Telecom

Is MTN Being Shaken Down By Buhari’s Government?

Published

7 years ago

September 17, 2018

Comms Week

President Muhammadu Buhari

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Nigeria’s costly claims against the South African company raise questions about investment security in Africa’s largest economy, according to Peter Fabricius, a consultant with Institute for Security Studies (ISS)

ISS partners to build knowledge and skills that secure Africa’s future.

Fabricius said that there’s something suspicious about the two large and unexpected charges Nigerian President Muhammadu Buhari’s government has just imposed on the largest cellphone operator in the country, South Africa’s MTN.

“Last month the Nigerian central bank ordered MTN to return US$8.1 billion in dividends it allegedly illegally transferred out the country between 2007 and 2015. The bank also slapped US$16 million in fines on several foreign banks for facilitating these transfers.

Then the attorney-general’s office demanded US$2 billion in back taxes from MTN, which vowed it was innocent of all the charges and would vigorously oppose them. The double whammy helped knock MTN’s share price by about a third, boosting shareholders’ losses to well over R100 billion since the start of 2018.

Coming on top of the US$5 billion fine – later negotiated down to US$1.7 billion – that Nigeria hit MTN with two years ago for failing to disconnect unregistered subscribers, this has raised questions about the motives of Buhari’s government.

He faces a difficult re-election campaign in February. A major part of his mandate from his first election in 2014 was to combat corruption and enforce financial regulations. So is clamping down on MTN a genuine attempt to improve governance? Or is it more about fleecing an easy target – a rich foreign company – when low oil prices and mismanagement of the economy have slashed revenue and badly depleted foreign reserves?

There are good reasons to be sceptical about the hit on MTN. For one thing, as Dobek Pater, director of business development at Africa Analysis, told Biznews, how was it that the Central Bank of Nigeria and the tax authority failed to detect both the allegedly illegal transfer of dividends and the failure to pay tax for so many years?

He said this suggested either a failure by the Nigerian authorities to do their job of monitoring such large financial movements, or a deliberate laxness. If the latter, why did they suddenly decide to enforce the regulations now? It also seems improbable, merely on face value, that after being hit with that huge fine two years ago, MTN would have flouted the regulations again so soon.

Pater noted that other mobile phone operators in Nigeria had not come under the same scrutiny as MTN, which was an ‘easy target’ because it was profitable and because its operations were transparent, unlike some other mobile phone operators in the country. Also, no doubt, because it’s foreign.

Vestact CEO Paul Theron told Bloomberg that Nigeria’s move was ‘pathetic, nationalistic and immature’ and could ‘severely weaken Nigeria’s economy in the years to come’. MTN has been among the most committed foreign investors in recent decades, the money manager said.

Nigeria’s move has also cast doubt on MTN’s plans to list on the Nigerian stock exchange which it promised to do after the fiasco two years ago. Pater told Biznews he thought it unlikely that MTN would want to list in Nigeria under the cloud of alleged flouting of regulations and with its share price at home so far down.

Alastair Jones, an analyst at the London-based New Street Research, told South Africa’s Business Times that if MTN failed to avoid the huge claims, the listing might never occur, as this would raise questions about MTN Nigeria as a going concern.

Pater told Biznews that perhaps the Nigerian government was trying to get its house in order, adding that ‘from history, MTN does not have a squeaky clean reputation, and there have been some transgressions in the past’.

But if indeed the Nigerian authorities were merely shaking down MTN to replenish the country’s foreign exchange coffers and plug the holes in the budget, as some were alleging, this could harm the country’s investment prospects in the long term.

MTN would probably not decide to exit Nigeria this time, as the country remained a big earner for it. It provides the largest number of subscribers – about 27% of the total in the 23 countries where it operates across Africa and the Middle East. Nigeria also earns MTN some 25% of its total revenue, second only to its earnings in South Africa.

And Pater pointed out that while the South African market was mature, Nigeria’s was still growing. Even so, if the company continued to be hit by such large penalties, it might eventually reconsider the viability of its Nigerian investment, he said.

It was likely that another large operator would then move in to take MTN’s place. Pater suggested though that Nigeria would be lucky to find another mobile phone operator with the same commitment to the country as MTN. And potential new investors with no existing commitments to Nigeria would be discouraged.

Atiku Abubakar, a former vice president who is running against Buhari for the main opposition People’s Democratic Party next year, told Bloomberg the way the central bank had targeted MTN would only serve to discourage foreign investors.

‘Even in a worst-case scenario where there were breaches of financial laws and regulations, there are much better ways to deal with it than by the public exposure that MTN has been subjected to,’ Abubakar said. ‘It is bound to send the wrong signal to foreign investors.’

