Connect with us

Telecom

MTN Executives to Resign as Telco Battles FG Fines

Published

on

Kindly share this post

There are strong indications that some executives of MTN Group will exit the telecom firm in the next few months as the company battles to resolve its issues with the Nigerian government over the reparation and payment of tax claims worth $10.1 billion.

 

Bloomberg said quoted people familiar with the matter as saying Mr Herman Singh, chief innovation officer of MTN, is expected to resign to establish his own tech venture.

 

If this eventually happens, the exit of Mr Singh will come as Babak Fouladi, chief technology officer prepares to join Dutch telecommunications firm, KPN NV, in a similar role next week.

 

MTN confirmed Fouladi’s departure, which was announced by Rotterdam-based KPN earlier this month. Singh declined to comment.

 

The executives are leaving after a three-year period of considerable turmoil at MTN. A shock $5.2 billion fine in Nigeria in 2015 embroiled MTN in 10 months of negotiations and prompted a management overhaul. Then earlier this year, authorities in the West African nation announced another round of multi-billion-dollar demands.

 

The stock has halved over the period, valuing the carrier at 169 billion rand ($12.2 billion). That’s even as demand for data services in Africa booms and MTN expands in fast-growing services such as mobile money. The company agreed to a partnership with Orange SA last week to ease payments across the continent.

 

The shares declined a further 2 percent on Tuesday to 88 rand as of 1.13 p.m. in Johannesburg, the steepest fall in a week.

 

Rob Shuter, MTN chief executive officer was hired from Vodafone Group Plc two years ago in the wake of the first Nigeria penalty, which was eventually settled for about $1 billion.

 

Fouladi was lured from the same company later that year. Singh, formerly with MTN’s crosstown rival Vodacom Group Ltd., was appointed in 2015.

 

Stephen Van Coller, another high-ranking executive, left MTN at the end of August to take the helm of technology firm EOH Holdings Ltd. Originally hired as head of mergers and acquisitions, the former investment banker was moved to run digital services before quitting less than two years into his tenure.

 

MTN’s latest dispute with Nigerian authorities is over an allegation the company illegally transferred $8.1 billion out of the country and owes $2 billion in back taxes. While the transaction matter looks close to being wrapped up, with Central Bank Governor Godwin Emefiele saying he’s on “the verge” of announcing an amicable resolution, the taxation claim is still outstanding.

 

Other headaches for MTN include problems extracting cash from Iran, its third-biggest market, after U.S. President Donald Trump reinstated sanctions against the country. The carrier has also come under pressure to list country units on local stock exchanges, with Uganda the latest to link a share sale to license renewals.


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Telecom

Tariff Adjustment Attracts Over $1 billion Investment in Telecom infrastructure

Published

on

Kindly share this post

Dr. Aminu Maida, Executive Vice Chairman, the Nigerian Communications Commission (NCC) has said that the new pricing regime in the sector has already attracted over $1 billion in fresh infrastructure investments this year, few months after it took effect.

He stated this yesterday during an interactive session with journalists in Lagos. According to him, the policy introduced in February gave mobile network operators (MNOs) the green light to adjust tariffs by up to 50% after nearly a decade of stagnant pricing.

“This act alone, has allowed investments to flow in. We will be revealing more specific figures in the coming weeks after verification, but we are talking about over a billion dollars’ worth of investment in 2025 alone,” he said.

Maida explained that the new pricing regime has reversed years of under-investment that slowed network expansion and weakened service quality. He pointed out that before now, the value chain was lopsided—tower companies could adjust prices annually for inflation and FX rates, but MNOs were stuck with fixed tariffs.

“This is an industry that requires continuous investment. The world is moving ahead, and if we do not create the right conditions, we will be left behind,” he warned.

The decision, he added, aligns with the guiding principles of the 2000 Telecom Policy and the 2003 Communications Act, which favour market-driven pricing while ensuring healthy competition and consumer protection.

According to Maida, the benefits of the policy are already visible. Equipment ordered by operators has been arriving since June, with network expansion and upgrade works in progress nationwide.

“We are closely tracking the rollout. We hold weekly calls with operators to monitor site builds, upgrades, and to step in when they face challenges with authorities,” he said.

The EVC of NCC believes these investments will help boost capacity, improve service quality, and keep Nigeria competitive in the global telecom arena.

While the investment news is positive, Maida didn’t shy away from highlighting the operational cost pressures confronting operators.

He said the sector burns through over 40 million litres of diesel monthly, most of it imported, to power base stations.

On top of that, the industry is heavily dependent on FX for all network hardware and software imports, as there’s no local manufacturing of major telecom equipment.

