Mobile service provider, MTN Nigeria has announced the approval of its first 800MHz spectrum band license (Channel 1) renewal for an additional 10 years by the Nigerian Communications Commission (NCC). The renewal will be effective from January 1 to December 31, 2034.
In a statement released by the Nigeria Exchange Limited on Tuesday, MTN added that the regulator has also approved a four-year extension of MTN Nigeria’s second 800MHz spectrum band license (Channel 2), which will expire on 31 December 2030.
“MTN Nigeria Communications PLC (MTN Nigeria or the ‘Company’) hereby notifies Nigerian Exchange Limited and the investing public that the Nigerian Communications Commission (NCC) has approved the renewal of its first 800MHz Spectrum band licence (Channel 1) for an additional ten years, effective from 1 January 2025 to 31 December 2034,” part of the statement reads.
MTN Nigeria Chief Executive Officer, Karl Toriola, expressed that the successful approval is a testament to the company’s commitment to delivery of quality 4G services to subscribers.
“We are pleased with the successful renewal and harmonization of our 800 MHz spectrum licenses, which lay a solid foundation for the ongoing delivery of 4G services to our customers. This enables us to continue to meet the demand for data and is integral to our broader strategy for enhancing connectivity,” he said.
The development follows the recent call for improved mobile and sustainability of the telecom sector which saw the approval of a 50 per cent telecom tariff hike by the NCC.
On Monday the regulator after the approval said the decision is necessary to address the widening gap between rising operational costs and stagnant tariffs. The development will see the rate of phone calls increase to N16.5/minute and data to N431.25/GB.
Reacting to this, Toriola noted that the move is a significant milestone in ensuring the long-term sustainability of the telecom sector while empowering millions of people and businesses and contributing to the country’s overall economic development.
“This tariff adjustment represents an important step towards addressing the impacts of the prevailing economic challenges on our business and industry. It will enable us to maintain the critical investments required to deliver reliable, high-quality services to Nigerians. We remain committed to supporting Nigeria’s digital transformation agenda and driving inclusive growth for all stakeholders,” he expressed.
MTN stocks top Nigeria Exchange Investors’ gain
Additionally, MTN Nigeria topped the investor’s gain on the Nigerian Exchange after it appreciated by 10 per cent to close at N256.30 per share.
At the end of Tuesday’s trading session, investors on the platform recorded a gain of N471.37bn as the market capitalization rose to N63.3tn. A total of 127 equities participated in trading, with 29 gainers and 28 losers, reflecting mixed sentiments in the market.
Followed by MTN Nigeria is SCOA Nigeria, which gained 9.93 per cent to close at N2.99. Notably, Omatek Ventures and Universal Insurance Company rose by 9.88 per cent and 8.7 per cent, respectively.
On the other end, Secure Electronic Technology recorded the biggest drop of 9.88 per cent to close at N0.73 per share.
Abbey Mortgage Bank followed with a loss of 9.09 per cent, closing at N3.30. Sunu Assurances Nigeria and Deap Capital Management & Trust also dropped by 8.21 per cent and 7.08 per cent, respectively.
On shares trading, Lasaco Assurance led in volume with 108m, followed by Access Holdings with 44m, United Bank for Africa with 27.9m, and Zenith Bank with 26.7m shares.
Investors also traded 439.64m shares valued at N8.48bn in 13,087 deals. This market activity boost represents a 24 per cent increase in volume and a 7 per cent rise in turnover compared to the previous session, although deals declined by 6 per cent.
Notably, MTN Nigeria has been in the process of strengthening its capital base with the recent Series 15 and 16 of its Commercial Papers (CP) issuance last month.
The initiative, targeted at raising N50 billion, follows the successful implementation of the Series 13 and 14 CP issuance on November 29 where the company raised N72.18 billion, representing 144 per cent above the N50 billion target.
For the past year, MTN Nigeria has built upon its series of CP issuances. This provides a robust approach as the company seeks to balance its capital structure. In December 2023, MTN Nigeria raised N72.1 billion through CP issuance, followed by an N52.9 billion issuance in November 2023. These funds were used to work capital.
The CP programme enables MTN Nigeria to service its short-term debts and meet cash flow demands without much reliance on long-term financing.
Read More: MTN Nigeria set to raise another N50bn through commercial papers after previous successful editions.
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