11 Apr

Daily Watch – MTN strikes mobile money deal with Ecobank, DMO lists sukuk on NSE

  • MTN aims to list its Nigerian unit in an initial public offering this year and has struck an agreement with pan-African lender Ecobank to offer mobile banking across Africa. CEO, Rob Shuter, said plans for the IPO were well advanced and the company would provide exact terms in the next few months. He spoke in Lagos after MTN signed an agreement with Ecobank to form a partnership on mobile banking across Africa. “We are well advanced with the Nigerian listing. If market conditions are appropriate we should conclude it this year,” Shuter told Reuters. MTN and Ecobank’s agreement on a mobile banking partnership came on the heels of an announcement by Kenya’s top three telecom companies on Friday to offer cross-network money transfers by mobile phone.
  • The preferred bidder for 9mobile, Teleology Holdings, has paid the sum of $50 million, being the non-fundable 10 per cent of the bid price required to keep its interest alive in taking over Nigeria’s fourth largest mobile operator. Vice Chairman, Nigerian Communications Commission, Prof. Umar Danbatta, also said that Teleology had less than 90 days to pay the balance of $450 million. Failure by Teleology to pay the remaining $450 million on schedule will lead to it losing the spot to the reserve bidder, Smile Communications.
  • The NNPC has said that it made a trading profit of ₦250 billion in 2016. Group Executive Director, Finance and Account, Isiaka Abdulrazak, said this in a quarterly publication of the NNPC. According to Abdulrazak, his office inherited 65 unaudited financial statements between 2011 and 2014. He said that though there were challenges that led to the backlog, a Project Steering Committee chaired by him was constituted to meet with auditors and all relevant stakeholders to identify and isolate key challenges and give them priority attention. Giving an insight into how he was able to clear the corporation’s unaudited accounts from 2011 to 2016, Abdulrazak said this figure was up from a deficit of ₦123 billion in 2015.
  • The Debt Management Office has listed the ₦100 billion sovereign sukuk bonds, simultaneously on the Nigerian Stock Exchange and the FMDQ Securities Exchange. The bond, offered for subscription to the public last year, has a tenor of seven years and is priced at 16.4 percent. The Director General, DMO, Patience Oniha, said that the sukuk issuance was DMO’s way of contributing to the FG’s objective of infrastructure development. Consequently, she said that the proceeds would be used to fund 25 critical road projects within the country.