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Safaricom Displaces MTN as Africa’s Largest Carrier
- Safaricom Displaces MTN as Africa’s Largest Carrier
The recent regulatory crisis in Nigeria has plunged, once Africa’s largest wireless carrier, MTN Group Ltd.’s shares below Safaricom.
According to Morgan Stanley, MTN Nigeria is facing $10.1 billion in claims, meaning zero valuation is being placed on the Nigerian business of MTN Group Ltd.
The drop in market value has seen Nairobi-based Safaricom Plc displaced Johannesburg-based MTN even if it has less than a 10th of MTN’s 223 million customers and operates in Kenya.
Last month, the Central Bank of Nigeria said MTN Nigeria illegally repatriated $8.1 billion from Nigeria using four banks and directed the telecommunication giant to refund the amount.
The following week, the office of attorney general accused MTN Nigeria of owing over $2 billion in back taxes.
Since then, shares of MTN Group Ltd. have been dropping and currently trading at 7,047 Zac, down from 10,966 Zac it traded on 28th, August.