How attractive is Nigeria’s capital market for telcos?
Will MTN Nigeria's planned listing on the Nigerian Stock Exchange spur other telcos to come aboard? Olusola Teniola, President of the Association of Telecommunications Companies of Nigeria joins CNBC Africa to tell us what this means for Nigeria’s telco space.
Thu, 30 May 2019 14:18:45 GMT
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AI Generated Summary
- MTN's decision to list on the Nigerian Stock Exchange sets a precedent for other telecom companies to consider public listing as a means of funding and growth.
- Opportunities in broadband expansion and financial inclusion present significant areas for growth and investment in the Nigerian telecom sector.
- Industry associations like the Association of Telecommunications Companies of Nigeria are actively engaged in supporting telecom players like MTN in navigating challenges and fostering a conducive regulatory environment for the industry.
The telecommunications sector in Nigeria has been abuzz with news of MTN Nigeria's planned listing on the Nigerian Stock Exchange. This move has sparked discussions on the attractiveness of Nigeria's capital market for telcos and the potential impact on the industry. Olusola Teniola, President of the Association of Telecommunications Companies of Nigeria, shed some light on the current landscape and what the future holds for telecom players in the country.
One of the key concerns surrounding MTN has been its past disputes with authorities. Teniola acknowledged these challenges but expressed optimism that the conditions are now right for MTN's listing. He highlighted that other telecom companies are also considering listing on the stock exchange, following MTN's lead.
One of the reasons behind MTN's decision to list was the need for increased funding, with other players in the industry also looking at options such as debt. Teniola emphasized the importance of listing on the Nigerian Stock Exchange to fuel growth and encouraged other telcos to explore this avenue for their own expansion strategies.
Looking ahead, Teniola discussed the opportunities for telecom players in Nigeria, particularly in the areas of broadband expansion and financial inclusion. He emphasized the need for significant investments in fiber infrastructure to support the anticipated growth of 5G technology by 2025. He also highlighted the potential for further developments in international connectivity and payment services to drive the industry forward.
In relation to MTN's engagement with authorities, Teniola shared that the Association of Telecommunications Companies of Nigeria has been involved in discussions to support MTN. While he did not provide specific details, he expressed confidence in MTN's ability to overcome challenges and reaffirmed the industry's commitment to compliance and contribution to the economy.
Overall, the planned listing of MTN Nigeria on the Nigerian Stock Exchange marks a significant milestone for the telecom industry in Nigeria. It signals a shift towards greater financial transparency and accountability while opening up new avenues for growth and investment within the sector. As other telcos observe these developments, it is likely that more companies will consider listing on the stock exchange to leverage the benefits of being a publicly traded entity.