The regulatory action taken by the Nigerian Communications Commission (NCC) to facilitate the listing of MTN Nigeria on the country’s stock exchange market is yielding impressive results for the investing community.
According to Umar Danbatta, the executive vice chairman of the commission, the listing of the telco has continued to bring economic gains to Nigeria and Nigerians in terms of boosting market capitalisation and yielding dividends to shareholders.
This was in response to a report by market analysts that MTN investors have recouped approximately N1 trillion in price appreciation and dividends between April and August, 2020.
Recall that the listing of MTN was as a result of NCC’s 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).
“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,” the NCC said with satisfaction in a press statement signed by Ikechukwu Adinde, its director of public affairs.
The Commission, 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 Danbatta.
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 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 is a capital-intensive industry that requires continuous investment, Danbatta said the listing will 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,” 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 will 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.
