NCC says Telcos’ listing in 2019 boosted capital market operations

Wed, Jan 1, 2020
By publisher
4 MIN READ

Business

ONE of the remarkable developments witnessed in the country’s economy in 2019 was listing of telecoms companies on the Nigeria Stock Exchange, NSE. The Nigerian Communications Commission, NCC, said the listing was one of the positive results of a ‘no-nonsense’ outstanding and effective regulatory effort of the commission. The listing of MTN has served as tonic to other telcos to follow in the same direction such as the listing of Airtel.  The commission essentially facilitated the landmark listing of the country’s largest telecommunications operator on the NSE in line with its regulatory activities as enshrined in the Nigerian Communications Act (2003) and other subsidiary regulations.

According to the NCC, the listing was 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 services, QoS, to the consumers. Through this smart regulation and intervention by the NCC, leading to the listing of MTN on the NSE, the commission has opened another chapter in the history of telecommunication industry by empowering Nigerians to control, own and manage one of dominant telecommunications companies in the country by owning shares in MTN Nigeria.

Prof., Umar Danbatta, executive vice chairman, NCC, said at a forum: “The MTN 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. Also, 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.

“It is instructive to state here that one of the greatest advantages of the MTN listing, facilitated by the NCC, is the implication it has on opening up the telecommunications industry for greater investment profile it gives Nigerians the opportunities to invest in publicly-quoted companies like MTN, which is the leader in the telecommunications industry in the country and easily one of the continental leaders.

“In addition to benefits to the consumers, we all know that telecoms is a capital-intensive industry and of late, we found out that the inflow of Foreign Direct Investment (FDI) into the sector has not been as much as it used to be and there is so much for the telcos to still do in terms of expansion and this expansion requires capital. Industry issue bordering on poor quality of service is being partly traced to lack of sufficient infrastructure covering the entire country.

“One of the benefits of MTN listing and those of other operators to follow, therefore, is that the telcos would be able to raise capital for expansion which, in turn, will bring about an improvement in the quality of service and quality of experience for the consumers of telecoms services, which is also a cardinal function of the Commission.”

Undoubtedly, despite the high volatility seen in the Nigerian capital market for the year 2019, the listing of the biggest telecommunication companies, MTN Nigeria and Airtel Africa has helped in making the market capitalisation bullish. Today, capital market regulator and shareholders bodies have commended the effort of the NCC in making the capital market thick through facilitating the listing of MTN, which was fallout of the conditions the telecom regulator gave MTN, following the telco’s violation of SIM registration rule in the telecommunication sector.

Already, capital market stakeholders have said MTN Nigeria and Airtel Africa listing on the NSE have boosted investors’ confidence and liquidity, even as the nation’s economy stands to benefit. Based on this feat, capital market stakeholders, who have seen the fillip in the market operations brought about by telecoms listing, are now calling for laws that would compel multinationals, oil and gas companies, telecommunication firms and privatised companies to list on the NSE to deepen the market.

– Jan. 1, 2020 @ 12:25 GMT |

Tags: