Telecom
FG Targets MTN for Cash as Buhari Govt. Tightens Rules Ahead 2019 Elections- Expert
The many troubles of MTN group in Nigeria may both economic and political play the federal government of Nigeria, according to Ron Klipin, an analyst at Cratos Wealth in Johannesburg.
Klipin, was reacting as federal government has slammed MTN Nigeria with a $2 billion tax demand.
This is another curve ball directed at Africa’s biggest wireless carrier less than a week after it was ordered to refund $8.1 billion in illegally repatriated funds.
Klipin in a chat with Bloomberg said about the fines that “This could be an economic and political play by Nigeria”.
“The Nigerian economy is looking for additional sources of revenue and at the same time the government wants to be seen as tightening up the regulatory framework in the country.” Klipin added.
The additional scrutiny on MTN comes as President Muhammadu Buhari seeks re-election for a new four-year term in a February vote.
Buhari
His administration has pledged to fight corruption in Africa’s most populous nation, including tax avoiders and companies acting unscrupulously.
MTN continues to strenuously deny the allegations being made by the Central Bank of Nigeria and has provided further clarity on the company’s position.
MTN on its own said it had been in talks with Abubakar Malami, Attorney-General, over concerns around tax compliance; but it was billed all the same.
The company in a statement said it was billed for importation of foreign equipment and payments to foreign suppliers, all spread across a period of about ten years.
MTN outlined the tax dispute and refuted both accusations in a statement on Tuesday, yet faces an uphill battle to convince investors it won’t end up shelling out for either or both offenses in its largest market. The shares extended their slump, falling 17 percent to an almost 12-year low by the close in Johannesburg.
“We remain resolute that MTN Nigeria has not committed any offenses and will vigorously defend its position,” the Johannesburg-based company said.
The office of Nigeria’s attorney general calculated that MTN owes $2 billion related to the import of foreign equipment and payments to suppliers over the past decade.
It asked the South African company to carry out a self-assessment in response, but last week rejected the company’s findings, which concluded that it had owed — and paid — $700 million.
MTN reported the ongoing dispute for the first time Tuesday.
Last week, the Nigerian central bank told MTN to return funds it alleges the company illegally transferred out of the country over eight years through 2015.
That accusation put the carrier’s planned share sale in Lagos in jeopardy, while the sanctions may restrict its ability to pay dividends.
On the CBN allegations, MTN said that it is both regrettable and disconcerting that despite the historic engagements with the Nigerian authorities by MTN Nigeria, the senate investigation into the CCI matter, and the multiple tax assessments done by the Nigerian tax authorities over many years that were satisfactorily concluded, that these matters are being reopened.
Tobe Okigbo MTN Corporate Relations Executive said: “From the CBN’s own letter and subsequent statements, it is clear that there is no dispute that the capital captured in MTN’s books and for which CCIs were issued was imported into Nigeria, and this is acknowledged explicitly by the CBN.
It is equally clear that Nigerian law provides for guaranteed unconditional transferability of funds through an Authorised dealer in freely convertible currency relating to dividends or profits attributable to the investment, payments and in respect of loan servicing where a foreign loan has been obtained.”
He went on to say: “All dividend repatriation done by MTN Nigeria to its shareholders was done on the basis of its equity capital and all the historic dividends were declared against valid equity CCIs and in fact no preference dividends were declared and no interest in respect of these preference shares was paid. This means that it is incorrect to suggest that the conversion of a shareholder loan to preference shares has any relation to the repatriation of dividends. The two are simply not connected and we are trying to understand this position that the Central Bank has taken.”
Speaking on the Attorney General’s ‘demand notice’ for historical tax obligations, Mr Okigbo said: “MTN has conducted a detailed review of these claims, and provided evidence of tax remittance to the Attorney General’s office.
The Attorney General’s notice indicates that he is rejecting this evidence. We believe that all taxes due to the Nigerian government have been paid and these allegations have not been raised by any of the revenue generating agencies that MTN engages with regularly, and from whom MTN has received numerous awards for compliance.”
MTN Nigeria will continue to engage with the relevant authorities on all these matters and we remain resolute that MTN Nigeria has not committed any offences and will vigorously defend its position.
Update on the CBN letter on foreign exchange
MTN Group and the original shareholders injected a total of $402, 625,419 into MTN Nigeria between 2001 and 2006 in the form of loans and equity.
These initial inflows were the basis for the issuance of various legacy CCIs obtained from Authorized Dealers in accordance with regulations. The inflow of capital has been confirmed by the CBN.
