Telecommunications giant, MTN Nigeria says its subscribers have hit 60.3 million in Nigeria.

The company also said its service revenue increased by 13.4 per cent in the 2019 first quarter, according to results released on Thursday.

Giving remarks on this, Ferdi Moolman, CEO of MTN Nigeria, said, “Our first quarter performance was in line with expectations as service revenue remained resilient with double digit growth on the back of improvements in voice and data revenues.

“We connected a further 2.1 million people to our network, providing them access to worldwide communication services, while additional 1.7 million people are able to access the possibilities that the internet provides.

He further said the Q1 2019 saw “a significant increase in our capital expenditure programme, with focus on LTE services, where we rolled out 1,188 sites across our key focus cities.

In addition, the successful transfer of the 800MHz spectrum from Visafone to MTN Nigeria will further enable improvements to network coverage and service quality.

“We have made significant progress to list on the Nigerian Stock Exchange (NSE) following the conversion of MTN Nigeria to a public company and the successful registration of our ordinary shares with the Securities and Exchange Commission (SEC).

“We are now engaging with the NSE to complete the listing process.”

He mentioned that the business was on a sustainable growth path with service revenue increasing by 13.4 per cent Year-on-Year (YoY) in line with the company’s medium-term guidance of double-digit growth.

According to him, this was led by a 32.4 per cent increase in data revenue and a 12.7 per cent increase in voice revenue, a general slowdown in economic activities during the elections period and impacted voice revenue growth.

Telecommunications giant, MTN on Tuesday completed listing on the Nigerian Stock Exchange (NSE) with a registration of 20,354,513,050 ordinary shares of N0.02 each with the Securities and Exchange Commission (SEC).

The Chief Executive Officer of the company, Ferdi Moolman who spoke after the successful completion said the process sets in motion the next steps in the company’s intended listing by introduction on the Nigerian Stock Exchange (NSE). 

He added, “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.”

In a bid to fulfil requirements to be listed on the Nigerian Stock Exchange, MTN Nigeria has changed its status from a private company to a public liability company (PLC).

MTN had previously announced that it looks to list on the NSE before July, saying it plans to enter the market by way of listing by introduction.

The telecoms company in a statement on Wednesday said the listing is part of its commitment to localization in the markets in which it operates, adding that it would create a new telecoms asset class for investors and provide a wider group of Nigerians with a chance to participate in the MTN investment opportunity.

Speaking on the announcement, the MTN Chief Executive Officer, Ferdi Moolman, commented, “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 SEC and NSE to take forward the listing process.”

A listing on the NSE was one of the conditions reached in the resolution of a N330 billion fine placed on the telco by the Nigerian Communications Commission (NCC) for its inability to disconnect improperly registered SIM cards.

For the year ended 2018, the company had announced the addition of 6 million new subscribers and a revenue of N965 billion.

The results, which were announced in March 2019, showed that data revenue grew by 39.3% while internet subscribers grew to 18.7 million.

MTN Reveals Plan To Get Listed On NSE
The MTN group has disclosed that it will be listed on the Nigerian Stock Exchange (NSE) before the first half of 2019 is over.
 
The telecommunication giant said this in a mailed statement which shows very positive trade numbers in 2018 fiscal year.
 
The results showed a total revenue of 37,971,000,000 South African rand (N965.3bn), the news reports.
 
“MTN plans to list by introduction on The Nigerian Stock Exchange during the first half of 2019 and is looking to simplify the capital structure ahead of this listing,” MTN said.
 
“The Company’s listing on the Exchange will create a new telecoms asset class for investors and provide an opportunity for a wider group of Nigerians to participate in our investment story.”
 
“This will be achieved via a listing by introduction and will be followed by a public offer once market conditions are conducive. Over time, and subject to market conditions, we anticipate that the participation of Nigerians in the ownership of the business will increase from around 20% to 35%.”
 
MTN has been able to bring its tally to 58 million subscribers nationwide after successfully increasing its mobile subscriber base in Nigeria by another six million people.
 
Ferdi Moolman CEO, MTN Nigeria said: “In 2018 we rebuilt the base; adding another six million Nigerians to our network, giving a total of 58 million people access to worldwide communication services”.
 
“This growth was built on our sustained focus on customer-centric delivery – ensuring that customers get much more value for their money.
 
“This included the deployment of proactive interventions to improve customer experience, together with the enhancement of network quality and coverage, and the optimization of our services portfolio.
 
“We also enabled an additional 8 million people to access the possibilities that the internet provides, bringing our total data subscriber base to 44 million, of which 18.7 million use more than five megabytes per month.
 
