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MTN Loses $4.7Bn in Value after NCC’s Fine

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Analysts are of the view that investor perceptions of Nigeria strained over MTN’s $5.2 Billion Penalty‎ as the phone company has lost $4.7 billion in value since news broke on Monday following $1billion mega sanctions slammed on the Company.

The analysts are at lost on the decision by Nigerian authorities to impose a fine on MTN Group Ltd. of more than 20 percent of its market value which implies risks of losing foreign investment in an economy struggling to cope with sliding oil prices, currency restrictions and no finance minister.

“The brazenness of Nigerian authorities to levy such a penalty is attracting attention,” Gareth Brickman, an Africa analyst at ETM Analytics NA LLC in Stamford, Connecticut, said in an e-mailed note to clients on Wednesday. “Investor perceptions of Nigeria have been strained to say the least by policymakers’ management of the naira and the new administrations lack of progress on economic reform.”

NCC, the Nigeria’s telecommunications regulator on Monday fined MTN Nigeria a total of $5.2 billion for failing to disconnect over 5million customers with unregistered SIM cards and incomplete data, causing the shares to post their biggest three-day plunge in Johannesburg since 2008.

Over time, Nigeria remains MTN’s biggest market, where it had 62 million customers by September.

Investors are losing faith in President Muhammadu Buhari, who is yet to name his cabinet five months after taking office.

He has backed foreign-currency controls imposed by the central bank that’s led to an overvalued naira, restricted imports and curbed economic growth in Africa’s biggest oil producer.

The economy grew at its slowest pace this decade at 2.4 percent in the second quarter from a year ago.

Security Concerns
“These kinds of incidents will only add to the checklist of reasons for investors to stay away for the foreseeable future,” said Brickman.

MTN said on Oct. 26 that the penalty relates to the timing of the disconnection of 5.1 million MTN Nigeria subscribers in August and September and is based on a fine of 200,000 naira ($1,005) for each unregistered subscriber.

Yinka David-West, a senior fellow in Information Systems at Lagos Business School, said the stricter rules on registration were aimed at improving security in a country where kidnapping for ransom is rife and the government is struggling to end an insurgency by Boko Haram militants in the northeast.

“This registration exercise started because of a security issue,” she said by phone on Wednesday. “It’s not just about having a database of names and numbers. It’s a tool that is supposed to help fight terrorism, kidnapping, money laundering and all sorts of issues.”

Consequences
Meanwhile, MTN Group Ltd shares fell for a third day in Johannesburg to a three-year low after the company announced that it faces a $5.2 billion fine from the Nigerian telecommunications regulator.

The stock declined 2.6 percent to 155.85 rand by the close in Johannesburg, the lowest since October 2012.

That values the company at 288 billion rand ($21 billion), about 63 billion rand less than the start of the week. Almost 17 million shares were traded on Wednesday, or more than twice the three-month daily average.

“The problem is it’s an open-ended risk,” Grant Cullens, chief executive officer of African Alliance Asset Management Ltd., which manages $1.2 billion in assets, said by phone from Johannesburg. The fine “could end up being a huge number and while it may seem out of proportion to the share price, it’s that overhang risk that will be dominating sentiment.”


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NCC Temporarily Suspends Issuance of New Licenses

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Nigerian Communications Commission (NCC) says it has temporarily suspended the issuance of new licenses in some categories.

NCC Temporarily Suspends Issuance of New Licenses

The commission said the categories included interconnect exchange license, mobile virtual network operator license and value added service aggregator license.

Reuben Mouka, director of Public Affairs, NCC,  in a statement in Abuja on Friday, said the commission acted in line with its powers under the Nigerian Communications Act (NCA) 2003.

“This temporary suspension is necessary to enable the commission to conduct a thorough review of several key areas within these categories, including the current level of competition, market saturation and current market dynamics.

“The public is invited to note that during the suspension period commencing on May 17, new application for the aforementioned licenses will not be accepted.

“This is without prejudice to pending applications before the commission will be considered on their merits.

“Any enquiry or clarification in respect of this suspension notice should be forwarded to: [email protected],” NCC said.

 

 

 

 


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Cable Cuts Expose Vulnerabilities in Africa’s Internet Infrastructure

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The vulnerability of East Africa’s countries was starkly revealed once again in the aftermath of the damage inflicted upon an undersea cable, leading to widespread internet outages across the region.

Cable Cuts Expose Vulnerabilities in Africa's Internet Infrastructure

According to Business Day Africa, this incident marks the third cable cut this year, plunging millions of users in Kenya, Uganda, Tanzania, and Rwanda into a state of connectivity limbo.

The disruption caused by the severance of two vital submarine cables- the East Africa Submarine System (EASSy) and Seacom, resulted in significant delays in internet access, so much so that operations at the US embassy in Dar es Salaam had to be suspended.

EASSy spans a staggering 10,000 kilometres along the eastern coast of Africa, boasting nine landing stations strategically positioned in Sudan, Djibouti, Somalia, Kenya, Tanzania, Comoros, Madagascar, Mozambique, and South Africa.

Tanzania bore the brunt of the outage, experiencing the most severe disruptions, as evidenced by data from the Internet Outage Tracker, compelling the embassy to halt its services for a period of two days.

This latest incident follows a series of challenges earlier this year when connectivity in East Africa was hampered by damage sustained by three submarine cables traversing the Red Sea.

Internet users in East Africa have been grappling with intermittent connections since Sunday, May 12, 2024.

The International Cable Protection Committee attributes the damage to a probable encounter with the anchor of a cargo ship, allegedly targeted by the Yemen-based Houthi rebel group.

