Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • 2023 Elections
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • 2023 Elections
No Result
View All Result
Nairametrics
No Result
View All Result
Home Business News

The CBN vs MTN logjam could have ripple effects – Analysts

Emmanuel Abara BensonbyEmmanuel Abara Benson
5 years ago
in Business News, Company News
MTN Nigeria Plc

MTN Nigeria

Share on FacebookShare on TwitterShare on Linkedin

As the conversation continues about the CBN order requiring MTN to repatriate $8.1 billion to Nigeria as well as the sanctions imposed on 4 banks, CSL Stockbrokers has shared an opinion- describing the development as yet another regulatory quagmire.

The stockbroking firm made this known in a series of tweets shared on its official Twitter handle, yesterday.

Meanwhile, the firm also made it clear that the N5.9 billion fine by the Central Bank of Nigeria will largely be immaterial; at least for their clients Diamond Bank and Stanbic IBTC. This is because “this amount is not large enough to pose as a threat to their financial stability and/or near-term profitability”, the firm said.

Nigeria | Telecoms
MTN in yet another regulatory quagmire

The impact of the N5.9bn (US$16.4m) regulatory fine imposed by the Central Bank of Nigeria (CBN) will not be material, at least for the banks under our coverage (Stanbic IBTC and Diamond Bank). @Nairametrics @proshare …

— CSL Stockbrokers Ltd (@CSLStockbroking) August 31, 2018

However, CSL noted in the statement that MTN’s latest troubles could still rob off negatively as some banks “some banks have shareholdings in the company.”

In our view, this amount is not large enough to pose as a threat to their financial stability and/or near-term profitability.We however note that most of the banks under our coverage(Access Bank, Diamond Bank, Fidelity Bank, FBN Holdings,FCMB, GTB, StabicIBTC, UBA, and Zenith)…

— CSL Stockbrokers Ltd (@CSLStockbroking) August 31, 2018

https://twitter.com/CSLStockbroking/status/1035469886137487360

Refunding $8.1 billion may not be possible

CLS Stockbrokers opined that it will be impossible for the telco to do that, seeing as “the funds have long been distributed to shareholders and lenders over time, and cannot be practically raised by MTN itself without major disruptions to its business.”

The apex bank may eventually resort to imposing fines on the telco. This will, in turn, ultimately affect the company’s profitability, CSL said.

We believe the regulator may resort to imposing a fine on MTN (which will materially impact profitability), or restrict future repatriation of funds by MTN, with the attendant effect on its foreign lenders and shareholders.

— CSL Stockbrokers Ltd (@CSLStockbroking) August 31, 2018

MTN’s much-anticipated IPO could be affected by this

The statement by CSL Stockbrokers also considered the likelihood of the company’s highly anticipated initial public offering being by this development. After months of speculations and delays, the NCC recently gave the telco May 2019 as the ultimatum to list on the Nigerian bourse.

Of particular concern, the CBN's refund directive given to MTN could potentially impact its Initial Public Offering (IPO) in Nigeria – which was expected to have commenced this month – and heightens the risk of an IPO undersubscription.

— CSL Stockbrokers Ltd (@CSLStockbroking) August 31, 2018

In the meantime, the telecoms giant has continued to take direct heats due to the latest pronouncements by the Central Bank of Nigeria. As we reported, the company’s shares declined sharply by 18% on Thursday morning due to the latest controversy it is embroiled in. It went on to decline as much as 31%; the worse performance in nearly ten years.

Related

Tags: CBNCSL StockbrokersMTN

Leave a Reply Cancel reply

Press one
hfm
Mega Millions
fidelity banner
SME
HFM
Patricia





NM newsletters

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • Oil and gas products dominate Nigeria’s exports for Q4 2022
  • Viable investment strategy amidst rising inflation in Nigeria. – Baige Capital
  • Bank HoldCos are taking business away from Stockbrokers

Follow us on social media:

Recent News

Oil and gas products dominate Nigeria’s exports for Q4 2022

Oil and gas products dominate Nigeria’s exports for Q4 2022

March 28, 2023
Viable investment strategy amidst rising inflation in Nigeria. – Baige Capital

Viable investment strategy amidst rising inflation in Nigeria. – Baige Capital

March 28, 2023
  • Download Nairametrics iOS App
  • Download Nairametrics Android App
  • Home
  • Exclusives
  • Markets
  • Industries
  • Economy
  • Business News
  • Financial Literacy
  • Opinions

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • 2023 Elections

© 2023 Nairametrics

error: Alert: Content selection is disabled!!