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  • ‘Compel MTN to deposit judgment debt, interest’

    ‘Compel MTN to deposit judgment debt, interest’

    Former expatriate staff of MTN Group, Paul Odunewu, has urged Court of Appeal, Lagos Division, to compel MTN to deposit with the court the judgment debt and accrued interest as ordered by National Industrial Court Nigeria (NICN), Akure Division.

     He filed a further-reply-affidavit and written address on December 28, in support of his application for the order.

     In a judgment delivered by Justice Oyejoju Oyewunmi on September 17, 2017, the court found that the termination of the former Operations manager on February 28, 2006, was wrongful and malicious.

     The court had ordered MTN to pay his entitlements, including share options, valued at $13,144,512.00.

    MTN had faulted the judgment of NICN and appealed on September 29, 2017, through external counsel, Prof. G. Elias & Co., vide a notice of appeal containing two grounds alleging the court breached its right to a fair hearing.

     It also filed a motion for stay of the judgment, but Odunewu’s counsel, Prof. A. B. Kasunmu’s Chambers, opposed the stay on grounds that the initiating notice of appeal was not competent.

     MTN Group, South Africa (MTNG); MTN Nigeria (MTNN) and MTN International, Mauritius (MTNI) are first, second, and third appellants, in the six-year appeal which had lasted over 10 years from Lagos State High Court to NICN before judgement in September 2017.

    In his application filed on January 8, 2020, with appeal CA/1346/2017, Odunewu asserted that the Notice of Appeal filed by MTN on September 29, 2017, is incompetent and does not raise any substantial or recondite issues of law.

     Odunewu said on December 24, 2018, MTN announced a payment of $52.6 million as a “notional reversal” of $1.0 billion private placement in 2008 based on a certificate that did not have final approval and resolved the $8.1 billion dividend repatriation issue with Central Bank of Nigeria (CBN).

    “A Nigeria Senate Committee had investigated MTN for capital flight and had reported that a capital inflow of $1.24 billion was injected for MTN operations in Nigeria for the period 2001 – 2016 whereas MTN Nigeria repatriated $13.92 billion from 2006 to 2016 in the guise of dividends/profit, repayment of loans and licenses/management fee. 

     “This meant that MTN, as of 2016, were repatriating US$11.00 for every US$1.00 that they injected into their business in Nigeria,” he stated.

     In a Reply-Affidavit dated February 4, 2022, one Temitayo Adeniyi, a lawyer at Prof A. B. Kasunmu’s Chambers, deposed that MTN “substituted payment of the fines and associated costs with huge debt and are, therefore, running their operations in Nigeria with riskier financial structure than 2014 (before the 2015 NCC fine).”

    “In the current Nigerian climate of stronger regulatory oversight, MTN Group redeemed its preference shares and thereby reduced their exposure in Nigeria but created significant financial and economic risk to boost shareholder returns with much higher leverage in 2019 than in 2018”. 

     Odunewu added: “MTN has not prosecuted this appeal expeditiously but instead they have been prevaricating to regularize the initiating Notice of Appeal dated 29th September 2017 thereby causing enormous delay to the determination of this Appeal.

     “The appellants have failed or are unable to take advantage of this honourable Court’s ruling on the 17th of October 2018, that the Motion for Stay of Execution shall abide the determination of the appeal, which is adjourned to 27th February 2019.”

     He further deposed: “The entire appeal is a masterful delay tactic, cleverly designed by the Appellants to deny the Respondent from enjoying the fruit of the Judgement.”

    But, in a Further-Counter-Affidavit by MTN dated 18th February 2022, one Athanasius Akor, a Lawyer at G. Elias & Co, deposed: “The fact that there is an appeal against the judgment and a pending application for stay of execution is an exercise of the constitutional rights of the appellants”.

     He deposed that MTN “is not dissipating and is not repatriating its assets out of Nigeria”; and that MTN “conducted an offer for sale of its share on the Nigerian Stock Exchange (NGX) which is a testament of its long term believe and its intention to remain as an active participant in the Nigerian economy.” 

     He further deposed that the 2015 fine has been fully paid since May 2019 and that MTN Nigeria has been making a profit and declaring dividends. Mr. Akor deposed that the share price of MTN Nigeria jumped to N199.8 per share on 17th February 2022.

     He further deposed that Odunewu based his analyses on the MTN Nigeria 2018 Audited Account and not the latest 2021 Audited Financial Statement in which MTN Nigeria declared a revenue of circa N1.7 Trillion and a profit of circa N286 billion.  

    He said: “The respondents have no financial issues that will prevent them from meeting their financial obligations or paying the judgment debt and accrued interest if the appeal is determined in favour of the Applicant and against the respondents”.

