NSE: MTN tops gainers chart amid N275bn infraction payment to FG
…As market capitalization hits N13.30trn
Motolani Oseni
There was a positive trend at the end of trading activities on the Nigerian Stock Exchange (NSE) on Tuesday, with MTN Nigeria Communications leading the gainers’ chart closing at N131.70 per share, amid payment of N275 billion SIM infractions to the federal government.
Also, the market capitalisation which opened at N12.938 trillion inched N367 billion to close at N13.305 trillion. This is even as the All-Share Index returned to 30,000 marks, growing by 844.74 points or 2.88 per cent to close at 30,218.14 against 29,373.40 on Monday.
A breakdown of the gainers’ table shows that MTN Nigeria garnered N11.95 to close at N131.70 per share.
Dangote Cement followed with a gain of N7 to close at N185, while Forte Oil appreciated by N2.25 to close at N27.80 per share.
Guaranty Trust Bank gained 90k to close at N31.30, while Africa Prudential added 34k to close at N3.94 per share.
On the other hand, Unilever Nigeria led the losers’ table after shedding N1 to close at N31 per share.
Meanwhile, the Nigerian Communications Commission (NCC) yesterday disclosed that MTN has paid N275 billion SIM infraction fine as balance of N55 billion was due this month.
The Executive Vice Chairman of NCC, Umar Danbatta, made this known while speaking on the state of MTN fine payment at the valedictory service organised for the Minister of Communications, Adebayo Shittu, in Abuja.
He said following a negotiated reduction of the N1.04 trillion fine on MTN Nigeria to N330 billion and in line with the staggered payment arrangement, MTN has, so far, paid N275 billion to the federal government.
Mr Danbatta said part of the fallout of the negotiated terms of payment of the fine is the listing of MTN on the Nigerian Stock Exchange (NSE), and this is being done.
What this means, according to the staggered arrangement, is that May 31, 2019 would be the deadline for the telecoms company to pay the sixth and final tranche of the balance of N55 billion.
“After six months of negotiation and re-negotiation over the fine which led to the reduction to N330 billion, it was agreed that MTN would pay a balance of N280 billion in six tranches.
“This was in addition to the “goodwill” payment of N50 billion earlier made by MTN to the government.
“Specifically, MTN began the payment structure with the payment of N30 billion into NCC’s Treasury Single Account (TSA) with the Central Bank of Nigeria (CBN) 30 days from the date of the agreement dated June 10 2016.
“Subsequently, MTN paid N30 billion on March 31, 2017; N55 billion on March 31, 2018; N55 billion on December 31, 2018 and on March 31, it paid N55 billion.
“The balance and final tranche of the payment will be paid by May 31, 2019, in line with the staggered payments structure agreed by MTN and Nigerian government.