The saga is already affecting investment prospects, it seems. Alan Pullinger, CEO of FirstRand, which is managing the Nigerian listing for MTN, told Business Times that MTN’s experience had made his group more cautious about doing an acquisition in Nigeria.

For some analysts and investors, MTN’s high-profile experience has only served to advertise the hazards of investment in Africa and reinforce an opinion – some would say a prejudice – that Africa as a whole is not a safe destination for one’s money.

David Shapiro, deputy chairman of Sasfin Wealth, told Business Day that the news reinforced his ‘sceptical’ stance towards investments in Africa. Despite the continent’s potential, ‘you have governments, and I must include SA, that are largely unpredictable’.

For the short-term gain of re-election next year, it seems, Nigeria is risking ‘killing the geese that lay the golden eggs’, as Pater warned.”

Peter Fabricius, ISS Consultant

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Telecom

Transforming Lives Through Advocacy: Princess Omoyemwen Inspires Change at MTN’s Go MAD Activation in Benin

Published

20 hours ago

March 17, 2025

Ugo Onwuaso

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MTN Nigeria brought its Go M.A.D (Go Make A Difference) campaign to Benin City at 360 Lounge in GRA on Saturday, March 15, with a fusion of inspiration, culture, and digital experiences.

The Go M.A.D campaign, which has journeyed through cities like Abuja, Enugu, Calabar, and Ibadan, is designed to celebrate and support Nigerians who are creating positive change in their communities. In Benin, the campaign stayed true to its mission, one of the most moving highlights at this event was the Icons of Impact session, where local changemakers shared their personal stories of transformation and service.

For local changemaker Princess Omoyemwen Adeyinka Afolabi, a sports enthusiast, life coach, and culture advocate, the MTN Go MAD (Go Make A Difference) message resonated with her journey. She’s proving that one smile, one act of kindness, and one person’s commitment to change can spark a ripple effect across an entire community. “Since 2006, I’ve been going into public schools, meeting students who can’t afford to dream big, let alone pay school fees. Sports gave me a future, and I knew I had to pass that on.”

From helping school children stay in school through mentorship and scholarships, to launching the A Child, A Skill Initiative, to founding the Edo Heritage Sports Festival and Carnival, her work blends education, sports, and cultural identity in a way that’s both inspiring and deeply impactful. Through the MTN Go MAD platform, her story shines a light on what it means to truly “make a difference” especially in tough times.

At the heart of her work is a simple philosophy: putting a smile on one child’s face can set off a ripple effect of hope, strength, and change, and MTN has remained a consistent supporter of her journey. Princess’s journey, amplified by MTN’s Go MAD campaign, is a reminder that the most powerful changemakers don’t always start with grand gestures, they start with heart.

MTN’s Go MAD campaign has already been activated in Abuja, Enugu, Calabar and Ibadan. Benin was another step in MTN’s mission to support and empower everyday changemakers.

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Telecom

Bridging Nigeria’s Digital Divide: ITU and UK-FCDO Fuel Rural Connectivity Revolution

Published

20 hours ago

March 17, 2025

Ugo Onwuaso

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Mr. Yomi Arowosafe, Secretary of the Universal Service Provision Fund (USPF) of the Nigerian Communications Commission (NCC), has commended the International Telecommunication Union (ITU) and the United Kingdom Foreign, Commonwealth & Development Office (UK FCDO), for their collaboration with Nigerian government to deepen rural connectivity for socio-economic development of the country.

L-R: Nigeria National Consultant, International Telecommunication Union (ITU), Ogundipe Olubunmi; Permanent Secretary, Federal Ministry of Communications, Innovation and Digital Economy (FMoCIDE), Faruk Yabo; Hon. Minister, FMoCIDE, Dr. Bosun Tijani; Executive Vice Chairman/Chief Executive Officer, Nigerian Communications Commission, Dr. Aminu Maida; Secretary, Universal Service Provision Fund, Yomi Arowosafe and West Africa Area Representative, ITU, Ali Badiel, during the Industry-focused Stakeholders Engagement Session organised by the USPF of the Commission in collaboration with ITU and United Kingdom Foreign, Commonwealth & Development Office (UK FCDO), in Lagos on Thursday (March 13, 2025).

Arowosafe gave the commendation at an Industry-Focused Stakeholders Engagement Session which was organised in Lagos over the weekend by the USPF in in collaboration with the UK FCDO and the ITU. The session built on USPF’s ongoing efforts to facilitate the achievement of wide network connectivity coverage in unserved and underserved communities across Nigeria.