     In a Further-Reply-Affidavit sworn to on 28th December 2023, one Ejike Mitchel Maduagwu, a lawyer at Prof A. B. Kasunmu’s Chambers, deposed that MTN Nigeria “is still being investigated for other tax and revenue leakage matters.

     Odunewu insisted: “The appellants have repatriated out of Nigeria their huge profit and replaced it with huge debt.

    Read Also: BREAKING: NCC makes U-turn, stops disconnection of Glo customers by MTN

     “The huge revenue, profit, and share price in 2021, as reported in the 2021 Audited Account, are unreliable indicators to determine the Respondents’ ability or willingness to pay the judgement debt or withstand future shock to their business, be it regulatory, economic, or political.

     “MTN Nigeria reported in their 2021 Audited Account that the demand notice for N242 Billion and US$1.3 Billion alleged revenue indebtedness is still undergoing review and reconciliation with both the Federal Inland Revenue Service (FIRS) and Nigeria Customs Service (NCS).

     “House of Representatives’ (HOR) tax compliance check and alleged US$30 Billion revenue leakage against MTN Nigeria is still undergoing review.”

     Odunewu concluded that it is in the interest of justice to grant his application and “direct the respondents to deposit with this honourable court the judgement debt and interest accrued till a day of fund transfer; or in the alternative, we pray the Court to direct the Respondents to provide a Bank Guarantee to secure the judgment debt pending the determination of this appeal.”

     The trial Court had found that MTN Group is the parent company and the life wire of both MTNN and MTNI that controls them and thus integral part of both companies.

     It held that MTNN has no power of its own to act under its contractual agreement with Odunewu except as approved by its Parent Company, MTN Group.

     The trial Court had ordered that the judgment sums of $13.47 million, N2.54 million, and £10 thousand be paid by the second and third defendants (MTNN & MTNI), “except the issue of costs which is to be paid by all the defendants (MTN sic)”.

     The trial judge had ordered MTN to make the payments within 30 days, failing which the sums would appreciate at 21 per cent interest per annum.

  • We are not owing MTN interconnect charges – Globacom

    We are not owing MTN interconnect charges – Globacom

    Globacom Ltd, a Nigerian Telecommunications Company on Tuesday denied reports making the rounds that it was owing MTN interconnect charges.

    A reliable source in Globacom told the News Agency of Nigeria (NAN) in Lagos that the amount due for payment was N1.6 billion and it had been paid without controversy.

    NAN reports that a public pre-disconnection notice signed by the Nigerian Communication Commission’s (NCC) Director of Public Affairs, Reuben Muoka, had been posted on the commission’s Twitter page on Monday, Jan. 8.

    The notice stated that Glo failed to settle its outstanding debts despite repeated attempts at resolution.

    It stated that after reviewing the application and the circumstances relating to the indebtedness, Globacom lacked the significant or justifiable reasons for failing to pay the interconnect charges.

    Part of the public notice read: “All subscribers are requested to take notice that the commission has approved the partial disconnection of Globacom to MTN.

    “This is in accordance with Section 100 of the Nigerian Communications Act (2003) and paragraph nine of the Guidelines on Procedure for Granting Approval to Disconnect Telecommunications Operators (2012).

    “At the expiration of 10 days from Jan. 8, 2024, subscribers of Globacom will no longer be able to make calls to MTN but will be able to receive calls.

    Read Also: JUST IN: Glo users may be barred from calling MTN lines — NCC

    The Glo official said a proper cross checking of facts should have been done before concluding that the telco was owing MTN.

    “We are not owing MTN any interconnect charges,” the Glo official said.

    The official added that Glo was the first telecoms company that introduced the pay per second form of billing, thereby cutting the monopoly of the other foreign companies operating in Nigeria.

    According to the Glo official, the report against Nigeria’s fully indigenous telecommunications company that has redefined access to communications at all levels is false.

    NAN

  • JUST IN: Glo users may be barred from calling MTN lines — NCC

    JUST IN: Glo users may be barred from calling MTN lines — NCC

    Globacom customers may be unable to make calls to MTN lines soon, due to unpaid interconnect charges.

    This was revealed by the Nigerian Communications Commission on Monday, January 8, in a notice to the public signed by Reuben Muoka, the director of the department of public affairs.

    According to the statement, the commission gave its partial consent for Globacom to be cut off from MTN Nigeria Communications Plc.

    The notice partly reads: “Globacom was notified of the application made by MTN and was given the opportunity to comment and state its case.

    Read Also: MTN Foundation, MUSON hold concert for donors

    “The commission, having examined the application and circumstances surrounding the indebtedness, determined that Globacom does not have sufficient or justifiable reason for non-payment of the interconnect charges.”

    The NCC said that after ten days had passed from the date of this notice, “subscribers of Globacom will no longer be able to make calls to MTN but will be able to receive calls.”

