MTN Nigeria plans to sell 14% shares to local retail investors

MTN Nigeria, one of the leading telecom players in the country, is set to make a groundbreaking move by selling 14% of its shares to Nigerian retail investors in the short to medium term. This announcement comes as the global credit ratings have upgraded MTN Nigeria's national scale long-term issuer rating to triple A. The CEO of MTN Nigeria, Carl Toriola, expressed his pride in the ratings upgrade, citing it as a testament to the quality of management, earnings, cash flow, competitive position, and governance structure within the organization. The successful completion of Series 1 of a secured bond with a triple A rating and a stable outlook further solidifies MTN Nigeria's position in the market. During a recent visit to Nigeria by senior executives from MTN's headquarters in South Africa, plans for expansion and service coverage were discussed. MTN Nigeria has earmarked 640 billion Naira for infrastructure expansion over the next three years, with a focus on broadband penetration and rural coverage. The company aims to connect approximately a thousand rural locations this year and accelerate its efforts in 2022 and beyond. In line with its commitment to the Nigerian market, MTN Group plans to sell down a portion of its stake in MTN Nigeria to retail investors, with a target of 2 million investors. The company envisions becoming the most widely held company on the local stock exchange and is optimistic about the excitement surrounding this opportunity. By inviting retail investors to participate in the value creation of MTN Nigeria, the company aims to deepen its ties with the local community and foster inclusive growth. Addressing the evolving landscape of payment service banks (PSB) in Nigeria, MTN is actively engaged with the central bank to explore opportunities for accelerating financial inclusion. With a focus on mobile money services, MTN sees the PSB license as a gateway to expanding the deposit money ecosystem and reaching underserved segments of the population. By leveraging its experience in other African markets, MTN is committed to driving financial inclusion in Nigeria and aligning with the national agenda set by the Central Bank. The strategic decisions made by MTN Nigeria under the leadership of Carl Toriola reflect a bold vision for the company's future in the Nigerian telecom industry. By embracing retail investors, expanding its infrastructure, and focusing on financial inclusion, MTN Nigeria is poised to solidify its position as a market leader and drive inclusive growth in the country.