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Tag: MTN

  • MTN registers 20b shares with SEC

    MTN Nigeria Communications Plc (MTN) says it has successfully completed the registration of 20,354,513,050 ordinary shares of N0.02 each with the Securities and Exchange Commission (SEC).

    Its Chief Executive Officer, Ferdie Moolman, broke the news in a statement yesterday.

    Moolman said the completion of the process set in motion the next steps in MTN’s intended listing by introduction on the Nigerian Stock Exchange (NSE).

    “I am excited we have achieved another milestone in our listing process and want to thank the SEC and the Corporate Affairs Commission (CAC) for supporting us through the process.

    “We have now begun to engage with the Nigerian Stock Exchange (NSE) to complete the listing process,” he said.

    Moolman said MTN was guided by a vision to lead the delivery of a bold new digital world, adding that its leadership position in coverage, capacity and innovation had remained constant, since its launch in 2001.

    The telco had changed its status from a private company to a public limited company in preparation for its listing on the NSE.

    Read also: Sterling Bank seeks energy sector reform

    The company hopes to complete its listing by introduction on the exchange by July.

    Meanwhile, the Federal High Court (presided over by the Honourable Justice Aneke), has rejected the Notice of Preliminary Objection filed by the AGF in response to MTN’s lawsuit. The substantive case is now scheduled to be heard on June 26.

    MTN took the legal action after receiving a demand notice from the AGF alleging unpaid duties and taxes running into $2billion between 2007 and 2017. The suit challenges the authority of the AGF to deal with issues around tax and custom duties. According to the law, oversight for this is the responsibility of the Federal Inland Revenue Service (FIRS) and Nigerian Customs Service (NCS).

    The court heard arguments on the AGF’s preliminary objection on March 26, 2019. At the time, the AGF requested that MTN’s suit be dismissed because it was not filed within the appropriate timeframe, which the AGF asserted was within three months of receipt of the initial request for a self-assessment. Having considered the matter, the judge determined that MTN’s suit was not statute-barred, as the company was only required to file its case within three months of receipt of the actual demand notice, which it did.

    Even if the court ultimately rules that the AGF is within its rights to assess taxes and duties, it does not imply that the assessment that has been made is legitimate.

    MTN maintains that it is fully compliant with Nigerian tax laws. The company remains committed to meeting its fiscal responsibilities, and to contributing to the social and economic development of Nigeria.

    Since incorporation in 2001, MTN has invested more than NGN2 trillion into the Nigerian economy and has paid more than N1.7 trillion in taxes, levies and other regulatory fees.

  • MTN ready for listing on Stock Exchange

    Telecoms giant MTN Nigeria Communications yesterday took a huge step towards its listing on the Nigeria Stock Exchange (NSE), with its conversion from a private to a public company.

    In a statement, it said it had completed its conversion, describing the exercise as a legal requirement and key milestone preparatory to its listing by introduction on the Exchange’s floor.

    The listing will create a new telecoms asset class for investors and provide more Nigerians opportunity to participate in MTN’s business.

    The listing is one of the final settlement conditions for the huge fine imposed on MTN by the Nigerian Communications Commission (NCC) for subscribers’ identity module (SIM) registration infraction.

    Its Chief Executive Officer (CEO), Ferdi Moolman, said: “Our conversion to a Plc is a major step towards listing by introduction on the Nigerian Stock Exchange in the first half of 2019.

    “It is a reaffirmation of our long-term commitment to expanding investment opportunities for Nigerians, in addition to providing everyday services to them. We look forward to continuing our engagement with the Securities and Exchange Commission (SEC)  and NSE to take forward the listing process.”

    Read also: MTN tackles fake news, hate speech in journalists training

    Last month, the telco unveiled its earnings for the 2018 financial year, recording growth above inflation in full service revenue (17.2 per cent) and the addition of nearly six million new subscribers to the network.

    The company announced earnings before interest, taxes, depreciation and amortisation (EBITDA) of N453.1 billion and expanded EBITDA margins to 43.6per cent (excluding the Central Bank of Nigeria (CBN) resolution amount).

    It added 4.5 million active data customers during the year, delivering data revenue growth of 39.3per cent and expanding to 18.7 million the number of people that it connects to the possibilities that the internet provides.

    Moolman said: “Nigeria is one of the largest markets within the MTN portfolio and central to its growth strategy.”

    “The upcoming listing is a key milestone for the MTN group and is part of its commitment to localisation in the markets in which it operates.”