The event was attended by the Hon. Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani; the Permanent Secretary of the Ministry of Communications, Innovations and Digital Economy, Faruk Yabo; the Executive Vice Chairman of Nigerian Communications Commission, Dr. Aminu Maida; Chief Executives of telecommunications companies, State ICT commissioners, notable industry players, trade associations, development partners, key speakers, distinguished guests and staff of both NCC and the USPF.

The Minister spoke on the commitment of President Bola Tinubu to provide enabling policy directions and initiatives towards ensuring greater connectivity in Nigeria to transform the socio-economic development of Nigeria while the NCC boss, Maida emphasized the Commission’s resolve to continue to back all USPF projects through effective regulatory measures that help in accelerating deployment of necessary digital infrastructure that support the achievement of the Federal Governments’ priority areas and ministerial blueprint.

Speaking at the event, the Arowosafe said the engagement reflected the USPF’s shared vision and commitment to expanding inclusive connectivity and that the presence of all other stakeholders at the event underscored the vital role of collaboration in achieving the goal.

He said the theme of this workshop, “Fostering Connectivity in Unserved and Underserved Communities: Collaborating for Sustainable Growth”, highlighted government’s dedication to bridging the digital divide, in alignment with NCC’s Strategic Focus Areas, the Ministry’s Strategic Blueprint, and Presidential Priority Areas.

“Together, we have the power to create sustainable and inclusive pathways to ensure no community is left behind. Achieving this requires strong partnerships among government, private sector, non-governmental organisations (NGOs), development partners, and community leaders. By sharing insights and resources, we can design tailored solutions that address both immediate and long-term connectivity challenges,” he said.

The USP Secretary stated that ahead of the session, the USPF gathered input from stakeholders through questionnaires. He said the responses obtained shaped the panel discussions, focused on key strategies to foster connectivity through collaboration and partnerships, strengthen capacity building and security, and explore innovative funding mechanisms for sustainable connectivity.

He said the engagement, thus, offered a platform for robust dialogue and practical solutions that address our unique challenges and help improve telecommunications access in underserved regions, while encouraging participants to actively participate, share their expertise, and contribute to shaping outcomes that will strengthen the nation’s digital ecosystem and improve the lives of all Nigerians.

“This event marks the beginning of a collective journey toward a more connected, inclusive, and prosperous Nigeria. USPF is proud to lead this effort, and we look forward to what we can accomplish together,” he said.

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Telecom

Airtel Launches AI Spam Alert in Nigeria

Published

3 days ago

March 15, 2025

Comms Week

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Airtel, one of Africa’s leading telecommunications providers, has launched a groundbreaking Artificial Intelligence (AI)-driven Spam Alert Service in Nigeria, aimed at tackling the growing issues of spam messages and fraud.

Airtel Launches AI Spam Alert in Nigeria

Speaking at the launch event held in Lagos, Dinesh Balsingh, Managing Director of Airtel Nigeria, revealed that the innovative service will be rolled out across Airtel’s 14-country footprint.

Notably, Airtel subscribers in Nigeria can access the service at no additional cost.

The AI-powered solution detects and alerts users in real-time about suspected spam SMS, safeguarding them from potential fraud and cyber threats.

Highlighting the company’s commitment to technology-driven customer solutions, Balsingh said, “this is a game changer for the telecoms industry in Africa and as we move forward, we will continue to address customer challenges through proactive tech-driven solutions.”

The service is built on a proprietary dual-layer protection system that analyses over 250 parameters, including sender behavior, SMS frequency, and target location patterns.

Capable of filtering over 1.5 billion messages within two milliseconds, it also features a centralised database of blacklisted URLs to warn users about suspicious links.

“With the launch of this AI-powered Spam Alert Service, Airtel Africa has reaffirmed its commitment to delivering innovative solutions that enhance customer experience, safety, and digital inclusion across the continent.

“As Airtel continues to expand its footprint, it is expected that this pioneering solution will set a new standard for the telecoms industry in Africa.

“Also, as the digital landscape continues to evolve, Airtel Africa remains at the forefront, pushing boundaries and shaping the future of telecommunications in Africa,” said Balsingh.

He emphasised that as Airtel continues to expand, the pioneering solution will set new benchmarks for Africa’s telecom industry.

The initiative has received commendation from key stakeholders, including Dr. Bosun Tijani, minister of Communications, Innovation, and Digital Economy.

Dr. Tijani lauded Airtel’s efforts in boosting Nigeria’s technology ecosystem, particularly through solutions that enhance online security and foster digital inclusion.

Similarly, Dr. Aminu Maida, executive vice chairman of the Nigerian Communications Commission, hailed the service as a major step in addressing the security challenges faced by telecom subscribers.

As the digital landscape evolves, Airtel Africa continues to push the boundaries of innovation, shaping the future of telecommunications across the continent.

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