South Africa’s MTN Nigeria listed in Nigerian Stock Exchange (NSE) yesterday. With a market value of US$ 6.4 billion, the stock has become the exchange’s second-largest scrip by market value. On the opening day, the market value of the MTN Nigeria’s shares climbed by 10 percent from their listing price of 90 naira. The telecom space in Nigeria is little over 9 percent of GDP. MTN being the largest and the market leader in Nigeria, the listing is watched with keen interest by the market players. The listing comes close on the heels of the row the MTN had with Nigerian authorities about tax payments and controversies on SIM cards. Not that MTN is out of the hook of the tax authorities in Nigeria: it is still in the middle of a US$ 2 billion tax row with the country’s attorney general. It is widely reported that MTN agreed to this listing as part of a settlement of long-running disputes with the Nigerian government. With this particular listing, local investors and international investors, will have the opportunity to invest in Nigeria. Significantly, MTN Group owns 78.8% of the Nigerian business. The South African telecom company is the largest investor in the telecom sector in Africa and is working out strategies for expanding its footprint in Africa. MTN is also making good profits from the Africa operations; close to a third of MTN’s group profit. With the competition pitching up, there is a likelihood of its profit getting shrunk. There are over 52 million subscribers on the network in Nigeria and it is expected to improve in the coming years.
