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Nigeria Becomes Cash Cow for MTN Group

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Sifiso Dabengwa, Group President/Chief Executive Officer of MTN Group
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MTN Group, Africa’s largest telecoms provider, reported a 27 percent rise in full-year earnings on Wednesday, but also revealed a dip in revenues in its home market South Africa due partly to fierce competition.

The revenue drop meant Nigeria overtook South Africa to become the group’s biggest revenue earner.

Reuters reported that South African revenue shrank by 6.1 percent to 39.7 billion rand ($3.7 billion) while in Nigeria, Africa’s most populous country, it rose nearly 6 percent to 48.2 billion rand.

MTN, which has operations in nearly two dozen countries across Africa and the Middle East, added 279,000 users in South Africa in 2013, compared with 9.3 million new Nigerian customers.

In South Africa, price competition between MTN and its rivals, including Vodacom, Cell C and Telkom’s 8ta has squeezed MTN’s margins.

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“Our response to the competitive environment was probably not as effective but we are satisfied that the initiatives (around pricing) that were brought in during the second half have started showing some good results,” Sifiso Dabengwa, chief executive said.

The company is also challenging a South African regulatory decision to reduce the rates it charges competitors to carry calls on its network, arguing smaller operators stand to gain from the decision.

Johannesburg-based MTN said overall revenue rose 12 percent in 2013, underpinned by data revenue, which climbed more than 40 percent to 20.7 billion rand.

Mobile phone operators are reinventing themselves to rely less on telephone calls and pushing customers to use more data, which is seen as having growth potential on a continent where most people lack traditional internet access.

MTN said it was diversifying into e-commerce by forming a partnership with Germany’s Rocket Internet to launch services in Africa and the Middle East.

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Dabengwa said e-commerce penetration was still below 1 percent in Africa.

MTN’s diluted headline earnings rose to 1,378 cents per share in the year to end-December, from 1,082 cents a year earlier. Headline EPS, the main profit measure in South Africa, excludes certain one-time items.

MTN had already flagged that earnings would be higher following foreign exchange gains of 1.1 billion rand ($101.96 million). The rand currency lost around 20 percent last year, hit by a sell-off in emerging market assets, and lifting overseas earnings for exporters and internationally focused companies such as MTN.

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Telcos Seek Clear Regulatory Framework on Airtime Credit Services

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Telecommunications operators have called on the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Communications Commission (NCC) to establish a clear regulatory framework for airtime and data credit services, warning that millions of Nigerians could face fresh disruptions if the agencies fail to coordinate their responsibilities.

Telcos Seek Clear Regulatory Framework on Airtime Credit Services

Gbenga Adebayo, chairman, ALTON

This is coming on the heels of the Federal High Court judgment affirming the FCCPC’s authority to regulate consumer protection in the airtime and data credit market while preserving the NCC’s exclusive mandate over telecommunications licensing and technical regulation.

The ruling effectively clarified that both regulators have complementary roles rather than overlapping powers.

Association of Licensed Telecommunications Operators of Nigeria (ALTON), said the judgment should serve as the basis for stronger collaboration between the two regulators to avoid the regulatory uncertainty that earlier forced operators to suspend airtime and data credit services.

Gbenga Adebayo, chairman, ALTON, said the industry was not disputing the authority of either regulator but was seeking a clearly defined operational framework before any further regulatory actions are taken.

“The court has done something important. It has confirmed the FCCPC’s authority and, in the same breath, affirmed that the NCC’s role is preserved. Concurrency means coexistence. The industry now expects both regulators to establish the coordination framework that the court’s reasoning requires,” Adebayo said.

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He stressed that regulatory certainty had become critical because millions of Nigerians depend on airtime and data credit services for daily communication.

“Forty million Nigerians depend on these services. The court has made clear that both regulators have a role. The industry is asking them to define how that works before any action that could disrupt access again,” he stated.

Adebayo also urged both agencies to engage industry stakeholders before introducing measures capable of affecting consumer access to the services.

According to him, the Presidential Enabling Business Environment Council (PEBEC) directive requiring Regulatory Impact Assessments before major policy changes should be observed to minimise unintended consequences on businesses and consumers.

The renewed call comes months after major mobile network operators temporarily suspended airtime and data borrowing services following the implementation of the FCCPC’s Digital, Electronic, Online and Non-Traditional Consumer Lending (DEON) Regulations, a development that affected millions of subscribers nationwide.

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In its judgment, the Federal High Court held that while the FCCPC has powers over competition and consumer protection issues in the digital lending ecosystem, it cannot assume the NCC’s statutory responsibility for licensing telecommunications operators.

Justice Ambrose Lewis-Allagoa ruled that the two agencies must operate within their respective mandates, describing their relationship as one of “coexistence, not displacement.”

 

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MTN Warns Customers against Fake Promo

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MTN Nigeria has warned customers to disregard fraudulent online posts claiming the telecom operator is offering “1 Month Free Data for Old Subscribers,” describing the promotion as fake and unauthorised.

MTN Warns Customers against Fake Promo

In a statement shared on its X handle, the telco said the circulating promotion is not from MTN and is not affiliated with the company.

MTN urged customers not to click on the accompanying link in the online post or provide their phone numbers or personal information on any third-party website.

Customers are advised not to click on the link or provide their phone numbers or personal information on any third-party website.

“We will never require customers to submit their details on external platforms to claim data or any other reward,” MTN said.

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The company  added that all genuine promotions, products and services are announced only through its official communication channels.

“All authentic MTN promotions, products and services are communicated exclusively through our official channels, including www.mtn.ng, our verified social media pages and *180#,” the company said.

