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MTN and its FY2023 Financial Results Abracadabra

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By Abdullahi Taminu Bida

MTN Nigeria Communications Plc (MTN Nigeria), the leading telecommunication service provider in the country, on Thursday, 29 February, 2024, submitted its full-year audited report for the year ended 31 December, 2023 to the Nigerian Exchange (NGX). The report showed very impressive highlights like growths in total subscriber base, active data users, active mobile money (MoMo PSB) wallets, service revenue and earnings before interest, tax, depreciation and amortization (EBITDA). Despite all these positive highlights in the Statement of Accounts, the media and most analysts, as the MTN Nigeria would wish, ran with the forex loss of N740.4 billion as well as the loss before tax of N177.8 billion.

Karl Toriola, Chief Executive Officer, MTN Nigeria

According to MTN Nigeria, the losses are as result of “rising inflation, currency devaluation and foreign exchange shortages, complicated by geopolitical disruptions and cash shortages in Q1 arising from a redesign of the naira. Karl Toriola, the Chief Executive Officer of the company, noted that “MTN Nigeria’s operations are exposed to foreign currency volatility on its operating and capital expenditure. The most significant of these exposures relates to the tower lease costs, which comprised the bulk of the 45-50 percent foreign currency exposure in our operating expenses in 2023.” Specifically, the company attributed the poor financial performance for the year under review mainly to the foreign exchange loss of N740.4 billion as a result of a 96.7 percent movement in the exchange rate from N461/$1 in December 2022 to N906/$1 in December 2023.

From media reports many of the analysts seem to look at the MTN Nigeria’s 2023 Financial reports from the prism of the company – harsh operational environment, unfavourable government policies and the general macro-economic conditions. They seem to be so convinced by the jaundiced narrative the telecom company has deliberately crafted to hoodwink stakeholders to its side that they barely look at the submitted report critically.

To start with, MTN Nigeria listed on the floor of the Nigerian Exchange in 2019 as part of its bargain with the government to have its $5.2 billion fine, for failure to disconnect its subscribers who were yet to link their National Identification Numbers to their telephone lines, slashed. Prior to the listing, MTN Nigeria was a private company and had no disclosure requirements unlike now, as a publicly quoted company, it is required to meet the disclosure requirements including the submission of quarterly results.

Let us highlight some of the items as disclosed in the report. The Loss after tax was N137.0 billion due to net forex loss; Profit after tax (PAT), adjusted for the net forex loss, decreased by 14.3 percent to N344.5 billion; Earnings per share (EPS) declined to negative N6.38 kobo (N16.56 kobo adjusted for the net forex loss, down 14.1 percent); the Net loss for the year resulted in a depletion of its retained earnings and shareholders fund to negative N208.0 billion and N40.8 billion, respectively; the Capital expenditure (capex) increased by 13.2 percent to N571.0 billion; and the company’s liabilities and assets were N3.22 trillion and N3.18 trillion respectively.

The report, as indicated, showed that the company’s liabilities are bigger than its assets, an admission that MTN Nigeria is technically insolvent. The reality is that this insolvency would remain for a long time without shareholder funding and may trigger default. This also throws up the going concern questions. How can MTN Nigeria’s auditors sign off the on the going-concern assessment of the company with such reality – a case of financial illiteracy or poor oversight?

Also, the issue of lease agreements leaves plenty room for suspicion. Is attributing an item that, according to the company, constitutes 45-50 percent of its foreign currency exposure without naming the service provider a deliberate ploy to conceal pertinent facts? It is a known fact that MTN has large ownership stakes in the companies that provide these lease services and the ‘losses’ the company posts as a result of the forex fluctuations, it ‘gains’ in form of returns on investment.

Similarly, the report indicated that MTN Nigeria changed its “measurement” of FX loses from “realized FX differences on dollar indexed leased” to the N/US$ spot exchange rate at the end of each reporting period. This, it claims, is in line with the IAS 21 and FIRS 16 and led to adjustments of 2021 and 2022 results. Why would MTN Nigeria limit the restatement of its lease liabilities to 2021 and 2022 only and not 2020 and 2019 financials when it got listed on the NGX? It is also curious that forex for the H1 2023 was not restated – when objectively there was nothing that could have triggered the IFRS 16 treatment to be altered in H2. In fact, the report showed that MTN Nigeria did a restatement on the H1 FX related transaction that was undertaken in October 2023.

These may be pointers to a possibility of sharp practices and willful concealment on the part of MTN Nigeria in contravention of the extant disclosure rules of the Exchange. This possible concealment, probably aimed at avoiding tax liabilities and/or shareholder obligations, should be of interest to industry stakeholders, in particular and Nigerians in general. MTN Nigeria’s over two-decade operations in Nigeria leaves much to be desired as there have been cases that border around corporate governance such as tax defaults, illegal repatriations of profits and other corporate vices.

