification of our capital structure. The redemption process is underway and will be completed after necessary regulatory process.
“Our overriding priority for the rest of the year is to Focus on our BRIGHT strategy to build a sustainable business and create value for customers.
“We will continue to progress in the second half of the year making improvements to our network experience, subscriber growth and enhance operational efficiency.
“We expect lower data pricing and our acceleration of the 4G network expansion to bolster the acquisition of customers and data traffic volumes in the second half.”
Telecommunications operators have called on the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Communications Commission (NCC) to establish a clear regulatory framework for airtime and data credit services, warning that millions of Nigerians could face fresh disruptions if the agencies fail to coordinate their responsibilities.
Gbenga Adebayo, chairman, ALTON
This is coming on the heels of the Federal High Court judgment affirming the FCCPC’s authority to regulate consumer protection in the airtime and data credit market while preserving the NCC’s exclusive mandate over telecommunications licensing and technical regulation.
The ruling effectively clarified that both regulators have complementary roles rather than overlapping powers.
Association of Licensed Telecommunications Operators of Nigeria (ALTON), said the judgment should serve as the basis for stronger collaboration between the two regulators to avoid the regulatory uncertainty that earlier forced operators to suspend airtime and data credit services.
Gbenga Adebayo, chairman, ALTON, said the industry was not disputing the authority of either regulator but was seeking a clearly defined operational framework before any further regulatory actions are taken.
“The court has done something important. It has confirmed the FCCPC’s authority and, in the same breath, affirmed that the NCC’s role is preserved. Concurrency means coexistence. The industry now expects both regulators to establish the coordination framework that the court’s reasoning requires,” Adebayo said.
He stressed that regulatory certainty had become critical because millions of Nigerians depend on airtime and data credit services for daily communication.
“Forty million Nigerians depend on these services. The court has made clear that both regulators have a role. The industry is asking them to define how that works before any action that could disrupt access again,” he stated.
Adebayo also urged both agencies to engage industry stakeholders before introducing measures capable of affecting consumer access to the services.
According to him, the Presidential Enabling Business Environment Council (PEBEC) directive requiring Regulatory Impact Assessments before major policy changes should be observed to minimise unintended consequences on businesses and consumers.
The renewed call comes months after major mobile network operators temporarily suspended airtime and data borrowing services following the implementation of the FCCPC’s Digital, Electronic, Online and Non-Traditional Consumer Lending (DEON) Regulations, a development that affected millions of subscribers nationwide.
In its judgment, the Federal High Court held that while the FCCPC has powers over competition and consumer protection issues in the digital lending ecosystem, it cannot assume the NCC’s statutory responsibility for licensing telecommunications operators.
Justice Ambrose Lewis-Allagoa ruled that the two agencies must operate within their respective mandates, describing their relationship as one of “coexistence, not displacement.”
MTN Nigeria has warned customers to disregard fraudulent online posts claiming the telecom operator is offering “1 Month Free Data for Old Subscribers,” describing the promotion as fake and unauthorised.
In a statement shared on its X handle, the telco said the circulating promotion is not from MTN and is not affiliated with the company.
MTN urged customers not to click on the accompanying link in the online post or provide their phone numbers or personal information on any third-party website.
Customers are advised not to click on the link or provide their phone numbers or personal information on any third-party website.
“We will never require customers to submit their details on external platforms to claim data or any other reward,” MTN said.
The company added that all genuine promotions, products and services are announced only through its official communication channels.
“All authentic MTN promotions, products and services are communicated exclusively through our official channels, including www.mtn.ng, our verified social media pages and *180#,” the company said.
MTN also urged customers to remain vigilant against online scams designed to steal personal information, warning that fraudulent offers often impersonate trusted brands to deceive unsuspecting users.
“Don’t be the next victim!” the company said, reiterating that the purported “1 Month Free Data for Old Subscribers” offer is fake and not associated with MTN Nigeria.
National Industrial Court of Nigeria (NICN), sitting in Ikoyi, Lagos, has dismissed a Notice of Preliminary Objection filed by Pan African Towers Ltd. (PAT) in an employment dispute instituted by its former Managing Director and Chief Executive Officer, Mr. Azeez Amida.
The court also awarded ₦500,000 in costs against the company after holding that the application lacked merit.
Justice Essien, who delivered the ruling on July 21 in Suit No. NICN/LA/143/2025: Mr. Azeez Amida v. Pan African Towers Limited, held that the substantive case concerning Amida’s alleged outstanding contractual entitlements under a Mutual Separation Agreement should proceed to hearing.