MTN also urged customers to remain vigilant against online scams designed to steal personal information, warning that fraudulent offers often impersonate trusted brands to deceive unsuspecting users.

“Don’t be the next victim!” the company said, reiterating that the purported “1 Month Free Data for Old Subscribers” offer is fake and not associated with MTN Nigeria.

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Court Dismisses Pan African Towers’ Bid to Halt Ex-CEO’s Suit, Awards ₦500,000 Costs

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National Industrial Court of Nigeria (NICN), sitting in Ikoyi, Lagos, has dismissed a Notice of Preliminary Objection filed by Pan African Towers Ltd. (PAT) in an employment dispute instituted by its former Managing Director and Chief Executive Officer, Mr. Azeez Amida.

Court Dismisses Pan African Towers' Bid to Halt Ex-CEO's Suit, Awards ₦500,000 Costs

The court also awarded ₦500,000 in costs against the company after holding that the application lacked merit.

Justice Essien, who delivered the ruling on July 21 in Suit No. NICN/LA/143/2025: Mr. Azeez Amida v. Pan African Towers Limited, held that the substantive case concerning Amida’s alleged outstanding contractual entitlements under a Mutual Separation Agreement should proceed to hearing.

The ruling effectively rejected the company’s attempt to terminate the proceedings on jurisdictional grounds.

Jurisdictional Challenge Rejected

Pan African Towers had argued that the National Industrial Court lacked jurisdiction to entertain the matter because the Mutual Separation Agreement executed between the parties required disputes to first pass through negotiation, mediation and arbitration before litigation could be initiated.

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The company maintained that Mr. Amida failed to exhaust those contractual dispute resolution mechanisms before approaching the court.

However, Justice Essien rejected the argument after examining evidence presented by the claimant showing that several attempts had been made to activate the agreed dispute resolution process before legal proceedings commenced.

According to the court, documentary evidence showed that Mr. Amida, through his solicitors, issued correspondence and formal demand letters aimed at resolving the dispute amicably in line with the terms of the agreement.

The court found that rather than engaging with those efforts, Pan African Towers failed to meaningfully participate in the process and later sought to rely on the same contractual provisions to challenge the court’s jurisdiction.

Evidence Considered by the Court

According to evidence presented by Mr. Amida’s legal team, the court considered correspondence involving senior officials of Pan African Towers and its investors.

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Among the documents relied upon was a letter allegedly written by the Chairman of the Board of Pan African Towers and Partner at Development Partners International (DPI), Mr. Adefolarin Ogunsanya, rejecting the demand made by Mr. Amida’s legal representatives for an amicable resolution before litigation.

The claimant’s legal team also tendered multiple email communications allegedly sent from January 2025 to Verod Capital Management’s in-house legal counsel, Mr. Dipo Okuribido.

According to the claimant, those emails did not receive any response before the commencement of the suit.

Based on the evidence before it, the court held that the conduct of Pan African Towers was inconsistent with reliance on the contractual dispute resolution provisions.

Justice Essien ruled that the company had effectively waived its right to insist on arbitration after frustrating the preliminary dispute resolution process contemplated by the parties’ agreement.

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The court consequently held that Pan African Towers could not rely on the arbitration clause to prevent the court from hearing the substantive claims.

Court Awards Costs

Having dismissed the Preliminary Objection, the National Industrial Court awarded costs of ₦500,000 against Pan African Towers.

The court described the objection as lacking merit.

Substantive Defence Yet to Be Filed

The ruling represents the first judicial determination in the employment dispute.

The claimant’s legal team noted that since the suit commenced, the principal response filed by Pan African Towers had been the Preliminary Objection challenging the jurisdiction of the National Industrial Court.

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According to the claimant, the company has yet to file a substantive defence addressing the merits of the claims relating to the alleged outstanding contractual entitlements.

With the dismissal of the jurisdictional challenge, the matter will now proceed to hearing on its merits.

The court adjourned the substantive suit until Jan. 12, 2027.

Background to the Dispute

The dispute arose following Mr. Amida’s departure from Pan African Towers after both parties executed a Mutual Separation Agreement.

According to the claimant, while the agreement governed the terms of his exit from the company, certain contractual entitlements remained unpaid.

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His legal representatives said they initially sought to resolve the dispute through the mechanisms provided under the agreement by engaging the company through correspondence and formal demand letters.

When those efforts failed to produce a resolution, they commenced proceedings before the National Industrial Court seeking payment of the outstanding contractual entitlements.

Rather than filing a substantive defence to the claims, Pan African Towers challenged the jurisdiction of the court, arguing that arbitration and other dispute resolution mechanisms had not been exhausted.

The National Industrial Court has now rejected that position.

Related Commercial Litigation

The employment proceedings are separate from ongoing commercial cases before the Federal High Court involving Mr. Amida, Development Partners International (DPI), Verod Capital Management and other parties.

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Those proceedings relate to issues concerning the ownership of Pan African Towers and remain pending before the courts.

The National Industrial Court noted that those matters would be determined independently based on their respective facts, evidence and applicable legal principles.

Legal Team Reacts

Reacting to the ruling, representatives of Mr. Amida’s legal team welcomed the decision.

“The Court has affirmed an important principle of contractual dispute resolution.

“A party cannot frustrate the agreed process and later seek to rely on that same process to prevent a claim from being heard.

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“We now look forward to presenting the substantive case before the Court,” the legal team said.

The lawyers acknowledged that Pan African Towers retained the right under Nigerian law to pursue any available appellate remedies but stated that they were fully prepared for the substantive hearing scheduled for January 2027.

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