MTN hammered
MTN’s share price took a beating on Tuesday, closing over 8% lower on news that the Nigerian Communications Commission will require that it cut off millions of subscribers.
Nigeria ordered the nation’s wireless companies to bar outgoing calls from phone numbers not linked to the National Identity Number (NIN) in a bid to control extortions and abductions.
The system is similar to South Africa’s RICA requirements.
The rule will come into effect Monday, the National Communications Commission (NCC) said in an emailed statement.
President Muhammadu Buhari in December 2020 ordered all phone lines to be linked to an identity number to curb rising incidents of abductions in the country’s northern region.
Kidnappers usually call relatives of their victims with unregistered subscriber identity module, or SIM cards, which authorities in Africa’s most populated nation are unable to trace.
The latest rule will mean about 75 million phone lines that aren’t linked to the national identity number won’t be able to make calls.
Out of the nation’s 198 million phone connections, 125 million SIM cards had been verified and linked to 78 million unique national identity numbers, according to the commission’s statement.
MTN’s Nigerian unit is the largest operator with 75 million subscribers, giving it a market share of about 38%.
Other major operators include billionaire Sunil Mittal-backed Airtel Africa and Globacom.
MTN confirmed that its Nigerian unit received a formal directive from the NCC to implement a phased suspension of services to affected subscribers.
From 4 April 2022, unregistered subscribers were placed on receive-only status.
“In line with operating licence requirements, MTN Nigeria has complied with the directive and implemented the restrictions on only outgoing voice calls of affected subscribers,” the company stated.
“All other services remain available to all subscribers, including those that are yet to submit their NINs.”
MTN Nigeria said it supports the work being done by the Federal Government of Nigeria to build a reliable and sustainable National Identity Management system.
“It will aid national economic planning and enhance security, governance and service delivery at all levels,” MTN stated.
“In addition, MTN Nigeria has deployed more than 4,200 points of enrolment across the country to support the NIN enrolment drive. This network continues to be expanded to ensure that enrolment is within reach of all Nigerians.”
MTN Nigeria is also working with the National Identity Management Commission to accelerate the bulk verification of NINs collected.
“MTN Nigeria has made good progress with around 47 million subscribers having submitted their NINs by 31 March 2022,” the company said.
“This represents approximately 67% of the MTN Nigeria’s subscriber base and 76% of service revenue for FY 2021.”
Outgoing voice revenue from the current subscribers who have not submitted a NIN amounts to about 9% of MTN Nigeria’s service revenue for the 2021 financial year on an annualised basis, the company said.
“For MTN Group, this would amount to approximately 3% of FY 2021 service revenue on an annualised basis.”
Reporting with Bloomberg
Now read: MTN price increases
Loading ...