    It added: “The partial disconnection, however, will allow in-bound calls to the Globacom network.”

    Details shortly…

  • Oloyede, ex-NAHCON chair, MTN chief, others for GMP convention

    Oloyede, ex-NAHCON chair, MTN chief, others for GMP convention

    • By Mariam Ololade

    The Registrar and Chief Executive of the Joint Admissions and Matriculation Board (JAMB) Prof. Ishaq Oloyede, Chief Financial Officer and Executive Director of MTN Nigeria Mr Modupe Kadri and former Chief Executive Officer of Nigeria Hajj Commission (NAHCON) Alhaji Zikrullah Kunle Hassan will tomorrow lead eminent personalities that would speak at the 10th edition of annual convention of the Guild of Muslim Professionals (GMP).

    Other guests expected at the event, according to a statement by Chairman of the GMP Board of Trustees, Akeem Oyewale, include Managing Director of Lotus Bank Hajia Kafilat Araoye, Executive Director of Marketing and Sales, Citiserve Ltd Dr. Jubril Salahudeen and Founder and Chief Executive Officer of Baytuzeenah, Hajia Saidat Otiti.

    The event is slated for Oriental Hotel, Victoria Island, Lagos, with theme “Building Bridges of Progress.”

    Oyewale, the Chief Executive Officer of Marble Capital Limited, said the convention promises to be an enriching experience for attendees, featuring a distinguished lineup of speakers, including renowned scholars, captains of industries, entrepreneurs, and life and relationship coaching experts.

    The event, he added, will provide a unique opportunity for participants to gain insights, share experiences, and engage in thought-provoking discussions.

    Read Also: Tinubu expanding horizon of entrepreneurship in Nigeria – Alake

    He said: “This year, the conference will be held over two day. On the first day, our esteemed speakers will address the central theme and other pertinent issues that hold significant relevance for Muslim professionals. The convention seeks to foster connections among Muslim professionals from various industries, offering a unique blend of professional development, faith exploration, and nation-building.

    In addition to professional growth, GMP’s convention offers a platform for spiritual reflection and growth. During the convention, we will provide a space for support, mentorship, and spiritual guidance. Our goal is to empower our members to become successful professionals, role models, and catalysts for positive change.

    Participants can look forward to engaging lectures on Islamic ethics, interfaith dialogue sessions, and discussions to promote understanding and appreciation for diverse religious perspectives in workplaces and life in general.

  • MTN’s move to ‘acquire’ 9mobile creates industry ripples

    MTN’s move to ‘acquire’ 9mobile creates industry ripples

    Fresh moves by MTN Nigeria to acquire the spectrum of the fourth mobile network operator, 9mobile, are generating anxiety as many dread the emergence of a monopolist in the sector. But the Nigerian Communications Commission (NCC) said it will not shut its regulatory prying eyes and allow consumers to be taken for a ride. LUCAS AJANAKU reports.

    When his name was linked to a relatively unknown company, Teleology Nigeria Limited, in the wake of the crises that threatened the soul of a United Arab Emirates (UAE) telecom company, Emerging Market Telecoms Services Limited (EMTS) then trading in Nigeria as Etisalat, the entire industry went to sleep with two eyes closed.
    Adrian Wood became a household name in the telecoms sector having served as pioneer Chief Executive Officer of MTN Nigeria.
    In just six months after superintending over the first call on the global system for mobile communication (GSM) in the country, he was quoted to have said that “business has been good” for the telco. It was believed that MTN, which paid $285 million for one of the four GSM licenses auctioned by the Nigerian Communications (NCC) in January 2001, hit profitability less than a year after it began operations.
    A non-executive director of the board of the company, Wood’s magic wand at the backend, it was thought, would be put to use as the emergence of Teleology Holdings Limited as the preferred bidder for 9mobile, offered yet another opportunity for him to prove his mettle.
    About six years after the takeover of 9mobile by Teleology, there is yet another fresh bid to acquire the spectrum of the company by MTN Nigeria owned by MTN Group of South Africa. The beleaguered youth-centric telco’s difficulties first came to light when its inability to continue servicing loans totalling $1.2 billion sourced in 2013 was reported to the NCC and the Central Bank of Nigeria (CBN) by a consortium of Nigerian and foreign banks.
    Repeated failures to adhere to agreed repayment schedules had caused the banks to initiate take-over procedures, a move which caused its majority stakeholders, Mubadala Development Company of the UAE, to withdraw its shareholding in the company.
    While 9mobile has denied the acquisition move, MTN Nigeria source has insisted that indeed, there are talks in that direction.
    Public Relations Lead at 9Mobile, Chineze Amanfo was quoted to have said: “Our attention has been drawn to the speculated acquisition of 9Mobile spectrum by MTN. We would like to clarify that these assertions are entirely baseless and without factual merit. In the second quarter of 2023, 9mobile invested over N70 billion for ongoing network modernisation. Over 600 new sites, equipped with 4G LTE facilities for enhanced operations and market competitiveness were deployed alongside new broadband services to enlarge our fibre network across Nigerian cities. 9mobile remains focused on meeting the needs and aspirations of our growing customer base through our improved data rollout and innovative products and services.”