The CCI process is essentially in place both for the protection of investors as well as to provide the CBN with documentary evidence for monitoring capital inflows and outflows. Although over time the CCIs have been re-issued, consolidated and re-constituted to reflect the changing MTN capital and shareholding structure, the amount of 402, 625,419, has remained the same.
One aspect of the changing capital structure was the conversion of shareholder loans to preference shares. It is important to note that all the historic dividends were declared against valid equity CCIs and in fact no preference dividends were declared and no interest in respect of these preference shares was paid.
The Attorney General’s notice of intention to recover tax
The Attorney General notified MTN that his office made a high-level calculation that MTN Nigeria should have paid approximately $2,0 billion in taxes relating to the importation of foreign equipment and payments to foreign suppliers over the last 10 years and he requested MTN Nigeria to do a self-assessment of the taxes in this regard that have been actually paid.
In August 2018 MTN submitted comprehensive documentation to the office of the AG. MTN Nigeria has also completed an initial assessment of the full period which indicates that total payments made to the tax authorities in regard to these foreign imports and payments in aggregate are $700 million.
There are valid reasons for the differences between the actual payments and the AG high-level assessment.
We were notified by the office of the AG last week that they have not accepted the documentation presented and they have given notice of an intention to recover the $2.0bn from MTN Nigeria.
Based on the detailed review performed MTN Nigeria believes it has fully settled all amounts owing under the taxes in question.
The rebranding of 9mobile to T2 is a key milestone within the company’s comprehensive four-phase recovery roadmap—Stabilisation, Modernisation, Transformation, and Growth—launched following the landmark 2023 acquisition of 9mobile by Lighthouse Telecoms, led by business leader and investor, Mr. Thomas Etuh.
Since the takeover, the company has made sweeping changes, including the constitution of a revitalized board, appointment of new executive leadership, and execution of a strategic infrastructure-sharing agreement with MTN Nigeria. This agreement, the first of its kind at scale in the country, has already led to the company significantly expanding its network coverage, capacity, and resilience nationwide.
Now entering the “Transformation” phase, the brand is embracing a new name, T2, and a new ambition: to lead in innovation, customer experience, and digital lifestyle enablement. The T2 identity reflects a forward-thinking, technology-driven, and customer-centric ethos designed to resonate with Nigeria’s increasingly digital and mobile-first population.
“This is not just a logo change, it’s a total evolution of who we are, why we exist, and how we deliver value,” said Obafemi Banigbe, Chief Executive Officer of 9mobile. “T2 represents our next chapter. It is a symbol of our renewed commitment to innovation, resilience, and a deepened focus on customer experience. We are building a brand that is ready to thrive in the digital economy.”
Thomas Etuh, Chairman, Emerging Markets Telecommunications Ltd, echoed similar sentiments, describing the occasion as one that is significant in many respects for the 9mobile brand, as it represents the start of a new phase of life, a fresh start, rebirth, change or transformation, growth, reawakening, and a new order.
“Today marks a new beginning for the 9mobile business. The march has been tedious. The journey has been exhausting. It was faith and love for country that prompted my foray into the acquisition of the 9mobile business. I knew it was a tough call,” Etuh said, and thanked stakeholders like the Nigeria Communications Commission (NCC) and 9mobile customers for standing by the brand through all its trials and challenges, including multiple litigations.
“To our amazing customers, please accept my profound gratitude for believing in us. I know our challenges have impacted you in one way or the other. But there is a resilient spirit we share with you. We are rising together again. Together, with you, we are reclaiming all lost grounds,” Etuh said.
Also speaking at the event, the Minister for Communications, Innovation and Digital Economy, Dr. Bosun Tijani, commended T2 for its bold move and vision to invest in the Nigerian economy and counselled that the rebranding should go beyond a change of name.
“My message to T2 (formerly 9mobile) is simple – let this rebrand be more than a change of colours or new logo, but let it be a renewed commitment to innovation, to service excellence and to the millions of Nigerians whose lives and businesses depend on your network every single day. Our government will continue to work with ecosystem players like T2 who are bold enough to invest, agile enough to adapt and visionary enough to see that the future belongs to those who embrace change before it’s forced upon them,” he said.
Speaking in the same vein, the Secretary to the Lagos State Government, Barr. Bimbola Salu-Hundeyin, who represented Governor Babajide Sanwo-Olu, affirmed the alignment between T2’s mission and the state’s digital goals.