  • MTN tackles fake news, hate speech in journalists training

    Journalists in Abuja were recently taken through a training session to enhance their capacity.

    The focal point of the one-day intensive training for senior journalists in Abuja was how to discern the dangers of fake news and hate speech which were becoming more visible in daily news reportage, especially on the social media.

    Packaged by the communications giant, MTN, the session was part of MTN’s strategies for effective communication in the country, the Organisation sad.

    Tagged “Strategies for effective communication,” the resource persons included, Nkechi Ali-Balogun, the Principal Consultant of NECCI Consulting Ltd, who spoke on Crisis Communication and the New Media.

    Oludare Ogunyombo, who had worked as resource person and head trainer to the United Nations Children Fund (UNICEF) spoke on leadership and organisation culture as enablers in Media practice.

    Hope Afoke Orivri, a mass communications specialist and broadcaster gave an insight into aspects of fake news, hate speech and alternate truth as threat to the future of the media

    And leadership and management expert, Dr. Okey Ikechukwu who is also a human capital development and communications consultant, discussed the ethical issues of social media in journalism

    All participants had fun especially during the interactive sessions during which various ideas were shared amongst the journalists and resource persons, and doubts on  current concepts and theories n the sector were cleared.

    Read also: MTN unveils FibreNet in Abuja

    The Senior Manager, External Relations MTN, Funso Aino, said that the training session for journalists was also one of the ways MTN gives back to the society that has been wonderful to it.

    He said, “We do capacity building for journalists because the media is a critical stakeholder in MTN’s business in Nigeria. So in furtherance of efforts at contributing to capacity building within the media, we always seek new opportunities to impart knowledge and skills into journalists in the course of their jobs.”

    The  objective of the training, according to him, was to “Enhance skills and industry knowledge of media practitioners; Improve relationship with the Nigerian media; Equip participants with requisite training tools and techniques; Improve participants’ competence, efficiency and effectiveness on their jobs; and to Improve strategic thinking and decision making ability amongst the journalists.”

    The participants received illumination of various aspects of the subjects considered and expressed their appreciation for the training and requested that it should be a continuous annual exercise so as to benefit more reporters in the Federal Capital Territory.

  • NCC, MTN collaborate on regulations

    The Nigerian Copyright Commission (NCC) and MTN Nigeria Communications Limited are collaborating to strengthen copyright regulations to ensure adequate reward for copyright owners and users across the country.

    The commission made this known after a consultative meeting with NCC’s Director-General (DG), Mr John Asein and a delegation of MTN, led by its General Manager, Commercial, Legal Corporate Services Division, Mrs Ifeoma Utah.

    Accompanied by MTN’s Manager, Regulatory Government, Mr Anas Galadima, and Legal Advisor, Mr Chukwukaelo Ajuluchukwu, Utah stated that MTN was interested in exploring a deal aimed at ensuring that the commission achieves its statutory mandates, especially in the implementation of regulations that would protect all stakeholders in the copyright system.

    While congratulating the DG on his appointment, she underscored that the collaboration of MTN with the commission would be on a long-term basis. She stressed the need for periodic Intellectual Property (IP) updates and awareness training for critical sectors, including the Bar and the Bench, assuring the commission of the firms collaboration in achieving results.

    According to a statement, signed by NCC Director, Public Affairs Department, Vincent Oyefeso, the DC underscored the commission’s commitment to promoting the policy of the Federal Government on the ease of doing business, especially to ensure sustainable growth and development of the creative industries.

    He added that the commission would create an environment conducive for all players in the copyright space to grow their business profitably within the ambit of the copyright law and regulations.

    To this end, he hinted that the commission was developing an institutional framework to provide alternative disputes resolution (ADR) services to stakeholders to engender a win-win situation for copyright owners and users.

    Asein informed that the Copyright Amendment Bill was drafted to bring about a more functional copyright regime, adding that the Bill has been sent to the National Assembly while the Commission is engaging with stakeholders to facilitate its passage.

    He stressed that the Commission was committed to midwifing a copyright system that empowers right owners and users, and called for dialogue and more opportunities to create awareness amongst right owners who must remain the primary beneficiaries in the copyright ecosystem.

    The DG noted that MTN as a  major player in the communications, social and creative sectors needed to expand its corporate social responsibility in order to promote and sustain the creative sector.

    He invited MTN to key into the programmes and activities of the commission, including its forthcoming 30th Anniversary.

  • Lawyer seeks to stop MTN’s stock market listing

    A Lagos Lawyer Dr. Charles Mekwunye  has asked the Securities and Exchange Commission (SEC) to stop telecoms giant, MTN from listing its shares on the Nigerian Stock Exchange (NSE).