“We are now even better positioned to ensure that everyone can access the benefits of a modern connected life. We are excited to have been given the privilege to continue playing a role in facilitating this, and are grateful to our customers, our people, our partners and our regulator for making this possible.
 
“We understand how access to the opportunities enabled by the internet can open up new industries even in the remotest areas of our country.
 
“Thus, we will continue to focus on delivering social innovations like mobile electricity, financial services for all; and leveraging our technology as a vehicle to enable high-impact mobile solutions in education, health and agriculture in our communities – urban and rural.”
 
Banks and Telecommunications operators in Nigeria, Tuesday, traded blames over the rising cases of financial frauds perpetrated in the country through telecommunications networks.
 
The financial services providers and telecommunications companies tackled each other on who to bear the blame on financial frauds committed on bank customers’ accounts using telecommunications network at a stakeholder meeting on financial fraud using telecoms platform convened by the Nigerian Communications Commission (NCC).
 
There were also heated arguments on whether victims of such financial frauds should be classified as bank customers or that of the telecommunications companies.
 
Another subject of heated argument was who should bear the responsibility for the building of technology infrastructure that would help to detect when a wrong subscriber that had swapped a SIM initiated a financial transaction through the networks.
 
While telecommunications operators alleged that banks wanted the technology solution to be given to them free, the banks contended that their services provided a flow of income to telecommunications operators.
 
The Central Bank of Nigeria (CBN) and the Consumer Protection Council (CPC) however intervened to establish that the subscribers were bank customers even when they used technology platforms to carry out transactions.
 
The Executive Vice Chairman, Nigerian Communications Commission, Prof. Umar Danbatta, in his address to the forum, said the commission was collaborating with the CBN, the Nigeria police and other relevant agencies in the fight against e-banking fraudsters.
 
He said: “This important forum is taking place at a time when the level of financial fraud has reached N12.5bn. So, something needs to be done urgently to secure the confidence of Nigerians in the financial system as well as a communications system in the country.
 
“Despite advances in software technology, human intervention is still required to prevent SIM swap fraud, which is quite difficult to detect. Also, controls and processes by network operators have to a degree failed and led to instances of human error in retail branches in distributing SIM cards.”
 
Also speaking at the event, the Minister of Communications, Mr Adebayo Shittu, noted that the incidence of financial fraud using telecoms platforms had been pervasive.
 
Shittu said: “We believe innovation needs to be meaningful to ensure that nations and societies everywhere benefit from technological advancement. Technology disruption has been infused in every facet of the Nigerian economy.
 
“The impact of online fraud cannot be underestimated or denied. Indeed, it leads to the loss of reputation and income and it is tied to direct financial loss of billions of naira in the financial sector, e-commerce and telecommunications.
 
“The frequency of identity theft is alarming and this is why the government is putting its full might behind efforts to confront this menace and to put an end to it.”
 
 
Source: Business Insider
The Federal High Court Sitting in Lagos has entered as judgement the settlement terms in a suit filed by MTN Nigeria Communications Limited against the Federal Government.
 
MTN had challenged the $8,134,312,397.63 demanded from it by the Central Bank of Nigeria (CBN) over alleged forex remittance infractions.
 
In the suit, the telecoms firm asked the court to restrain the CBN and the Attorney-General of the Federation (AGF) from imposing punitive sanctions on it.
 
On the other hand, the apex bank had accused MTN Nigeria of improper dividend repatriations and demanded that $8.1 billion be returned “to the coffers of the CBN”.
 
When the case came up in court on Thursday, MTN’s lead counsel, Wole Olanipekun, informed Justice Saliu Saidu that parties have resolved the dispute amicably.
 
He said the terms of the settlement were filed in on December 28, 2018.
 
CBN’s counsel, Mr Henry Ejiofor, also confirmed to the judge that both parties have settled out of court.
 
He, thereafter, urged the court to enter the terms of settlement as judgment.
 
In his ruling, Justice Saidu thanked the parties for not wasting precious judicial time by going through the rigours of a trial.
 
He adopted the terms of settlement as the judgment of the court and struck out the AGF’s name from the suit.
 
The terms of the settlement were not read in open court and this reporter was unable to get a copy of the document as at the time of this report.
 
However, we will keep you updated as soon as we get the details.
 
The Federal Government had accused MTN of unpaid taxes on foreign payments and imports, asking it to pay approximately $2billion in relation to the taxes.
 
According to the CBN, MTN and four banks deliberately flouted the “laws and regulations … including the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1995 and the Foreign Exchange Manual, 2006.”
 
The banks allegedly colluded with MTN, using irregular Certificates of Capital Importation (CCI) to illegally remit foreign exchange abroad.
 
The four banks were slammed with a combined N5.87 billion fine.
 
 
 
Source: PmNews
 
MTN had denied the allegations and subsequently filed the suit to challenge it.
MTN Nigeria Communications Limited, and the Central Bank of Nigeria (CBN) have settled their differences over the $8.1 billion demanded by the apex bank, out of court.
 
The telecommunications company disclosed this on Thursday at the resumed sitting of the court in the suit it filed against the CBN.
 
The CBN had demanded that MTN pay the amount following alleged infractions in forex remittances.
 
MTN, through its lawyer, Chief Wole Olanipekun (SAN), had approached the Federal High Court, Lagos, challenging the powers of the CBN and the Attorney General of the Federation to make the monetary demand from it and prayed the court to restrain them from coming after it.
 
The parties to the suit however on December 4, 2018, asked the court for time so that they could settle out of court.
 
Olanipekun, on Thursday informed the court that they have reached an agreement with the CBN. He also presented a document to the court, and said his client had finally reached an agreement with the CBN.
 
He prayed the court to adopt the document as the judgement of the court.
 
Mr Henry Ejiofor, who stood in for CBN’s lead counsel, Mr Seyi Sowemimo (SAN), confirmed the position, while the counsel for the AGF, Olanike Idenu, did not oppose the application by MTN and CBN but urged the court to strike out the name of the AGF from the suit.
 
In his judgement, Justice Saidu thanked the parties for saving the precious time of the court and sparing it the rigours of litigation and consequently struck out the name of the AGF from the suit and adopted the terms agreed upon by the parties as the judgment in the suit.
 
The terms of the agreement and out of court settlement have not been made public.
 
 
Source: The Cable

The Central Bank of Nigeria has announced the resolution of its dispute with MTN Communications Limited, saying the company will now atone only for the illegal remittances on preference shares issued in 2008.

CBN’s spokesman and director of corporate communications announced the breakthrough in a statement published on the bank’s website on Monday.

The MTN also corroborated the truce in a statement simultaneously issued by MTN in Johannesburg.

According to the terms of settlement, the CBN instructed MTN Nigeria to implement a notional reversal of the 2008 private placement of shares in MTN Nigeria at a net cost of circa N19.2 billion – equivalent to US$52.6m (the notional reversal amount).

“This is on the basis that certain certificates of capital importation (CCIs) utilised in the private placement were not properly issued.

“MTN Nigeria and the CBN have agreed that they will resolve the matter on the basis that MTN Nigeria will pay the notional reversal amount without admission of liability”, MTN said.

“In terms of the resolution agreement, the CBN will regularise all the CCIs issued on the investment by shareholders of MTN Nigeria of circa $402,625,419 without regard to any historical disputes relating to those CCIs, thereby bringing to a final resolution all incidental disputes arising from this matter.

The CBN said four months ago that MTN should return to Nigerian coffers $8.1 billion repatriated between 2007 and 2015, because of capital importation certificate irregularities.

Four banks involved in the repatriation, Standard Bank, Stanbic IBTC Nigeria, Citibank Nigeria and Diamond Bank Plc, were fined by the CBN.

Standard Chartered Bank was fined N2.47 billion, Stanbic IBTC, N1.88 billion, Citibank Nigeria, N1.26 billion and Diamond bank, N250 million.

Here is the statement by CBN:

The Central Bank of Nigeria (CBN) in August 2018 directed MTN Communications Limited (MTNN) to reverse repatriations valued at $8.1 billion done on its behalf by four commercial banks between 2007 and 2015 on the basis of Certificates of Capital Importation (CCIs)
irregularly issued to MTNN.

Following the keen interest shown by various stakeholders sequel to the regulatory action, the CBN committed to engage further with MTNN with a view to achieving an equitable resolution.

Consequent upon the above, MTNN, led by its Nigerian shareholders, held intensive engagements with the CBN in the course of which it supplied additional material information, not previously offered to the Bank, satisfactorily clarifying its remittances. Having now reviewed
the additional documentation provided by the company, the CBN has concluded that MTNN is no longer required to reverse the historical dividend payments made to MTN Nigeria shareholders.

However, the CBN identified that the proceeds from the preference shares in MTNN’s private placement remittances of 2008 were irregular having been based on CCIs that were issued without the final approval of CBN.

The CBN and MTNN have mutually agreed that the aforementioned transaction be reversed notionally to bring it into full compliance with foreign exchange laws and regulations.

The parties have resolved that execution of the terms of the agreement will lead to amicable disposal of the pending legal suit between the parties and final resolution of the matter.

The CBN assures foreign investors that the integrity of the CCIs issued by authorised dealers remain sacrosanct. Potential investors are encouraged to take advantage of the enormous investment opportunities that abound within Nigeria.

The telecommunications giant still has another issue to resolve: the court suit over the demand by the attorney general for back taxes.

