Connect with us

Finance

NCC Audits Telecom Firms’ Financial Status

Published

on

telecommunication-tower

The Nigerian Communications Commission has commenced a financial health check on major telecommunications operators in the country.

The commission’s Executive Commissioner, Mr. Sunday Dare, stated this on Tuesday during a corporate governance executive workshop organised by the regulator in Lagos.

He said that the NCC embarked on the exercise to find out the credit and debt profile of all telecoms companies in the country to avert future financial crisis that could lead to the closure or takeover of any telco.

“We have a strong team of financial experts and auditors who are looking into the books of critical operators. In a month or two, the NCC will know the financial health of these operators,” Dare said.

He said, “The whole idea of the financial health is to ensure that the NCC does not get into tight corners again with any financial institution. “The NCC executive commissioner berated the operators for poor services, saying the health check exercise would include checks on drop calls and unsolicited messages.

“We know the services they provide are wishy-washy, yet they are making money. We know they have drop calls, but we want to know the amount of drop calls and see how the trend can be reversed.

“We want to know the cities with the highest number of drop calls and ascertain why such has continued, and then seek ways to urgently redress the factors necessitating such unpleasant services,” Dare said.

He added that findings and details from the exercise would be published on the commission’s website, just as was the case with the Consumer Satisfaction Survey.

Speaking in the same vein, the Chairman, Governing Board, NCC, Senator Olabiyi Durojaiye, said that the regulator would be more emphatic on healthy competition, “improved quality of service and commensurate revenue to the Nigerian government, thus making it a ‘win-win’ situation for the telecoms operators, the government and the Nigerian people.”

He added, “As for the investors in the communications sector, one cannot, in good conscience, deny them of reasonable returns on their huge investments.

“We, the regulators of the system must ensure fair and level playing field. But no one, I repeat, no one should be kept in doubt that Nigerians deserve and will prefer healthy competition and good service at affordable cost to the people as opposed to huge and quick returns to a few.”

The Executive Vice Chairman, NCC, Prof. Umar Danbatta, said that the corporate governance executive workshop was to promote fair competition and ensure inclusive growth among the telecom companies.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Continue Reading
Advertisement
Comments

Banking Sector

Peter Obaseki Retires as Chief Operating Officer of FCMB Group Plc

Published

on

FCMB

The Board of Directors of FCMB Group Plc has announced the retirement of Mr. Peter Obaseki, the Chief Operating Officer of the financial institution, with effect from March 1, 2021. He was also an Executive Director of the Group.

His retirement was approved at a meeting of the Board of the Group on February 26, 2021. This has also been announced in a statement to the Nigerian Stock Exchange (NSE) by the financial institution.

The Chairman of FCMB Group Plc’s Board of Directors, Mr Oladipupo Jadesimi, thanked Mr. Obaseki for his valuable service and excellent support to the Board for many years.

FCMB Group Plc is a holding company divided along three business Groups; Commercial and Retail Banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited); Investment Banking (FCMB Capital Markets Limited and CSL Stockbrokers Limited); as well as Asset & Wealth Management (FCMB Pensions Limited, FCMB Asset Management Limited and FCMB Trustees Limited).

The Group and its subsidiaries are leaders in their respective segments with strong fundamentals.

For more information about FCMB Group Plc, please visit www.fcmbgroup.com.

Continue Reading

Banking Sector

COVID-19: CBN Extends Loan Repayment by Another One Year

Published

on

cbn

Central Bank Extends One-Year Moratorium by 12 Months

The Central Bank of Nigeria (CBN) has extended the repayment of its discounted interest rate on intervention facility by another one-year following the expiration of the first 12 months moratorium approved on March 1, 2020.

The apex bank stated in a circular titled ‘Re: Regulatory forbearance for the restructuring of credit facilities of other financial institutions impacted by COVID-19’ and released on Wednesday to all financial institutions.

In the circular signed by Kelvin Amugo, the Director, Financial Policy and Regulation Department, CBN, the apex bank said the role-over of the moratorium on the facilities would be considered on a case by case basis.

The circular read, “The Central Bank of Nigeria reduced the interest rates on the CBN intervention facilities from nine per cent to five per cent per annum for one year effective March 1, 2020, as part of measures to mitigate the negative impact of COVID-19 pandemic on the Nigerian economy.

“Credit facilities, availed through participating banks and OFIs, were also granted a one-year moratorium on all principal payments with effect from March 1, 2020.

“Following the expiration of the above timelines, the CBN hereby approves as follows:

“The extension by another 12 months to February 28, 2022 of the discounted interest rate for the CBN intervention facilities.

“The role-over of the moratorium on the above facilities shall be considered on a case by case basis.”

It would be recalled that the apex bank reduced the interest rate on its intervention facility from nine percent to five percent and approved a 12-month moratorium in March 2020 to ease the negative impact of COVID-19 on businesses.

To further deepen economic recovery and stimulate growth, the apex bank has extended the one year-moratorium until February 28, 2022.

Continue Reading

Finance

MTN Nigeria Generates N1.35 Trillion in Revenue in 2020

Published

on

MTN 1

MTN Nigeria Grows Revenue by 15.1 Percent from N1.169 Trillion in 2019 to N1.35 Trillion in 2020

Despite the COVID-19 pandemic and challenging business environment, MTN Nigeria realised N1.346 trillion in revenue in the financial year ended December 31, 2020.

The leading telecommunications giant grew revenue by 15.1 percent from N1.169 trillion posted in the same period of 2019.

Operating profit surprisingly jumped by 8.5 percent from N393.225 billion in 2019 to N426.713 billion in 2020.

This, the telecom giant attributed to the surge in finance costs due to increased borrowings from N413 billion in 2019 to N521 billion in 2020.

MTN Nigeria further stated that the increase in finance costs was the reason for the decline in growth of profit before tax to 2.6 percent.

MTN Nigeria grew profit before tax by 2.6 percent to N298.874 billion, up from N291.277 billion filed in the corresponding period of 2019.

The company posted N205.214 billion profit for the year, a 0.9 percent increase from N203.283 billion recorded in the 2019 financial year.

Share capital remained unchanged at N407 million. While Total equity increased by 22.3 percent from N145.857 billion in 2019 to N178.386 billion in 2020.

MTN Nigeria’s market price per share increased by 61.8 percent from N105 to N169.90.

While market capitalisation as at year-end also expanded by 61.8 percent to N3.458 trillion, up from N2.137 trillion.

The number of shares issued and fully paid as at year-end stood at 20.354 million.

MTN Nigeria margins were affected by Naira devaluations and capital expenditure due to the new 4G network coverage roll-out.

Margins were adversely affected by the effect of naira devaluation and expenses associated with new sites’ roll-out to boost 4G network coverage in FY’20.

“On the former, we note that MTNN expanded the scope of its service agreement with IHS Holding Limited and changed the reference rate for converting USD tower expenses to NAFEX (vs CBN’s official rate previously). Thus, over the full-year period, the company’s operating margin contracted by 1.9 ppts YoY to 31.7%,” CardinalStone stated in its latest report.

Continue Reading

Trending