    In a March 18 letter, Mekwunye, of Charles Mekwunye and Co, stated that MTN could not list its shares on the market because of a suit before the Supreme Court concerning the “massive” divestment of its assets.

    The letter claimed that MTN had been unfair to the Nigerian public and regulators by allegedly not disclosing the pendency of a civil matter over its shares when it recently announced its proposed initial public offer.

    In the letter to SEC, Mekwunye said: “We are disappointed that you have refused and/or failed to call MTN to order in the light of recent publications relating to its proposed Initial Public Offer (IPO) without any reference whatsoever to the appeal pending before the Supreme Court involving the massive divestment of its assets.

    “We consider the move by MTN as unfair, misleading, and a calculated attempt as usual to defraud the Nigerian economy and the Nigerian investing public.

    “Please be advised that under Nigerian law and jurisprudence, MTN cannot disrespect the Supreme Court by interfering with the subject matter of litigation before the apex court in the land.”

    Mekwunye, in 2008, sued MTN, Lotus Capital and Stanbic IBTC Asset Management, IHS Holding LTD and INT Towers Ltd at the Federal High Court for alleged breach of contract in the divestment of MTN assets.

    Mekwunye claimed at the lower court that MTN, through its appointed nominee, Stanbic IBTC Asset Management and LOTUS Capital, defaulted in a share investment agreement with him.

    He urged the court, to restrain MTN from listing its shares on the stock market pending the determination of the suit.

    Justice Mojisola Olateru, while ruling on a preliminary objection raised by MTN on the competence of the suit,  asked parties in the suit to explore the arbitration clause embedded in the contract.

    Dissatisfied with the ruling of the lower court, Mekwunye filed a motion on notice on February 26, 2018 at the Court of Appeal.

    He argued that an arbitration clause in agreement between him and MTN cannot be used to determine the suit involving IHS Holdings Ltd and INT Towers Ltd who are not parties to the arbitration clause.

    The Court of Appeal, in its ruling, also asked parties in the suit to pursue arbitration earlier pointed out by the lower court.

    Still not satisfied with the appellate court’s ruling, Mekwunye approached the Supreme Court, insisting that the crux of the matter is the failure of the respondents to list MTN shares on NSE in 2011 as agreed by parties and that until the suit is properly determined, MTN ought not to be allowed to list its shares at the stock market.

  • MTN, StarTimes partner on special bundle

    StarTimes has partnered MTN, the largest information communication technology company in Africa to offer mobile internet subscribers on the network a special data bundle for StarTimes ON mobile app.

    With the video Streaming bundles on StarTimes “ON” App, MTN subscribers can now enjoy unlimited entertainment and video on demand (VOD) service at a cheaper data price than any other network in Nigeria.

    Speaking on the development, The General Manager, Data & Devices, MTN, Abiodun Ajayi, said: “With a data bundle of N150, subscribers can enjoy up to 60 minutes of streaming time on StarTimes ON by simply sending ST1 via SMS to 131 while for N400 customer gets up to 180 minutes of streaming time by sending ST3 via SMS to 131.”

    Also commenting, The OTT Director at StarTimes Nigeria, Tony Tuo said that all MTN subscribers would also enjoy five premium channels that offer news, music, religion, movies and other entertainment content for free on StarTimes ON, a service which users of other networks have to pay to gain access to.

    According to Tuo, “StarTimes ON currently boasts of 3.5 million users in Nigeria and over 12 million across Africa, making its partnership with MTN the latest in an industry where it has become a common trend for telecoms and video operators to partner towards an effective delivery in a market where VOD and live streaming is on the rise.”

    StarTimes ON has more than 70 channels with over 40 of them free to users.

  • Court to rule on AGF’s objection to MTN’s suit May 7

    The Federal High Court in Lagos on Tuesday reserved ruling on a preliminary objection by the Attorney-General of the Federation (AGF) challenging a N3billion suit by MTN Nigeria Communication Ltd.

    MTN sued the AGF for demanding N242 billion and $1.3 billion as import duties and withholding tax assessments from it.

    By a September 10, 2018 writ, MTN is challenging the legality of the AGF’s assessment of the import duties, withholding tax and value-added tax.

    But, the AGF, in the preliminary objection, is arguing that the suit was statute-barred, thus robbing the court of jurisdiction.

    Arguing the motion on Tuesday, AGF’s counsel Mr Tijani Gazali urged the court to strike out the suit on the ground that was instituted outside the time prescribed by law.