    Lust for spectra

    MTN Nigeria has been accused by insiders in the industry of having an insatiable appetite for grabbing spectra.
    It has acquired the spectrum of Visafone, the only surviving operator in the code division multiple access (CDMA) sub-sector of the industry. It was also said to have acquired that of Intercellular.
    Not too long ago, NCC approved the transfer and assignment of 10 megahertz (MHz) of spectrum in the 2.6 gigahertz (GHz) band from OpenSkys to MTN Nigeria.
    The transfer was effective from September 7, 2023, and will be up for renewal on April 17, 2033.
    MTN Nigeria CEO Karl Toriola said the spectrum will enable the telco to roll out its network capacity more efficiently and enhance its sustainability priorities.
    “Not only will it help to support the growing demand for data in the country but will improve the overall Internet experience in line with our commitment to delivering quality service to our customers.
    “Importantly, this also aligns with our ongoing support of the federal government’s plan to deepen broadband penetration in Nigeria,” Toriola said.
    In May this year, NCC approved a spectrum lease transaction that allowed MTN Nigeria to lease 5MHz of spectrum in the 900MHz band and 10MHz in the 1800MHz band from Natcom Development and Investment Limited (NTEL) covering 19 states.
    The lease was effective from May 1, 2023. It will span two years and cost N4.25 billion ($9.2 million at the time), including taxes, regulatory fees and ancillary charges.
    In December 2021, MTN Nigeria and Mafab Communications both gained access to 5G spectrum during the first round of the licensing process paying $273.6 million each.
    That spectrum enabled MTN Nigeria to launch its fifth-generation (5G) mobile internet services in seven cities in August 2022.
    It would be interesting to see what the acquisition of 9mobile spectrum will mean not only for MTN Nigeria’s subscribers but for the country as well.
    EMTS, trading as 9mobile now, was licensed in 2007, acquiring the Universal Access Service Licence (UASL) from the Commission. The licence enabled it to provide fixed telephony (wired and unwired/wireless), digital mobile services, international gateway services and national/regional long-distance services in addition to spectrum assignments in the 900 and 1,800 MHz bands.
    The telco later bought a 3G licence from Alheri Mobile Services Limited, a subsidiary of the Dangote Group, owned by businessman, Alhaji Aliko Dangote. The licence thus put the telco on the same pedestal as the incumbents such as MTN, Airtel and Globacom.

    Reactions

    The PR Lead in 9mobile has clarified that these speculations were ‘entirely baseless and without factual merit,’ saying the telco had invested over N70 billion for ongoing network modernisation; over 600 new sites, equipped with 4G LTE facilities for enhanced operations and market competitiveness were deployed alongside new broadband services to enlarge fibre network across Nigerian cities.
    “9mobile remains focused on meeting the needs and aspirations of our growing customer base through our improved data rollout and innovative products and services,” she said.
    An expert in the industry who spoke in confidence on the subject matter said the choice of the word “acquisition” by the reports remained strong and curious.
    “I know Spectrum leasing is something the regulator has considered. I have been seeing some sensational articles. Worldwide operators from time to time lease one another’s spectrum. Those transactions have never been considered as acquisitions,” the source said.
    Pressed further, he acquiesced to the fact that the understanding of lease in land matters is that the owner of the land allows another person to use it for a specific number of years specified by the agreement after which the land reverts, arguing that in “this case, it is even more intertwined because both can still use the same spectrum during the duration.
    So, even when 9mobile leases its spectrum, that will not mean cessation of offering services on its network as 9mobile.
    “Of course yes. Not only that, it still uses the spectrum in its operations. Spectrum is a range. Specific frequencies can be used in different areas. Network planning takes care of that.”
    On what 9mobile stands to gain in the deals, the source said: “That suggests 9mobile gets nothing out of such a deal. That should be the question if you ask me.
    It’s sort of confusing then why 9mobile should agree to that deal should it finally sail through.
    “Exactly; there must be a benefit to both parties. But we are only focusing on MTN, understandably,” the source said in a series of WhatsApp chats at the weekend.
    The National President of the National Association of Telecom Subscribers (NATCOMS), Deolu Ogunbanjo has faulted the move by MTN Nigeria to swallow 9mobile, adding that it would make the former too powerful because it currently controls over 50 per cent of the entire industry subscribers.
    He was quoted to have urged the NCC to frustrate the transaction as it was capable of birthing the era of an oligopoly in the industry.
    “I must say that it is a bit surprising that MTN is now trying to talk to, you know, another mobile operator and in particular through the NCC to now acquire another spectrum belonging to another mobile network operator. I mean this should not be encouraged because MTN already has close to 50 per cent of Nigeria’s telecoms market subscription and then you have another mobile network operator with less than 10 per cent of the subscription.
    “Do you want them (to go) extinct? Why do you want to talk to them? Do you want to acquire them because by the time you do not get the spectrum, the next thing will be that you want to acquire them, meaning MTN will now have between 50 and 60 per cent of the total telecoms subscription in Nigeria and that is a form of oligopoly? It is an oligopoly in the sense that they will become three major players however a particular player now has a lot of influence which is more than 50 per cent.
    “That should be taken with a pinch of salt and should not be encouraged because MTN will become so powerful to the extent that it will now be dictating the pace of whatever it wants to do in the telecoms industry in Nigeria, that is what would obtain because it is having over 50per cent and getting close to 60 per cent of Nigeria’s total telecom subscription. “I do not understand why the mobile network operator in question is now allowing MTN through the NCC to have a shot at their spectrum,” Ogunbanjo was quoted to have said.

