Proshare Logo
   Market Date: 19-12-2014   
Agriculture ARTS FINANCE All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted OTC MARKET World of Business

Telcos oppose proposed Telecom Listing Bill

Category: Telcos


  Read (3093)
Telcos oppose proposed Telecom Listing Bill

December 1, 2011 /By Adline Atili
 

The umbrella body of telecommunications companies in Nigeria, the Association of Licenced Telecommunications Operators of Nigeria (ALTON) has criticised the proposed bill by the House of Representatives to mandate shareholding in telecommunications companies.

 According to the body, the bill, if passed, will hinder Foreign Direct Investments (FDI) in the country. ALTON stance is that the decision to sell telecom shares to Nigerians should not be subjected to a legislative enforcement but should be the commercial decision of the Telcos concerned to get listed in the nation’s bourse or remain as a limited liability company. 


This is coming on the heels of the House of Representatives Committee on Capital Market’s position that the Global System for Mobile communications (GSM) operators-MTN, Globacom, Airtel and Etisalat-and the oil companies should be made to sell shares to Nigerians on the floor of the nation’s stock exchange.
 

 

Speaking with The Nation on the issue, ALTON’s president, Gbenga Adebayo said there was no ground for compelling telecom operators to sell shares to Nigerians.  

Adebayo, an engineer, stressed that Nigeria has a long way to go in boosting foreign direct investment into the nation’s telecom sector. He said making such bill a law could hinder investments into the sector.  

According to him, the decision to be listed on the nation’s stock exchange is purely a commercial decision of the telecom companies and does not require subjection to any legislative debate. He said: “There is no ground to compel operators to list their shares on the NSE. It is unheard of. The world over, such a decision is purely commercial and I don’t think it should be subjected to legislative debate in order not to discourage foreign direct investment into the country. We have never heard that any Telco has been compelled to sell shares in their countries of operations.   

“We don’t believe that because of the perception that operators are making huge profits, they should be mandated to be listed on the stock exchange, without taking into cognisance the fact that they also spend a large chunk of their profit in network expansion and infrastructure roll out, with attendant challenges in an economy such as Nigeria.  

“ALTON strongly stood against the House of Representatives Bill on Telecommunications (Equity) (HB173) in 2009. This bill set to mandate shareholding in telecommunications companies. Our position was submitted to the Nigerian Investment Promotion Commission (NIPC) in May 2009.” 

He said ALTON’s position was that if the bill is passed as drafted, it will fundamentally alter the Federal Government’s Foreign Direct Investment policy and negate the role of NIPC; as well as amount to re-enacting of the Indigenisation Act of 1972.   

Adebayo stressed that the position of the operators remains the same: We don’t need any law to compel us to sell shares on the NSE. 



Tags: , 



Comment With Your Facebook or Yahoo! ID


Latest news


News on Telcos

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Newsletter
Contact Us
Volunteer Program
Message from CEO
Resources

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
WebTV
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

#1minNews
News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Newsletters
Discussion Forum
Policy

Subscriber Agreement
Privacy Policy
Data Policy
Disclaimer
Copyright Policy
Trademarks
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Training
Legal Support Services
Web/Technology Services
File a Complaint

CBN Governor 2014