Business News
MTN Nigeria CEO reaffirms telco’s commitment to invest N600 billion on core CAPEX
MTN Nigeria Communications Plc is committed to investing whopping sum of N600 billion on its core CAPEX in 2020.
MTN Nigeria Communications Plc is committed to investing a whopping sum of N600 billion on its core CAPEX in 2020. This was disclosed by the Chief Executive Officer, Ferdinand Moolman,m who led a team of other MTN top executives during the telco’s earnings call that happened on Tuesday, March 3rd.
According to Moolman, the money will be invested heavily towards upgrading MTN’s fibre optics infrastructure, in order to facilitate its plan to increase 4G network coverage across more locations in the country.
MTN will also be using part of the earmarked budget to obtain some necessary licenses for some of the value-added services it plans to offer Nigerians starting 2020.
Meanwhile, the company would be making use of the cheapest available funding options to support these projects, Moolman noted. One of such options, he said, is the use of commercial paper.
[READ MORE: MTN Nigeria: Sturdy operating performance buoys growth in Pre-tax Profit)
An overview of MTN’s 2019 financials
Earlier during the earnings call, Ferdinand Moolman expressed how very encouraged he was by the telco’s financial performance in 2019. According to him, the positive performance was due mainly to the foundations that were put in place to facilitate growth.
As Nairametrics earlier reported, MTN Nigeria reported double-digit growth in both its data and call business verticals. In total, the company’s total active subscribers stood at 64.3 million during the period, up by 10.5%, even as active data subscribers increased by 34.9% to 25.2 million.
MTN Nigeria also reported total revenue of N1.2 trillion for FY 2019, indicating a 12.6% rise. It reported EBITDA of N629.9 billion, marking a 45%, and a profit after tax of N202.1 billion (up 39%).
Looking back on the operating and regulatory environment in 2019
Speaking further, Moolman noted that in 2019, MTN finally paid off the fine that was imposed by the Nigerian Communications Commission (NCC) for the 2015 infraction of improperly registering SIM cards. The company also listed on the Nigerian Stock Exchange, thereby fulfilling all the settlement conditions set out by the Nigerian telecom regulator.
He also commented on all the regulatory issues the company has faced, some of which have been completely resolved while others are nearing resolution points. In regards to the regulatory challenges, Moolman stated that he is proud of the MTN team because they do not let all these challenges to distract them from what is important – and that is ensuring growth.
[READ ALSO: MTN Nigeria reacts to poor internet as network issues go beyond Nigeria)
Outlook for 2020
This year, MTN Nigeria is going to focus on building its 4G network, widening its coverage area, and better utilising its super-agent license to accelerate financial inclusion across Nigeria, Moolman disclosed.
He noted that even though a lot of work has been done on the MTN network, more still needs to be done, especially as it patterns to 4G. The telco is anticipating a 60% reach in its 4G network coverage by the end of 2020.
In terms of its super-agent service, recall that MTN obtained its license from the CBN last year, thereby becoming the first Nigerian telco to do so. Subsequently, it launched MTN MoMo service and registered about a hundred and eight thousand (108, 000) agents across the country.
Approximately, about one million MTN subscribers have so far made use of the service since its launch, Moolman claimed. He stated that the company is excited by the prospects of MoMo, which basically enables the company to provide basic banking services to Nigerians, except lending.
Business
FG explains why Lagos-Ibadan rail line was not linked to the sea
The government in its explanation said that the delay was due to disruption by trucks going in and out of the port complex.
The Federal Government has stated why the China Civil Engineering Construction Company (CCECC) Nigeria Limited could not link the final part of the Lagos-Ibadan rail line to the sea.
The government in its explanation said that it was due to disruption by trucks going in and out of the port complex.
According to a press statement signed by the Director, Press and Public Relations of the Federal Ministry of Transportation, Eric Ojiekwe, this disclosure was made by the Minister of Transportation, Rotimi Amaechi, while on a routine tour of the Lagos-Ibadan rail line project on Saturday, April 10, 2021.
The Minister pointed out that the original blueprint for the Lagos-Ibadan rail line project was not adhered to by CCECC Nigeria Limited and TEAM consortium and therefore warned that the master plan of the soon to commence Ibadan-Kano rail line project should not be changed.
The statement from the ministry partly reads, “The Nigerian Government has restated its commitment to connect the whole country by rail with the soon to commence Ibadan-Kano Standard Gauge Rail project.”
Amaechi forewarned that the master plan of the soon to commence project should not be changed as the original blueprint for the Lagos-Ibadan wasn’t adhered to by Messrs CCECC Nigeria and TEAM consortium. The Minister who rode the train from Ebute-Meta to the 8.72 km Apapa Port Spur line, informed the media that the inability of Messrs CCECC Nigeria to link the final part of the rail line down to the sea is rather due to disruption by trucks going in and out of the port complex.’’
The Minister had noted that the Federal Government has paid its share of the counterpart funding of the Ibadan-Kano rail line project and is waiting for China-Exim bank to ratify its side of the agreement for the project to commence.
He also advised the Nigerian Railway Corporation (NRC) to acquire more land around the train stations and the rail tracks for future development adding that this will be near impossible to do in the future as whatever space available now would have been taken over by businesses attracted to the rail line.
In case you missed it
It can be recalled that full commercial train services commenced on the Lagos-Ibadan rail line after train operations commenced on December 7, 2020, with only Lagos, Ibadan and Abeokuta residents enjoying the train services.
This is because other minor and major stations along that route were yet to be completed.
IBADAN-KANO RAIL PROJECT TO COMMENCE SOON – FG
The @NigerianGov has restated its commitment to connect the whole country by rail with the soon to commence Ibadan-Kano Standard Gauge Rail project.
The Minister of Transportation, @ChibuikeAmaechi, while on routine tour of the— Federal Ministry of Transportation (@MinTransportNG) April 11, 2021
Manufacturing
Industrial Index loses -12.39 points, as BUA and Lafarge Cement shares top losers list
The NSE Industrials index lost 12.39 index points in the first trading week in the month of April.
The Nigerian Stock Exchange Industrial Index at the close of trading activities for the first week in the month of April closed on a bearish note, following a 0.66% decrease in the shares of BUA CEMENT and Lafarge.
At the close of trading activities on the Nigerian Stock Exchange on the 9th of April 2021, the industrial index depreciated by 55.01 index points, to close lower at 1,928.18 index points for the week.
When compared to the overall performance of the market, the NSE Industrial index underperformed, noting that the NSE All-Share Index and Market Capitalization depreciated by 0.66% to close the week at 38,866.39 and N20.3350 trillion respectively.
READ: COVID-19, VAT, FX scarcity adversely impacted our operations in 2020 – Nigerian Breweries boss says
What you should know
The NSE Industrial Index was designed to provide an investable benchmark to capture the performance of the Industrial Sector. It comprises the most capitalized and liquid companies in the industrial sector and is based on the market capitalization methodology.
The index tracks the performance of ten industrial companies on the Nigerian Stock Exchange which includes Dangote, BUA, and Lafarge Cement.
The overall performance of the companies for the week was bearish, as the index closed on a negative note driven by the decrease in the share price of BUA Cement and Lafarge.
MEYER (19.51) was the only gainer for the week, while BUACEMENT (-1.09%) and LAFARGE WAPCO (-3.00%) were the only losers for the week.
GAINER
- MEYER up by19.51% to close at N0.49.
LOSER
- WAPCO down by -3.00% to close at N21.00.
- BUACEMENT down by -1.09% to close at N72.70.
