By Stella Obi
The Nigeria Communications Commission said the listing of MTN has brought economic gains by boosting market capitalisation and yielding dividends to shareholders.
Market analysts also reported that MTN investors have raked in approximately N1 trillion in price appreciation and dividends since April 2020.
NCC Executive Vice Chairman, Prof. Umar Danbatta disclosed these in a statement signed by its Director of Public Affairs, Dr Ikechukwu Adinde in Abuja on Monday.
Dr. Abinde said MTN presence in the market was as a result of conserted efforts from the regulatory body and the Central Bank of Nigeria (CBN).
“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)”, he said.
The statement reads “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 (QoS) to consumers,
“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,
Danbatta also stated that the listing has helped to promote local investment and ownership in the telecom sector which is an important objective of the Commission.
“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.
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.