The ruling effectively rejected the company’s attempt to terminate the proceedings on jurisdictional grounds.
Jurisdictional Challenge Rejected
Pan African Towers had argued that the National Industrial Court lacked jurisdiction to entertain the matter because the Mutual Separation Agreement executed between the parties required disputes to first pass through negotiation, mediation and arbitration before litigation could be initiated.
The company maintained that Mr. Amida failed to exhaust those contractual dispute resolution mechanisms before approaching the court.
However, Justice Essien rejected the argument after examining evidence presented by the claimant showing that several attempts had been made to activate the agreed dispute resolution process before legal proceedings commenced.
According to the court, documentary evidence showed that Mr. Amida, through his solicitors, issued correspondence and formal demand letters aimed at resolving the dispute amicably in line with the terms of the agreement.
The court found that rather than engaging with those efforts, Pan African Towers failed to meaningfully participate in the process and later sought to rely on the same contractual provisions to challenge the court’s jurisdiction.
Evidence Considered by the Court
According to evidence presented by Mr. Amida’s legal team, the court considered correspondence involving senior officials of Pan African Towers and its investors.
Among the documents relied upon was a letter allegedly written by the Chairman of the Board of Pan African Towers and Partner at Development Partners International (DPI), Mr. Adefolarin Ogunsanya, rejecting the demand made by Mr. Amida’s legal representatives for an amicable resolution before litigation.
The claimant’s legal team also tendered multiple email communications allegedly sent from January 2025 to Verod Capital Management’s in-house legal counsel, Mr. Dipo Okuribido.
According to the claimant, those emails did not receive any response before the commencement of the suit.
Based on the evidence before it, the court held that the conduct of Pan African Towers was inconsistent with reliance on the contractual dispute resolution provisions.
Justice Essien ruled that the company had effectively waived its right to insist on arbitration after frustrating the preliminary dispute resolution process contemplated by the parties’ agreement.
The court consequently held that Pan African Towers could not rely on the arbitration clause to prevent the court from hearing the substantive claims.
Court Awards Costs
Having dismissed the Preliminary Objection, the National Industrial Court awarded costs of ₦500,000 against Pan African Towers.
The court described the objection as lacking merit.
Substantive Defence Yet to Be Filed
The ruling represents the first judicial determination in the employment dispute.
The claimant’s legal team noted that since the suit commenced, the principal response filed by Pan African Towers had been the Preliminary Objection challenging the jurisdiction of the National Industrial Court.
According to the claimant, the company has yet to file a substantive defence addressing the merits of the claims relating to the alleged outstanding contractual entitlements.
With the dismissal of the jurisdictional challenge, the matter will now proceed to hearing on its merits.
The court adjourned the substantive suit until Jan. 12, 2027.
Background to the Dispute
The dispute arose following Mr. Amida’s departure from Pan African Towers after both parties executed a Mutual Separation Agreement.
According to the claimant, while the agreement governed the terms of his exit from the company, certain contractual entitlements remained unpaid.
His legal representatives said they initially sought to resolve the dispute through the mechanisms provided under the agreement by engaging the company through correspondence and formal demand letters.
When those efforts failed to produce a resolution, they commenced proceedings before the National Industrial Court seeking payment of the outstanding contractual entitlements.
Rather than filing a substantive defence to the claims, Pan African Towers challenged the jurisdiction of the court, arguing that arbitration and other dispute resolution mechanisms had not been exhausted.
The National Industrial Court has now rejected that position.
Related Commercial Litigation
The employment proceedings are separate from ongoing commercial cases before the Federal High Court involving Mr. Amida, Development Partners International (DPI), Verod Capital Management and other parties.
Those proceedings relate to issues concerning the ownership of Pan African Towers and remain pending before the courts.
The National Industrial Court noted that those matters would be determined independently based on their respective facts, evidence and applicable legal principles.
Legal Team Reacts
Reacting to the ruling, representatives of Mr. Amida’s legal team welcomed the decision.
“The Court has affirmed an important principle of contractual dispute resolution.
“A party cannot frustrate the agreed process and later seek to rely on that same process to prevent a claim from being heard.
“We now look forward to presenting the substantive case before the Court,” the legal team said.
The lawyers acknowledged that Pan African Towers retained the right under Nigerian law to pursue any available appellate remedies but stated that they were fully prepared for the substantive hearing scheduled for January 2027.
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