    NCC reacts

    The Director of Public Affairs at the NCC, Reuben Muoka said the Commission is not going to play the role of an interloper in a strictly business deal between two private entities. He, nonetheless, pledged to protect the interest of the subscribers against any predatory operators.
    He said: “We don’t react to an ongoing commercial decision of two operators. Our spectrum trading laws are there. NCC will not be reporting the progress of their negotiations or transactions.
    “You said we are not saying anything. Does it suggest they are getting the spectrum from NCC? “What will NCC say about the transaction between two companies? It is from them that you will get information and updates.
    “Ours is that if any of the parties seek information regarding the regulatory standing of the other, we shall provide if it sufficiently informs the commission why the information is necessary; otherwise, we won’t be in the room where the negotiation is going on.
    “They can only come when they consummate (their agreement) to seek approval. The rules are clear about spectrum trading with safeguards for subscriber interest. If the transaction will affect the industry negatively, NCC will be available to guide and advise with the application of the relevant rules. That is why the Commission is a responsible regulator.
    “If an operator becomes dominant, there’re responsibilities imposed on it to mitigate such dominance so the matter of a monopolist arising does not arise.
    “Also recall there was a time of exclusivity period which no longer exists. The important thing is to allow the industry to play by the rules.
    “It would amount to micromanaging for NCC to read about two companies negotiating under spectrum rules and jump in to start directing.”

    Red Also: Perform or be fired, Tinubu tells NNPCL board

    There are, however, provisions in the Nigerian Communications Act (NCA) 2003 which the NCC had invoked to stop the hostile take-over of Etisalat (as it was then called) by local lenders.
    “Accordingly, the Commission has drawn the attention of the banks to provisions of the Nigerian Communications Act (NCA) 2003 Section 38: “Sub-section 1–The grant of a license shall be personal to the licensee and the license shall not be operated by, assigned, sublicensed or transferred to another party unless the prior written approval of the commission has been granted; “Subsection 2 – A licensee shall at all times comply by the terms and condition of the license and the provision of this act and its subsidiary legislation,” NCC had said in a statement.
    Ogunbanjo’s fears might not be baseless after all. According to NCC’s August subscriber stats posted on its website, of the total 220,715,961 subscribers, MTN has the largest number with 85,005,917 representing 38.58 per cent of the global system for mobile communication (GSM) market while 9mobile has 13,791,079 representing 6.26 per cent.

    Long road to 9mobile
    metamorphosis

    The road to the emergence of 9mobile has been long and tortuous. After the exit of the investors from UAE’s Etisalat, which had a 45 per cent stake in the Nigerian business, which said its exposure to Etisalat Nigeria related to services was worth 191 million UAE dirhams ($52 million) the search for new owners earnestly began.
    No fewer than 16 firms initially expressed interest and filed bids for the soul of 9mobile.
    The former Executive Vice-Chairman/CEO of NCC, Prof. Garba Danbatta under whose watch the crisis began, announced the five entities that emerged as bidders for 9Mobile. He listed them as Globacom, Airtel, Smile Communications, Helios and Teleology Holdings Limited. The five were part of the 16 firms that initially expressed interest and filed bids with Barclays of Africa, 9mobile’s financial advisor.
    They include MTN, ntel, Virgin Mobile from the United Kingdom and Vodacom of South Africa. Others are BUA Group, Morning Side Capital Partners, Obot Etiebet and Co, Blackstone Private Equity, and Hamilton and George International Limited.
    The NCC boss had said: “Five bidders have emerged for 9mobile. They have been allowed to access the data room of 9mobile to enable them to access the financial situation of the company and subsequently make bids for the takeover of the company. But the takeover must be in a regulated manner.
    “The CBN and NCC are supervising what is going on through an interim board jointly appointed by the NCC and CBN. We are going to do due diligence on the financial capacity of any potential bidder as well as the technical capacity.
    “In the final analysis, we would like to see a 9mobile taken over by a bidder who has the financial and technical capacity to improve on the operations of the telco and add value in the delivery of qualitative telecom services in the country.”
    Airtel pulled out of the bid for 9mobile. Globacom and Helios Investment Partners (LLP) submitted bids but failed to attach any cash for the troubled telco to Barclays Africa.
    Teleology Holdings Limited submitted a bid over $500 million while Smile Telecoms Holdings quoted close to $300 million.
    Effectively, only two companies made financial offers by the January 16, 2018 deadline. Going by the financial bid submitted by the two firms, Teleology Holdings Limited naturally emerged as the preferred bidder and Smile Telecoms as the reserved bidder.

