By Emma Okonji
The regulatory action taken by the Nigerian Communications Commission (NCC) to facilitate the listing of MTN Nigeria on the country’s stock exchange market 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 (EVC) of the Commission, Prof. Umar Garba Danbatta, has said.
Market analysts report that MTN investors have raked in approximately N1 trillion in price appreciation and dividend since April 2020.
Danbatta in a statement, signed by the Director of Public Affairs at NCC, Dr.
Ikechukwu Adinde, said 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, 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.
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 to consumers,” Danbatta said.
According to him, through this proactive regulation and timely intervention by the NCC, which lead to the listing of MTN on the NSE, a new vista of opportunity has 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 NCC boss stated.
Danbatta also stated that the listing 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, Danbatta said.
Explaining that telecoms is a capital-intensive industry that requires continuous investment, Danbatta said the listing would enable the telecoms companies to 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.