However, repair efforts have been impeded by ongoing tensions surrounding access rights to the affected waters.

Commenting on the situation, Bright Simons, research lead at the IMANI Center for Policy and Education in Ghana, lamented the lack of a comprehensive regional framework for telecom emergencies in East Africa, according to SemaFor news.

He noted that despite the region’s advanced regional integration initiatives, similar to those seen in the Southern African Customs Union and Francophone units, the absence of such mechanisms has left operators scrambling to establish ad hoc cross-border arrangements.


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Nigeria’s Omoniyi Ibietan, elected Secretary-General of APRA

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Omoniyi Ibietan, Head Media Relations at the Nigerian Communications Commission, fellow of the Nigerian Institute of Public Relations (NIPR) and African Public Relations Association (APRA), has just been elected the Secretary-General of APRA at the ongoing 35th Annual Conference and Annual General Meeting taking place in Abidjan, Côte d’Ivoire.

Ibietan has promised to work with other members of the Executive Council to continue the trajectory of reforms in APRA, expand the democratic space by encouraging greater participation of national public relations institutions on the Continent and work more closely with the African Union Commission and Council of Ministers to put public relations at the heart of policy, programmes, and project implementation. Ibietan was elected into a three-man Executive Council. The other two members are Arik Karani (Kenya), President, and Dr. Michele Mekeme (Cameroon), Vice President.

OMONIYI P. IBIETAN is a journalist, writer, and author. As Head of Media Relations Management at the Nigerian Communications Commission (NCC), where he oversees aspects of the public communication strategy of the national regulatory authority for telecommunication in Nigeria. Earlier in Nigeria’s Fourth Republic, he was Special Media Advisor to the Federal Minister of Information and Communication.

He has over 20 years of experience in media and communication scholarship and practice, spanning journalism, academia, policy discourse, communication strategy, regulation, and stakeholder relations.

He earned BA and MA in Communication Arts and Communication & Language Arts from the Universities of Uyo and Ibadan in Nigeria, respectively, graduating atop his classes. Earlier, he obtained a diploma in journalism with distinction from the Moscow-Based International Institute of Journalism.

He holds a Ph.D. in Communication from the North-West University in South Africa, with specialisation in political communication. He is a IP3 certified regulation specialist and holds a mini MBA in telecommunications from NEOTELIS in Paris.

He is also a member of the African Council for Communication Education (ACCE), an Associate Registered Practitioner of Advertising (arpa) and member of the International Institute of Communications (IIC), the world’s only policy debating platform for the converged communications industry.

As a scholar, he focuses on patterns of political communication through new media; media and culture studies; and theoretical & normative foundations of communication in relation to democracy and freedom. He is on the faculty of the Nigerian campus of Italy-based Rome Business School (RBS), where he teaches doctoral students PR & Advertising and Media Management & Communication Strategy. He also facilitates learning to students in the Master of Corporate Communication programme at RBS.

His first book, SOCIAL MEDIA, SOCIAL DEMOGRAPHY, AND VOTING BEHAVIOUR IN NIGERIA, was published by Premium Times Books in Washington in May 2023.

He has travelled extensively in Africa, North America, Europe, and Asia.

He is married, has children, plays tennis and scrabble, loves reading and writing, and loves meeting people, especially people from other cultures.

At the ongoing conference, Ibietan presented the first paper at the commencement of business sessions. The title of his paper is DIGITAL INCLUSION AS ARBITER OF ACCESSIBLE PUBLIC RELATIONS: A CASE OF NIGERIAN COMMUNICATIONS COMMISSION.

Using Castells’ Theory of the Network Society and the Knowledge Gap Theory and based on the actions of the Nigerian government through the activities of the Nigerian Communications Commission (NCC), Ibietan advanced a thesis that digital inclusion is the arbiter of digital public relations.

Through implementation of laws, policies, guidelines, developmental regulation, collaborative partnerships, social investments, operational efficiency and ancillary actions that are consequential and quantifiable, and using copious pictorial evidence, Omoniyi discoursed a perspective that NCC’s digital inclusion programmes, projects and activities are foundational to digital economy because investment in and coordination of expansion of digital infrastructure, demonstrating their affordances and enhancing people’s access to such resources, constitute the building blocks and raison d’être of digital economy and inherently digital public relations.

APRA, the successor to the Federation of African Public Relations Association (FAPRA), instituted in Nairobi in 1975, exists to foster unity of Africans and their global allies through interactions and exchange of meaning. Pivoted on standardisation of public relations practice and scholarship on the Continent to enhance its relevance to the African reality, APRA member states and individuals meet annually at a location in any of its regional centres (East, North, South, West, Central, Indian Ocean Islands, and Francophone) to have a conversation with a thematic focus on any of its key intervention areas (Health & Education, Economic Integration, Good Governance, Tourusm & Leisure, and Infrastructure Development). This year’s theme is ‘ONE AFRICA, ONE VOICE: BRIDGING AFRICA’S COMMUNICATION DIVIDE’.

APRA Côte d’Ivoire 2024 is endorsed by the Government of Côte d’Ivoire, the Holding Opinion & Public (THOP), and major global PR associations, namely the International Public Relations Association (IPRA), The International Communications

Consultancy Organisation (ICCO), the Global Alliance for Public Relations and Communication Management (GA), the African Union Commission (AUC), and PR national associations across the continent.

Additionally, the conference featured the eighth edition of the Innovation Summit (IN2SUMMIT) and includes the seventh edition of the SABRE Awards Africa, holding tonight.

The APRA secretariat is in Nigeria, and the body maintains an observer status with the African Union.


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