    Airtel, Smile dissent

    Airtel’s U-turn came as a surprise to industry experts who had expected the company to push all the way through to become the largest operator in the country.
    It would automatically have grown from being number three to number one by increasing its numbers to 52 million for voice and 33.5 million for internet had it emerged as the preferred bidder.
    Airtel allegedly decided to pull out because “many things are not too plain with the entire process. Airtel is not interested in 9mobile because it sees little value in the company,” a source said.
    Another source said the Indian carrier did not have sufficient information to make an informed bid.
    “Airtel believes too many things are hidden about the health of 9mobile, and that it is too risky for anyone to buy the company. Things became compounded with the court case by Spectrum Wireless. Remember the Strive Masiyiwa case over the ownership of Econet which hurt the company for a long time,” an insider said.
    Spectrum Wireless, an EMTS shareholder–which owns the 9mobile licence–went to court against United Capital Trustees Limited–representatives of the debtors–to stop the constitution of an interim board for 9mobile after the take-over in July 2017.
    Although it lost the case, the Federal High Court later nullified the ex parte order and United Securities went on appeal.
    Smile Telecoms Holdings Limited decried the tardy manner in which Barclays Africa handled the sale of 9mobile. It called for a process review to uphold transparency. Smile wrote a letter addressed to Barclays Africa dated February 21, 2018, and signed by Templars; the company’s solicitors.
    It also expressed surprise and disappointment at how the selection process for the preferred and reserve bidders was conducted. Of particular concern to Smile was the fact that the selection of the preferred bidder was announced before the February 26, 2018 deadline. The company therefore asked for Barclays, to be a matter of fairness and urgency, to provide a proof that the company that has been selected as the preferred bidder has indeed satisfied all the conditions precedent to that selection.
    However, in its reply of February 26, 2018, Barclays Africa promised to “be in touch with Smile to discuss any updates on the Transaction, to the extent considered necessary.” It expressed gratitude for Smile’s continued interest in the transaction but noted that its clients exercised their rights at their sole discretion to pursue an alternative path to completion of the transaction. Barclays restated its willingness to explore transaction completion with Smile should the pending process not reach a satisfactory conclusion.
    Smile insinuated that Barclays Africa’s letter evaded the critical issues of due process and eligibility of the announced preferred bidder, wondering if the bidder was able to meet the laid down requirements for the transactions to reach an agreement on any financial accommodations with the syndicate lenders and the trade creditors. The requirement also entailed the preferred bidder to have firm, unconditional and committed funding for any cash payments and to provide a binding offer that is unconditional, excluding the formal licence approvals.
    NCC’s intervention came on the heels of news that Teleology Holding had emerged as the preferred bidder for 9mobile. The announcement was greeted with protests in some quarters. A non-governmental organisation, Business Renaissance Group (BRG) had protested against the process, accusing Barclays Africa of sending the letter to Teleology in a hasty and pre-emptive manner. The group stated that Barclays Africa jumped the gun in announcing a preferred bidder. It noted that in a meeting held with the interested bidders on January 26, 2018, Barclays gave the two finalists in the bid process – Teleology Holdings and Smile Telecoms Holdings – the opportunity to raise their bid within 30 days, extending the deadline to February 26, 2018.
    The group wondered why Barclays could not wait till the agreed date before the hasty announcement of a preferred winner. Also alleging bias against Barclays in the handling of the sale of 9mobile, BRG recalled that Barclays had earlier affirmed that any preferred bidder on selection would need to sign a Sales Purchase Agreement immediately and would have to instantly pay a non-refundable deposit of $50 million.
    It decried a situation where Barclays gave its preferred bidder 21 working days to pay the non-refundable fee of $50 million. The group further underscored its allegation of a less than transparent handling of the entire bid process by Barclays Africa by recalling that some of the earlier entrants, among them two major GSM network operators, had opted out of the process alluding to lack of transparency.
    It also claimed that, at least, two major vendors of 9mobile rejected the financial offers of the preferred bidder and had no confidence in the weak and unrealistic business plan presented. It wondered how such a bidder with questionable business plans would be able to sustain and improve the operations of 9mobile. BRG contended that the precipitated announcement by Barclays is indicative that the preferred bidder did not satisfy any of the precedent conditions.
    Sector analysts are waiting anxiously to see how the new MTN Nigeria push for the soul of 9mobile will pan out.