“There is nothing you need to build or upgrade a network today in Nigeria that you can buy locally,” Maida stated.


Kindly share this post
Continue Reading

Telecom

ATU, AFRINIC Urge Governments, Regulators to Develop Internet Resilience Framework

Published

on

Kindly share this post

As Africa continues to face internet disruptions, telecom leaders have urged governments and regulators to embrace and implement a Model Framework for Building Regional Internet Resilience.

The African Telecommunications Union (ATU), Internet Society, and African Network Information Centre (AFRINIC) have all endorsed the framework.

The framework organises Africa’s internet resilience challenge around three interdependent focus areas: networks and internet service providers (ISPs), critical infrastructure such as power grids and cables, and market conditions that influence affordability and demand, according to the organisations in a joint statement.

Once implemented, entities or operators responsible for an important part of a country’s internet ecosystem, such as electricity utilities, mobile network operators, ISPs, internet exchange points, or a country-code top-level domain registry, must develop a resilience plan within one year of the framework’s official adoption.

The statement also mentions several past disruptions that hampered communication, such as the West Africa Cable System failure in March 2024, which cut off 13 countries for days.

They went on to explain that the plan must be evaluated and updated on an annual basis and be compatible with the entity or operator’s continuity and reconstitution plans.

It (framework) should also specify how the organisation intends to incorporate the resilience features of redundancy, resourcefulness, rapid recovery—all of which are critical components of achieving overall robustness—into its operations.

ATU has warned that every blackout is a flashing red warning, and that the framework would act as an insurance policy against outages.

“Connectivity remains Africa’s nervous system and when it stutters, schools, hospitals and markets stutter too. This framework is our insurance policy against digital darkness”, said John Omo, secretary general of ATU.

Arthur Carindal, AFRINIC’s head of stakeholder engagement, commended the institutions for their coordinated efforts.

He said: “It is a great honour for AFRINIC to collaborate with ATU and ISOC in transformative initiative enabling all stakeholders to participate in developing Africa’s internet resilience model framework, which highlights key policy recommendations and best practices for strengthening internet infrastructure in Africa.”

 


Kindly share this post
Continue Reading

Telecom

NCC Rallies Stakeholder Support to Protect Telecom Infrastructure

Published

on

Kindly share this post

Nigerian Communications Commission (NCC) has reiterated its commitment to the full operationalisation of President Bola Ahmed Tinubu’s Executive Order on Critical National Information Infrastructure (CNII), which designates telecommunications facilities as critical national assets deserving optimal protection.

This comes on the heels of a successful mediation led by the Office of the National Security Adviser (ONSA), in collaboration with the Commission, which resulted in the suspension of a planned strike by the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA).

The strike, if carried out, would have disrupted the supply of diesel to telecommunications sites nationwide, severely affecting network operators’ ability to power their diesel-driven generators and maintain uninterrupted connectivity.

In the days leading up to the resolution, the ONSA, under the leadership of the National Security Adviser (NSA), Mallam Nuhu Ribadu, held strategic engagements with NOGASA’s leadership, with the Commission providing technical and regulatory guidance to highlight the potential implications of service disruptions on national security, the economy, and everyday life.

The discussions culminated in an agreement to call off the industrial action, averting what could have been a nationwide disruption of telecom services.

“Telecommunications infrastructure is the backbone of our connectivity and digital economy. Any disruption, whether through vandalism, accidental damage during construction work, theft of equipment, denial of access to maintenance teams, or interruptions in the supply of essential operational materials, has far-reaching implications for service delivery, economic stability, and national security,” the NSA said.

The Commission expressed appreciation to the ONSA for its leadership and dedication to protecting national assets and commended the maturity and understanding demonstrated by relevant stakeholders in recognising the national importance of telecommunications services.

Commenting on the development, the Executive Vice Chairman/Chief Executive Officer of the Commission, Dr. Aminu Maida, stated: “We will continue to enforce strict compliance by our licensees with technical standards for the deployment and maintenance of telecommunications infrastructure, while working closely with relevant stakeholders to strengthen awareness and cooperation on their protection.

“We also recognise mediation as an effective tool for building consensus among stakeholders. This resolution underscores the importance of dialogue in preventing avoidable service disruptions. Ultimately, we call on all Nigerians to regard telecom infrastructure as a shared national asset, one that underpins our ability to connect with loved ones, transact businesses, access healthcare, pursue education, and participate in the global digital economy.”

The Commission reaffirmed that it would continue to coordinate with security agencies, industry stakeholders, and the public to ensure that Nigeria’s telecommunications infrastructure remains protected, resilient, and reliable for all.


Kindly share this post
Continue Reading

Trending