Stakeholders in the Nigerian telecommunications industry are canvassing for mobile operators in the country to be listed on the stock exchange.
President of the National Association of Telecommunication Subscribers (NATCOMS), Deolu Ogunbanjo, told the News Agency of Nigeria (NAN) that it is imperative for telecom companies to be listed so that that they can service and enhance ownership base of the respective organisations.
Ogunbanjo believes quoting the companies on the Nigerian Stock Exchange (NSE) would broaden investment in the sector.
“Nigerians will love to also invest their money in the success recorded by the telecoms firms in the last 13 years of the country’s telecoms revolution,” Ogunbanjo said.
He added that the move will enable mobile operators have access to public funds that can be used in expanding, consequently bringing an end to the lingering poor services subscribers suffer from.
Nigeria’s Minister of Communications Technology, Omobola Johnson is also optimistic about listing the operators on the country’s bourse. According to the minister, it is appropriate that Nigerians benefit from the success recorded by the industry.
The minster also noted that the telecoms sector is the fastest growing sector of the Nigerian economy, and has been for the last five years, growing year-on-year at an average of 22-23 percent, thus contributing 8.3 percent to Gross Domestic Product (GDP) as at second quarter 2013.
Of the four telecoms companies – MTN, Globacom, Airtel and Etisalat – currently operating in Africa’s second-biggest economy, MTN Nigeria controls the largest percentage of the market with 55.2 million subscribers. According to the Nigerian Communications Commission (NCC), this also attests the group’s financial statement.
During the six months ended June, MTN Group’s EBITDA surged 6.4 percent to R27.7 billion ($2.7 billion), with revenues for the six months growing by 9.8 percent in spite of the tariff reductions in Nigeria and South Africa.
Meanwhile, NATCOMS president also urged the Nigerian government to desist from using legislative enforcement; rather, he adviced that they should be encouraged, since the market has a free entry and exit structure.
“Government should not force them to get listed through any legislative means but the Ministry of Communications Technology should make them see reasons why Nigerians want them on the exchange,” Ogunbanjo said.