    QUOTE

    That should be taken with a pinch of salt and should not be encouraged because MTN will become so powerful to the extent that it will now be dictating the pace of whatever it wants to do in the telecoms industry in Nigeria. That is what would obtain because it has over 50 per cent and getting close to 60 per cent of Nigeria’s total telecom subscription. I do not understand why the mobile network operator in question is now allowing MTN through the NCC to have a shot at their spectrum

  • MTN: No going back on 2,500 sites tower contract to ATC

    MTN: No going back on 2,500 sites tower contract to ATC

    MTN Nigeria has taken note of media reports saying that IHS Towers has offered the company improved terms for the lease of 2,500 sites that match the terms of ATC, which recently won the contract following a highly competitive bidding process.

    The telco said these reports are not true and MTN has not received any revised offer from HIS, saying it announced in September that the lease for the 2,500 sites (which was due to expire in 2024 and 2025) had been awarded to ATC after a very fair and transparent procurement process.

    Its Chief Corporate Services and Sustainability Officer Tobechukwu Okigbo, in a statement, said: “The agreement with ATC over the 2,500 sites is final, having gone through a rigorous process involving our highest governance approvals.

    Our preference is always for bilateral renewal, subject to competitive pricing and terms. In this instance the ATC proposal was superior.”

    MTN said it will continue to engage constructively with IHS on further opportunities that arise, including the renewal of the next vintages of towers that come up for renewals in 2025.

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    “Other opportunities for value optimisation will arise and we will undertake a similar exacting process. We are hopeful that participating parties including IHS will present a compelling proposition,” Okigbo said.

    He dismissed allegations that contracting the sites to ATC would lead to network disruptions and have a negative environmental impact: “Such allegations are factually incorrect and misleading. Tower transfers between two infrastructure companies do not necessarily lead to network disruption.”

    MTN is confident that ATC’s plans will ensure a smooth transition between towers.

     ”Through our partnership with ATC, we are setting the stage for a new era of connectivity in Nigeria, one that not only meets the growing demands of our customers but also aligns with our focus on expense efficiencies, commitment to sustainability and environmental responsibility,” Okigbo said.

    MTN expects ATC to adhere strictly to the guidelines of the Nigerian Communications Commission (NCC) and National Environmental Standards and Regulations Enforcement Agency (NESREA) regulations on deploying telecoms sites.

     ”We are deeply committed to achieving net-zero emissions and part of the differentiated value ATC provides is a commitment to operating green sites ensuring significant reduction in carbon emissions. Contrary to the allegations of harmful environmental impact, the partnership with ATC will reduce greenhouse gases,” he said.

  • N50m up for grabs as MTN Best of the Streets unveils top 20

    N50m up for grabs as MTN Best of the Streets unveils top 20

    After weeks of an intense search for the nation’s raw talents, MTN Best of the Streets 20 has finally been unveiled. 

    According to a statement, The CREAM Platform witnessed an overwhelming response from talented individuals nationwide, showcasing their skills and creativity.

    The stage is now set for the grand unveiling of the Top 20 talents discovered, marking a significant milestone in the MTN Best of the Streets contest. 

    The statement further said the journey has revealed an incredible pool of raw talent, with each participant passionately vying for the grand prize that could launch them into stardom.

    “The dedication and passion displayed by each contestant have propelled them to this crucial stage of the competition, where the journey to stardom truly begins. “

    The coveted grand prize includes a staggering ₦50 million, a car, a music video opportunity, and an EP deal, offering life-changing opportunities for the deserving winner.

    Powered by collaborations among top firms like MTN Nigeria, CREAM Platform, Parallex Bank, Mikano Motors, and Create Music, the talent hunt features 20 contestants, including notable names like Sheun Natural, Kokoboy, Fazzie Lee, William, Flare, and Joy Indiana, all set to compete fiercely.

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    In addition to these established talents, promising newcomers such as Balo Flash, Lord Yung Zee, Don, Jaybon, Kazzim Daniels, Miya, Fabulous, Pablo, and Lil Qhuid are also in the race, aiming to seize the coveted prize money.

    The organisers, in a released statement, emphasised that this unveiling is just the beginning of an incredible journey as they remain committed to discovering and showcasing the most exceptional street talents in Nigeria. 