Abdullahi Taminu Bida, writes for Abuja


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VDL International Conference Emphasizes on Fostering Ethical Values in the Society

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Stakeholders at the Values for Daily Living International (VDLI) inaugural annual conference have recommitted to continuing efforts in promoting ethical values and moral principles, inspiring positive change in individuals and communities worldwide.

Group photograph of participants

The VDLI inaugural annual conference convened by Sandra Ani, was a resounding success, bringing together students, parents, scholars, educators, and community members to engage in meaningful discussions and celebrate achievements in value-based education.

The conference, held at the at The Parliament Hall, Post Primary School Management Board, Enugu State, attracted more than 1000 participants from various sectors, including education, business, healthcare, and government online and on-site.

The theme, “Take It Back: Building Today for a Greater Tomorrow” resonated deeply with attendees and speakers alike.

Prof. Peter Ndubueze Mbah (Ph.D.), the Hon. Commissioner of Education, Enugu State, in his keynote address emphasized the importance of integrating core values into every aspect of life, from personal interactions to professional endeavors.

He highlighted the need for a collective effort in nurturing a society grounded in respect, empathy, and honesty.

Throughout the conference, participants engaged in a series of interactive workshops, panel discussions, and networking sessions.

During the panel session, discussants reiterated the role of the church, school, and home in restoring values to society was a key topic of the panel discussions.

This interactive session provided deep insights into shared responsibilities in moral value restoration.

These narratives provided a powerful reminder of the impact that integrity and compassion can have on society.

Feedback from attendees was overwhelmingly positive, with many expressing a renewed commitment to fostering values in their personal and professional lives. “This conference has reignited my passion for ethical leadership and community service,” said one participant. “I leave here today inspired and ready to make a difference.”

Sandra Ani, the convener, in her address expressed gratitude to all participants, speakers, and sponsors for their contributions to the success of the conference. “Together, we have taken a significant step towards building a more compassionate and ethical society. I am confident that the conversations and connections made here will continue to inspire positive change in our communities.”

The event served as a platform for open dialogue and interactive learning, fostering a sense of shared responsibility in nurturing moral values within the community.

Other notable speakers included Hon. Chibueze Ofobuike, the chairman of Aguata Local Government Area of Anambra State; Barr. Doris Chinedu-Okoro, CEO of Evergreen Group; and Mr. David Folaranmi, an advocate of drug abuse and addiction recovery.

Essay Competition

Highpoint of the conference includes an essay contest which focused on senior secondary school students from both government and private schools on the topic: “What are the common reasons why teenagers might be tempted to experiment with drugs, and what strategies can they employ to resist peer pressure and make healthy choices regarding substance use?”

The contest attracted over 500 entries, which were narrowed down to 100 students for the second stage, and finally, 20 students made it to the finals.

During the conference, the top 20 essay writers were invited to receive an award of excellence. The top three essay winners were each given an award plaque, a gold medal, a certificate of excellence, and a cheque of 200,000 NGN for the second runner-up, 300,000 NGN for the first runner-up, and 500,000 NGN for the overall winner.

These students came from Anambra State, Osun State, and FCT Abuja, respectively. The remaining 17 students, representing Benue State, Kwara State, Ireland, Ebonyi State, and Enugu State, were awarded a gold medal and a certificate of excellence each.

Brand Ambassadors

All top 20 essay contest finalists were appointed as brand ambassadors of VDLI. Their faces will appear on billboards in five states of the country. As ambassadors, they are expected to uphold and promote the moral values advocated by VDLI in their various environments.

Awards and Recognitions

All speakers were presented with recognition awards from the organization. The Hon. Commissioner of Education received an award for his profound impact on enhancing education; Hon. Chibueze Ofobuike was recognized for empowering youths and transforming communities; Barr. Doris Chinedu-Okoro received an award for her outstanding contribution towards advancing education; and Mr. David Folaranmi was acknowledged for his efforts in creating awareness on drug abuse and helping people overcome addiction.

Special Presentations

A notable presentation on the role of the girl child in upholding Nigeria’s values and ethics was made by Akpem Comfort Msuurshima from Jewel Model Schools, Makurdi, Benue State.

Additionally, a cultural display by students of Seat of Wisdom Secondary School, Enugu, showcased the rich cultural heritage of Nigeria.

About Values for Daily Living International Conference:

Values for Daily Living International (VDLI) is an organization dedicated to the global promotion of ethical values and moral principles. Founded in 2019, VDLI has been at the forefront of inspiring positive change in individuals of all ages. Through innovative programs, impactful initiatives, and engaging resources, VDLI strives to encourage individuals to lead more fulfilling lives, guided by morals such as honesty, integrity, and respect.

The mission is to use the teaching of values to change minds, thereby transforming lives.

