Nigeria's anti-corruption agency is investigating MTN Nigeria's listing documents

Member, National Council Member, Nigerian Stock Exchange (NSE), Mrs. Erelu Angela Adebayo (left); Ex-Officio, NSE, Aigboje Aig-Imoukhuede; Chief Executive Officer, NSE, Oscar Onyema; Chief Executive Officer, MTN Nigeria Communication Plc, Ferdi Moolman; Chairman, MTN Nigeria Communication Plc, Dr. Pascal Dozie; Chief Executive Officer, Chapel Hill Denham, Bolaji Balogun; First Vice President, NSE, Abubakar Balarabe Mahmoud; and Director, MTN Nigeria Communication Plc, Gbenga Oyebode, during the Listing of MTN Nigeria Communications Plc on the Premium Board of NSE in Lagos (Guardian Nigeria)
  • MTN Nigeria confirms EFCC is investigating its listing books.
  • Analysts and stakeholders express concern over the free float accommodation granted to MTN Nigeria by the capital market regulators.
  • The telecom firm says it will cooperating fully with the authorities during the investigation.
  • MTN Nigeria shares records first loss on the stock market.

The Economic and Financial Crimes Commission (EFCC) has requested relevant information and documentation related to the listing of MTN Nigeria shares on the Nigerian Stock Exchange (NSE).

The local arm of the South African telecom firm listed on the Nigerian bourse last week as part of the requirements for the settlement of fine imposed on it by the regulator in 2015.

In a statement seen by Business Insider SSA by Pulse released by MTN Nigeria on Friday, the telecom firm said it received a letter on May 23, 2019, from the Economic and Financial Crimes Commission (EFCC) requesting information and documentation related to the listing of our shares on the Nigerian Stock Exchange (NSE).

“MTN Nigeria has not been accused of any wrongdoing by the EFCC.

“We wish to reiterate that we received all regulatory approvals required to list our shares on the Nigerian Stock Exchange, as publicly confirmed by the Nigerian Stock Exchange and the Securities and Exchange Commission (SEC).

“As a law-abiding and responsible corporate citizen, we are cooperating fully with the authorities. We are committed to good governance and to abiding by the extant laws of the Federal Republic of Nigeria,” Uto Ukpanah, MTN Secretary said.

Last week, investors fumed over an alleged share manipulation after the the telecom giant listed on the Nigerian Stock Exchange (NSE) by Introduction.

Since the listing, some analysts and stakeholders have also expressed concern over the free float accommodation granted to MTN Nigeria by the capital market regulators. In a report by ThisDay, believed that MTN Nigeria is planning to pent-up demand on its shares before offering through an IPO.

Another report also stated that the Securities and Exchange Commission (SEC) has launched an investigation into the listing matter. 

​The Nigerian stock market said the listing by the introduction of MTN Nigeria followed the Rulebook of The Exchange and met all the guidelines of the market. It also said stated that the telecom firm made shares available at the time of listing.

But Nigerians expressed bad feelings that some of MTN‘s core investors have been engaging in off-market sales in a bid to take advantage of the growing demand for the stock. This has pushed the market value from N90 to more than N140 per share.

MTN Nigeria shares dropped for the first time posting a loss on the Nigerian Stock Exchange (NSE) on Friday after its listing on May 16.

The stock dipped N9 to close at N140 per share following profit taking. This made market capitalisation to drop by N263 billion or 1.90% to close at N13.601 trillion compared with N13.864 trillion recorded on Thursday.

Similarly, the NSE All Shares Index (ASI) which opened at 31,477.51 lost 596.22 points or 1.90% to close at 30,881.29.

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