    He said the AGF was covered by Section 2(a) of the Public Officers Protection Act, so there was no issue of abuse of office.

    He said rather than MTN responding to the demand, it filed the case.

    But, MTN through its counsel Chief Wole Olanipekun (SAN), who led Damia Dodo (SAN) and Prof Fabian Ajogwu (SAN), argued that the AGF’s objection was unfounded.

    MEN’s lawyers maintained that the AGF’s contentions were unacceptable and unknown to law.

    They argued that the cause of action actually crystalised when the AGF made a demand of MTN and threatened the company with court action on August 20.

    Previous correspondence from the AGF was acted upon in good faith by the company, Olanipekun continued.

    He revealed that the previous correspondence had requested a self-assessment.

    He posited that the organisation not only undertook the self-assessment but went ahead to submit the result of that process to the AGF’s office.

    The assessment, he said, was undertaken by KPMG and showed clearly that no back taxes were owed to the country.

    He said AGF’s letter heightened issues and led to the company seeking to protect itself from the unlawful actions of the AGF.

    The learned SAN further argued that to the extent that the letter has not been withdrawn, the cause of action continues to exist.

    Therefore MTN remains within its rights to approach the courts, he said.

    Counsel to AGF was asked directly whether the cause of action had been withdrawn, but he declined to respond.

    Olanipekun further posited that from the AGF’s pleadings his office had admitted the submission of MTN in so far as his main argument is not in response to the core issues raised by MTN, but to whether or not the AGF is protected in law from the consequences of his actions.

    The SAN argued that it is implicit in the AGF’s failure to address the substance of MTN’s case, that the AGF is aware it does not have the legal authority to take the action it has taken.

    The AGF is contending that the suit disregarded Section 2 of the Public Officers Protection Act, which provides that any lawsuit against a public officer must be within three months of what was complained of.

    But, MTN is seeking a declaration that the AGF’s demand of N242 billion and $1.3 billion from it was premised on a process that is malicious, unreasonable and based on incorrect legal reasons.

    The plaintiff said the purported “revenue assets investigation” carried out by the Federal Government for the period of 2007 – 2017 violated Section 36 of the 1999 Constitution.

    MTN is praying the court to declare that the AGF acted in excess of his powers by directing a “self-assessment exercise” which usurps the powers of the Nigerian Customs Service to demand duties on imported physical goods.

    It is seeking a declaration that the AGF acted illegally by also usurping the powers of the Federal Inland Revenue Service (FIRS) to audit and demand remittance of withholding tax and value-added tax.

    The plaintiff wants declaration that the purported “self-assessment” exercise instituted by the AGF via its letter of last May 10 is unknown to law, null and void and of no effect whatsoever.

    MTN is further praying the court to for an order vacating the AGF’s demand letter.

    It is claiming N3billion as general and exemplary damages as well as legal costs from the Federal Government.

    Justice Chukwujekwu Aneke adjourned until May 7 for ruling.

  • MTN yet to submit application for listing, says SEC

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has said that MTN Nigeria has not filed any application that could kick-start regulatory consideration of the proposed listing of the telco on the Nigerian stock market.

    SEC stated that while there had been some engagements with the telco, MTN Nigeria or its professional parties have not filed any formal application with the apex capital market regulator.

    MTN recently indicated it plans to list its shares by way of introduction, rather than the initial plan of an Initial Public Offering (IPO).

    By way of introduction, MTN Nigeria’s existing shares will be admitted to the Daily Official List of the Exchange for trading. MTN indicated it plans to list before the end of this first half.

    READ ALSO: MTN Nigeria to list on Stock Exchange

    Under the extant rules, a private limited liability company seeking to list its shares shall convert to public limited liability company and register its shares with SEC.

    For listing by way of introduction, the company will then apply to the relevant Exchange for listing.

    In the case of IPO, the company will apply to SEC for approval of the IPO and the relevant Exchange if it intends to list after the IPO.

    Briefing newsmen after the meeting of the Capital Market Committee (CMC) in Lagos, Acting Director General, Securities and Investment Services, Securities and Exchange Commission (SEC), Ms Mary Uduk, noted that there is an established due process for listing and issuance of securities in the Nigerian capital market, which forms the basis for regulatory consideration.

    “There is no formal application as at now, until when they file application, that’s when we will know what method of listing they want,” Uduk said.

    MTN Nigeria had in 2016 appointed an advisory team and set out a road map towards listing on the Nigerian Stock Exchange (NSE) in 2017.