VDLI’s vision is to cultivate a society deeply rooted in strong moral values, ensuring individuals contribute meaningfully to society.

The Organization emphasizes values such as Integrity, Leadership, Compassion, and Respect guide all aspects of VDLI’s work, from program development to community engagement.


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Netflix Hikes Subscription Fee by 40 Percent, Nigerians now to Pay N7,000 Per Month

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Nigerians will now be paying N7,000 per month, as video streaming platform, Netflix, has once again increased its subscription prices with its Premium Plan going up by 40 per cent to N7,000 from N5,000 per month.

Netflix Hikes Subscription Fee by 40 Percent, Nigerians now to Pay N7,000 Per Month

Recall that Netflix has been raising the rates of its Basic and Premium plans starting in October 2023 in several major areas across the world, such as the United States, the United Kingdom, and France.

The streaming platform stated earlier in April that the price of its Premium Plan in Nigeria would increase to N5,000 from N4,400.

Simultaneously, the Basic Plan stayed at N2,900, and the Standard Plan was raised from N3,600 to N4,000.

At the time, Netflix said the price adjustment was part of a broader strategy to revise its subscription fees across various regions.

The changes, according to the company, were aimed at accelerating its revenue and earnings growth, following a pattern of periodic price hikes to support the expansion of content offerings.

The latest price increment makes it the second price adjustment by the platform within the space of three months in Nigeria, having implemented a price increment earlier in April this year.

According to the price update on the company’s website, the Standard plan subscription, which is popular among Nigerian subscribers for its HD quality and multi-screen viewing options, has been increased from N4,000 to N5,500. This represents a 37.5 per cent increment.

 

 

 

 

 

 

 

 


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NCC Promotes Copyright Awareness among Printers, Creatives

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The Management of the University Bookshop Nigeria Limited (UBN Ltd) has been cautioned to desist from the sales of pirated works following the continuous display of pirated books for commercial purposes on the shelves of the bookshop as observed during routine operations by the Commission’s operatives.

The advice was given during a meeting of the NCC Ibadan Office with the Managing Director, UBN Ltd, Mr. Agbola Olatunji Israel and his team at the University of Ibadan.

State Coordinator, Ibadan Office, Mrs. Oluropo Oke, while displaying evidence of the bookshop’s involvement in selling pirated books, explained to the team that pirated works had been removed from the University’s Bookshop shelves on three different occasions. She used the opportunity to sensitise the management of UBN Ltd on what constitutes Copyright offences from section (44) of the Copyright Act.

The Ibadan Office, Chief Copyright Officer, Legal, Mrs. Adeola Apara, stated that the University Bookshop must desist from selling pirated books and patronise genuine publishers, authors, accredited book vendors and agents rather than buying from pirates adding that ignorance is not an excuse before the law.

Responding, the MD UBN, appreciated the Commission for the meeting and promised to put an end to the illicit act while admitting that the books showed to him were seized from the University bookshop.

He however, requested the Ibadan Office to organise a seminar for the management team of the University Bookshop to learn the features that differentiate original works from pirated ones.

The NCC and the MD, UBN agreed that a Memorandum of Understanding (MOU) will be signed in due course to ensure the purchase of books from legitimate sources.

In another development, NCC Ibadan Office on Wednesday, 5th June 2024, organised a Seminar for the Association of Professional Printers of Nigeria, (ASPPON), Ibadan District, with the topic: Applicability of the Copyright Act in the Printing Industry. The seminar was aimed at sensitising and guiding printers on the relevance of the Copyright Act to the printing industry.

Chief Copyright Officer, Legal, NCC Ibadan Office, Mrs. Adeola Apara, while sensitising the printers, explained some sections of the new Copyright Act : Section 36 – Copyright Infringement, 38 – Order for inspection and seizure, 40 – Forfeiture of infringing copies, 44 – Criminal liability, 48 – Duty to keep record and 86 – Duties of Copyright Officers.

She stressed on the importance of keeping proper records of all their work,s showing all the columns as indicated in section 48 of the Copyright Act.

The Printers were advised to do their businesses within the ambit of the law and warned that offenders will be arrested and dealt with according to the law.

Responding to questions about what should be done if their works are pirated, the State Coordinator, explained that the best approach is to report such offence to the office of the Nigerian Copyright Commission. She encouraged authors to register their works on the Commission’s e-registration platform in order to have their records in the Commission’s data bank.

Mr. Kayode Famurewa, the Chairman, ASPPON, appreciated the Commission for the seminar and having their interest at heart and assured that members will abide by the tenets of the law in the day to day running of their businesses.

A new “Job Register Book” with extract of section 48 of the Copyright Act stated on the 1st page was introduced by the chairman, ASPPON, to members in order to guide them on how to work in line with the Copyright laws.

 


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