“T2 has come at the right time. Its focus on digital innovation aligns seamlessly with the Lagos State Government’s vision for a robust digital economy that empowers citizens, businesses, and communities. We welcome partners like T2 who are committed to driving inclusive and transformative growth in our state,” she said.
The transition will be rolled out in deliberate phases, ensuring continuity and seamless service for existing customers while gradually introducing the market to the T2 narrative. At its core, T2 will focus on four key pillars: Speed, Smart Living, Digital Lifestyle, and Trust.
With customer expectations evolving rapidly and technology redefining the rules of engagement, the T2 brand aims to serve as a bridge between connectivity and culture, telecommunications and lifestyle, infrastructure and impact.
As the Nigerian telecoms sector moves into a new decade of transformation, T2 is poised to not just participate, but to lead.
Primate Elijah Ayodele, leader of INRI Evangelical Spiritual Church, has released fresh prophecies regarding Nigeria’s telecommunication companies, including MTN, Airtel, and the newly reformed T2, formerly known as 9mobile.
Primate Elijah Ayodele
In a statement signed by Osho Oluwatosin, media aide to Primate Ayodele made it known that MTN will have challenges and run into a shortage.
He stated that he sees resignations from top officials in the company while warning of a potential network crisis that will affect the company negatively.
“MTN: They will have challenges that will disorganize them and make them run into a shortage. They will want to carry out expansion, but some of their major cables will be damaged, and I see some of their officials resigning due to unexpected things that will be happening. MTN needs to be careful not to see situations of customers leaving the company. They will have serious network issues in September that people will be complaining about bitterly.”
For Airtel, Primate Ayodele warned the company to be careful of the board crisis, while revealing that they will face marketing issues at the grassroots level.
“Airtel: they must be careful so there won’t be any board crisis. They will want to step up in many ways, but there will be problems in the grassroots. The company’s marketing will have lots of issues in communicating to people at the grassroots level. Airtel will also have terrible network problems in November.”
For T2, Primate Ayodele stated that the company will start on a good ground, but they will not be able to achieve what was set out to be achieved.
He urged the company to look into some issues spiritually as he foresees a struggle to meet up with other telecommunication companies.
“T2: The company will start on a good footing, but there will be a lot of things they will want to do but will face problems. The crisis of the company isn’t yet over, it will be up and down, and the organization will struggle to surpass other telecommunication company. The new devices the company will introduce will still have problems, it’s an issue to be looked to spiritually. The company is ready to improve, but attaining improvement will create problems.”
Furthermore, the cleric stated that there will be more telecommunication companies in the country, stating that there will be a form of recapitalization and a new procedure that will disqualify some of the telcos.
“Generally, there will be more telecommunication companies that will come to challenge the existing ones. I am seeing the government introducing new codes and a form of recapitalization that will disqualify some companies. I am seeing a telecommunication procedure that will also disqualify some telcom companies.”
Telecom
MTN Nigeria’s Mega Billion Promo Turns Airtime into Fortune for Thousands Amid Economic Strain
MTN Nigeria is offering a refreshing dose of optimism through its Mega Billion Promo—a nationwide campaign designed to reward customer loyalty with real cash prizes.
Launched on June 23, the 90-day promo aims to create 195 millionaires and distribute over ₦1 billion in cash via MTN’s MoMo Payment Service Bank.
So far, more than 1,500 subscribers have won a combined ₦290 million, including three jackpot winners and 20 recipients of ₦5 million each.
“In the last couple of years, it’s been a very tough time for Nigerians,” said Onyinye Ikenna-Emeka, MTN’s Chief Marketing Officer.
“This Mega Billion promo is one of the ways we’re showing appreciation and making life better for our customers.”
MTN subscribers aged 18 and above can participate by dialing *900#, using the MyMTN app, or texting ‘MEGA’ to 900.
Every ₦100 recharge earns one point toward daily and Saturday draws. Recharges can be made via bank apps, VTU, MoMo, or USSD channels.
Prizes range from ₦25,000 to ₦5 million on weekdays, with a ₦10 million top prize available during Saturday’s Mega Draw.
Customers can win multiple times, and all winnings are paid directly into the winner’s MoMo wallet, which can be activated by dialing *671#.
Independent partners manage the promo to ensure transparency and fairness. Daily draws are broadcast live on MTN’s Instagram, Facebook, and YouTube pages, and winners are contacted directly via the MTN Call Center on 300.
MTN describes the initiative as part of its ongoing effort to appreciate customers and strengthen relationships.
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