    The telco however missed the 2017 target and has since been struggling with the listing.

    The board of MTN Nigeria had announced the appointment of Stanbic IBTC Capital Limited and its affiliates, Standard Bank of South Africa Limited and Standard Advisory London Limited and Citigroup Global Markets Limited as the joint transaction advisors and joint global coordinators for the proposed listing of MTN Nigeria on the NSE.

    It should be recalled that as part of the conditions to settle its $3.4 billion fine by the Nigerian Communications Commission (NCC), MTN Nigeria had announced its intention to list its shares on the NSE as soon as commercially and legally possible.

  • Three face charges over MTN, Airtel, 9Mobile lines

    Three men yesterday re-appeared at a Federal High Court in Lagos for allegedly meddling and tampering with the telecoms lines of MTN, Airtel and 9Mobile.

    They are Chinonso Nwangwu, Udoka Nwaru and Emmanuel Okpogwu.

    They were first arraigned before Justice Ibrahim Buba, who has been transferred to another division of the court.

    They were re-arraigned before Justice A. Liman, following an amendment of the charge by the prosecutor, Mr. Daniel Apochi.

    Read also: ‘Why MTN listing is delayed’

    The defendants pleaded not guilty and were allowed to continue on the bail granted them by Justice Buba.

    The case continues on April 13.

    The defendants were alleged to have committed the offence in April 2015, in Enugu, Lagos, Ogun and Oyo states and other places within the court’s jurisdiction.

    The prosecution alleged that the defendants tampered and meddled with telephone wires of MTN, Airtel and 9Mobile, all managed by Biswal Ltd.

  • ‘Why MTN listing is delayed’

    MTN Nigeria’s planned listing on the Stock Exchange would be actualised when its alleged outstanding $2billion tax issue is resolved.

    The explanation came yesterday when MTN’s Chief Executive Officer, Ferdi Moolman, addressed  the media on several issues, including the firm’s 2018 financials and its expansion drive, among others.

    He said MTN Group  plans to push ahead with the initial public offering of its Nigerian unit once the compay resolves a $2 billion tax dispute in the country.

    Top executives of MTN present at the briefing, including Corporate Relations Executive, Tobechukwu Okigbo and Chief Financial Officer, Kunle Awobodu,  took turns to offer explanations on the impending listing.

    “When the tax matter has been settled, “the board can assign a value to the company and we will do an IPO,”  Okigbo said, pointing out that “it is difficult to put a value on it when there is such an issue.

    ”There was a lot of work that we did on the listing and our target was to list in 2018. We are a private company at the moment and we need to change to a public company before we can list,” Okigbo said, adding, “we need to send our directors for training to comply with SEC and NSE requirements to be able to list and a lot of work went on at the backend on the listing. Then, the CBN issue happened. The truth be told, if we had listed while the CBN issue was on, we would have been negligent.

    “That is because we would have gone to offer our shares to the public when we had an issue at hand with the CBN that was substantial. If I remind you, they were talking about $8 billion. So, I can’t go and list and offer my shares to the public if I have this thing hanging over my neck. We thank God we were able to resolve this on 24th of December.

    “So, we are working towards the listing and we plan to do the listing before the end of first half 2019, or probably before the end of quarter three. There is a clear drive in doing the listing. It is something we have always wanted to do,” Okigbo stated.

    Nigeria’s Attorney General, Abubakar Malami, had accused MTN of not paying all its taxes in September, and the two sides have yet to reach an agreement. A court hearing on the matter is scheduled  for March 26 in Lagos.

    The parent company has said it would list its local unit on the Nigerian Stock Exchange by June this year. “We anticipate it in two phases, listing by introduction and IPO eventually,” once the tax issue is cleared, Awobodu said, with Moolman affirming that the listing by introduction could take place in April or May.

    Notwithstanding the lingering tax and IPO issues, MTN has received an approval in principle to start mobile-payment services in Nigeria, the biggest of its 20 markets around Africa and the Middle East. Financial services is a key growth market for the carrier due to a scarcity of banks in many parts of the continent and rising take of smart phones and data services.

    Also, MTN will start selling a new smart phone in Nigeria, costing about N8,000  which the company, Moolman, said, is  seen as a way of increasing data revenue, MTN shares rose 1.4 percent to 96.18 rand at the close in Johannesburg, the fifth consecutive day of gains since it announced a 15-billion rand ($1 billion) disposal plan last week. That included online retailer Jumia Technologies AG, in which MTN is the biggest shareholder, which announced IPO plans in New York on Tuesday.