    Other contestants include Boymvgicivn, Specikinging, Ajao Temidayo, Finest Alpha, Balo Flash.

    The anticipation for the contest’s outcome is palpable as the talents gear up for an unforgettable competition that could shape their futures in the music industry.

  • MTN CHAMPS Abuja grand final gets date

    MTN CHAMPS Abuja grand final gets date

    MTN CHAMPS is sponsoring 30 athletes comprising MVPs and ‘Golden Performers’ – from Benin, Uyo and Ibadan legs of the competition to the Grand Final holding at the Moshood Abiola Stadium Abuja, from December 1-3, 2023.

    While the MVPs from the previous locations to be sponsored will be announced soon and will join the Grand Final at the semi-final or final stages of each of their events, there will still be a points system for the best schools and overall Junior team, and the 30 MVPs from the other locations will compete in a ‘Team MVP’ in the Cadet, Youth and Junior categories.

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    As with other locations, the schools registered in Abuja will contest the Cadet and Youth school titles, while Team MVP will go up against the other U-20 teams for the Junior Girls’ & Boys’ team trophy.

    In addition to that, there will be six MVPs recognised in Abuja (excluding the previous MVPs), and finally, the best 20 athletes for the whole season according to their performances in Abuja, will be announced at the end of the championship as part of the shortlist to select 10 for the Academy in 2024.

    In addition to the existing 4x100m, the MTN CHAMPS Grand Final will also witnessed the 4x400m event in  the Cadet and Youth categories on the final day.

  • MTN named as headline sponsor Of NLO Cup

    MTN named as headline sponsor Of NLO Cup

    The Nationwide League One (NLO)  has announced MTN Nigeria  as the headline sponsor of the NLO Cup.

    Sixteen best teams will ignite the maiden edition of the NLO Cup which kicks off on November 24 to December 9 at the Sani Abacha Stadium, Kano and Uyo Township Stadium, Uyo.

    Chairman of the nation’s third-tier league , Silas Agara announced the ground-breaking development  via the  NLO Media Channel.

    “On behalf of the leadership of the NLO, we are delighted to announce MTN as the headline sponsor of the NLO Cup. 

    “The NLO Cup tourney was conceived as a medium to celebrate teams that have excelled in the graduation from the State League to NLO U19 and from the Youth League to the NLO Division One.

    “The credibility of the NLO over time has made MTN pitch their tent to the nation’s third-tier domestic league for this project. The project is a success of this partnership in a discussion of over two years, with NLO and MTN to have come to this stage.

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    “MTN as a responsible corporate organization wants to support Nigerian youths through grassroot football development, as they have identified football as the major source of joy for over 60 percent of the youths.

    “The telecommunications brand has identified the Nationwide League One  (NLO) as the most critical source and reliable partner to achieve that aim; at the same time.

    “MTN will be using the NLO to push their MoMo Money to the minds of all Nigerian youths as a safe platform, to save, do business with their money, and a whole lot of things.

    “They will also be dishing out a whole lot of freebies and gift items,  to youths that hit the stadium to watch the NLO Cup matches. The telecommunications brand wants to rejuvenate the way Nigerian youths participate in football,” he added. 

  • Abuja set for MTN CHAMPS grand finale

    Abuja set for MTN CHAMPS grand finale

    Moshood Abiola Stadium in Abuja will come alive  between December 1 and 3 for the grand final of the MTN Schools’ Athletics Championships tagged MTN CHAMPS.

    Being the fourth and final leg of the nationwide series of the secondary school Athletics Championships was initially billed to hold  between 29th  November  and 2nd  December. However, based on the new dates, the competition will now be staged for three days as registration is still ongoing for MTN CHAMPS Abuja, and with over 500 Athletes currently registered.

    At the previous three legs in Benin, Uyo and Ibadan, the age limit of the junior category was relaxed on location from U-20 to U-23 to accommodate more athletes within Track Clubs and Universities, and that change from U-20 to U-23 has also been extended to the Grand Final in Abuja.

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    Meanwhile, organisers of the tournament,  Making of Champions (MoC) has appealed to athletes  to support efforts to eradicate systemic age cheating by using their real ages at the MTN CHAMPS Grand Final and in future.

    MoC expressed worry over age cheats, adding despite the fact that appropriate age groups have been provided for the athletes, there are still widespread age discrepancies across all three age categories – cadet (U14) and youth (U17) categories which were strictly for Secondary Schools only, and juniors (U20) which was open to all other teenagers.

     “We are appealing to Schools, Parents and Coaches to ensure that their wards are all using their real ages to compete so they don’t have to lie about such for the rest of their lives,” Deji Ogeyingbo, MoC Country Manager, said. “Thanks to MTN, there is now a competition for every age group, so there is no longer any need for athletes to be untruthful about their ages to get a fair chance to compete and be successful in the sport.”