MTN faults move for compulsory listing of firms

THE ongoing clamour to list major companies in the telecommunications, power, oil and gas sectors of the economy through legislation was yesterday, opposed by MTN Nigeria.

The company also emphasised need for greater depth of the Nigerian capital market.

MTN Nigeria’s corporate services executive, Akinwale Goodluck said: “What I’m strongly against is mandatory listing. I think the market in Nigeria should be for willing buyers and sellers. It should not be by compulsion.

“If you look at the history of MTN since we started business in 2001, increasingly, we have looked at ways to increase local participation.

“In 2008, a significant part of our shareholding was sold to Nigerian investors. Today, that stock of shares is ‘tradable’. Perhaps, not on an exchange but its ‘tradable’ over the counter. It is quite a robust market. I think listing is one of several ways to expand ownership. The shareholders will be looking at all the options”.

Asked to comment on when the company will likely to approach the market for listing, Goodluck, who was a guest on Channels Television business programme said: “I wish I can answer that question. It will be best determined by shareholders. This matter has been on the front burner for a while and I think its receiving the attention of the people that need to consider it”.

He explained that the company will always support anything that encourages greater local participation and capacity building.

Nigeria is MTN’s largest operation with 41 million subscribers – almost double that of its South African entity. It is also the single largest GSM company in Nigeria.

The Chairman, House Committee on Capital Market and Institutions, Herman Hembe, disclosed recently that a law, which would encourage major companies in the telecommunications, power, oil and gas sectors of the economy to list on the Exchange would be ready this year.

He said: “Parliament needs to lead the fray and is doing so to ensure that national economic growth is engendered via capital market. We are in the process of looking at the bill, having useful engagements within parliament and with other stakeholders.”

He pointed out that contrary to apprehension that the bill would make it compulsory for the telecommunications and upstream oil firms to list their shares on the Exchange, the committee is working towards a law that would encourage those firms to list and enjoy so many benefits.

“To engender a willingness to participate, we should provide a legislation that covers incentives, unbundling of stringent eligibility requirements that create high barriers for potential entrants and hinder participation by willingness to business and the adoption of options that promote foreign investment in our economy under terms that support our national interest without exposing the market to the dangers of the past,” he added.

One Comment

1. 

   Anonymous

   March 9, 2012 at 6:18 pm

   Very good news. i think that this economic politic will increase the capital market of Nigeria.