MTN assured its shareholders that it is also moving towards resolution of this problem.

“Shareholders are advised that the legal process initiated by MTN Nigeria for injunctive relief restraining the AGF from taking further action in respect of its orders for back taxes is continuing.

“The AGF matter came up for initial mention before the Federal High Court of Nigeria Lagos Judicial Division on 8 November 2018 and has been adjourned to 7 February 2019. MTN Nigeria continues to maintain that its tax matters are up to date and no additional payment, as claimed by the AGF, is due, and consequently no provisions or contingent liabilities are being raised in the accounts of MTN Nigeria for the AGF back taxes claim”, the company said.

The attorney-General of the Federation (AGF) is demanding from the company the payment of N242 billion and 1.3 billion dollars, for import duties and withholding tax.


Source: PmNews

* Pays $53 million to settle dispute

* Nigeria is MTN biggest, most lucrative market

* MTN says its tax affairs in Nigeria are up to date (Adds MTN statement, details)

South African telecoms operator MTN Group has agreed to make a $53 million payment to resolve a dispute in Nigeria, it said on Monday, ending a four-month multi-billion dollar dividend repatriation row that has hammered its share price.

Nigeria is MTN's biggest market, accounting for a third of the African telecoms heavyweight's annual core profit, but it has proven problematic for the company in recent years.

The Central Bank of Nigeria (CBN) had ordered MTN and its lenders to bring back a total of $8.1 billion it alleged the company had illegally repatriated using improperly issued paperwork between 2007 and 2008.

"The CBN upon review of the additional documentation concluded that MTN Nigeria is no longer required to reverse the historical dividend payments made to MTN Nigeria shareholders," MTN said in a statement.

However, the central bank has found that a 2008 private placement remittance worth around $1 billion was based on certificates that did not have final approval.

As such, MTN said it had been instructed by CBN to implement "a notional" reversal of that transaction by making a $52.6 million payment.

"MTN Nigeria and the CBN have agreed that they will resolve the matter on the basis that MTN Nigeria will pay the notional reversal amount without admission of liability," MTN said in a statement.

The CBN confirmed the outline of the agreement with MTN, without mentioning the $53 million payment. The agreement would lead to an "amicable disposal of the pending legal suit between the parties and final resolution of the matter," it said in a statement.

MTN and the CBN had filed a claim and counter-claim in a Nigerian court over the dispute. The legal case has been adjourned several times as lawyers said talks were under way on a settlement.

TAX BILL

The settlement comes around two years after MTN agreed to pay a more than $1 billion fine for missing the deadline to cut off unregistered SIM cards.

Shares in MTN have fallen by around 20 percent since the end of August when the CBN asked the company to return the money.

The stock, which closed 2 percent higher on Monday, is also under pressure from a separate dispute with the attorney general of Nigeria (AGF), who has slapped the company with a $2 billion tax bill.

MTN has gone to court seeking to block the attorney general from taking further action regarding the order for back taxes. The matter was adjourned last month until next February.

"MTN Nigeria continues to maintain that its tax matters are up to date and no additional payment, as claimed by the AGF, is due, and consequently no provisions or contingent liabilities are being raised in the accounts of MTN Nigeria for the AGF back taxes claim," the company said.

 

- Reuters

Telecommunication firm, MTN Nigeria Communications Limited, on Tuesday, asked the Federal High Court in Lagos for a further adjournment in the suit it filed to challenge the $8,134,312,397.63 being demanded from it by the Central Bank of Nigeria.
 
CBN had asked MTN to pay the sum of The $8.1bn for alleged forex remittances infraction.
 
When the case came up on Tuesday, MTN’s lead counsel, Chief Wole Olanipekun, SAN, informed the court that his client had approached the CBN for possible amicable resolution of the dispute.
 
Olanipekun, prayed Justice Saliu Saidu to further adjourn the suit to enable parties to fully explore out-of-court resolution and deliberate on the terms of the settlement.
 
Read also: Nigerian govt declares Discos as failures, five years after privatisation
 
Seyi Sowemimo, SAN, the lead counsel for CBN, confirmed Olanipekun’s position, adding that discussions for possible out-of-court settlement were in the advanced stage.
 
Justice Saidu adjourned till December 12, 2018, for a report of the settlement between the parties.
 
It would be recalled that MTN had filed the suit, marked FHC/L/CS/1475/2018, in November, urging the court to declare that the CBN acted ultra vires of its statutory powers when it wrote an August 28, 2018 letter to it demanding a refund of $8.1bn.
 
The firm urged the court to hold that the CBN’s $8.1bn demand was “illegal, oppressive, abusive, unauthorised and unconstitutional.”
 
 
Source: The Ripples
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