By Angeline Mgbele, Correspondent Abuja
The regulatory action taken by telecommunications sector referee, the Nigerian Communications Commission (NCC), to facilitate the listing of MTN Nigeria on the country’s stock exchange market(bourse) has continued to bring economic gains to Nigeria and Nigerians in terms of boosting market capitalisation and yielding dividends to shareholders, the Executive Vice Chairman and Chief Executive Officer (EVC/CEO) of the Commission, Prof. Umar Garba Danbatta, has said.
A statement authored by the Director of Public Affairs(DPA) of the NCC, Dr. Ikechukwu Adinde, points to the fact that the listing of MTN was as a result of NCC’s effective regulatory action taken during the mobile network operator’s fine settlement agreement in 2016, which compelled the telco to, among other things, list on the Nigerian Stock Exchange (NSE).
According to the statement, market analysts reported that MTN investors had raked in approximately N1 trillion(US$2.61billion) in price appreciation and dividends since April 2020.
The listing was one of the outcomes of the NCC’s stringent regulatory posture, which served as tonic for other telcos such as Airtel to follow the same direction, stated Adinde.
According to the statement, as the country’s independent telecoms regulatory authority, the NCC, working with the Central Bank of Nigeria (CBN), facilitated the landmark listing of the country’s largest telecommunications operator on the bourse.
“This is in line with its mandate to promote investment, create a level-playing field for all licensees, ensure compliance to existing telecoms laws and facilitate delivery of top-notch quality of service (QoS) to consumers,” said the Executive Vice Chairman of NCC, Prof. Umar Garba Danbatta.
According to Danbatta, through this proactive regulation and timely intervention by the NCC, which led to the listing of MTN on the NSE, a new vista of opportunity had been created in the history of telecommunications industry in Nigeria.
“That important regulatory action enabled Nigerians, consistent with the Nigerian Communications Act (NCA) 2003, to partly, own, manage and control MTN. This bold and courageous regulatory action is now transforming lives and boosting the economy,” the EVC stated.
Danbatta also stated that the listing has helped to translate into action, an important objective of the Commission, which is to promote local investment and ownership in the telecom sector.
“With MTN shares available in the capital market, it is expected that Nigerians will buy shares and by purchasing the shares of MTN, they will be financially empowered and be socially transformed,” he said.
Stating that telecoms was a capital-intensive industry that required continuous investment, Danbatta said the listing would enable the telecoms companies raise capital for the expansion of their networks.
“Also, one of the benefits of listing on the NSE is that telcos have enormous opportunity for raising more capital for network expansion, which will, in turn, bring about improvement in the quality of service delivery and quality of experience for telecom consumers,” he said.
The EVC further stated that, “today, the capital market regulator and shareholder bodies have commended the effort of the NCC in making the capital market more resilient through the Commission’s regulatory action in facilitating telcos listing.”
He noted that the listing in the stock exchange would promote liquidity amongst operators, enhance their value as well as promote transparency.
“The Commission is committed, through its regulatory policies and actions, to creating the right environment to attract both Foreign Direct Investment (FDIs) and local investment into the telecom industry for increased economic prosperity for Nigerians,” the EVC said.
