Enabling business environment and market forces critical to bourse listing by telcos– Airtel CEO

A conducive business environment coupled with market dynamics are success factors germane to the listing of telecommunications firms on the Nigerian stock market, so says the Managing Director and Chief Executive Officer, Airtel Nigeria, Segun Ogunsanya.  But GutsyPen4ICTD learns, Mr. Ogunsanya’s statement is with a proviso-barring challenges confronting operators in the sector.

According to the CEO of the telco, an enabling business environment, policies that promote ease of doing business and market forces in line with best practices are key factors that can encourage telcos to list on the Nigerian Stock Exchange.

Ogunsanya gave this hint while delivering his presentation entitled “Creating an Enabling Environment for Public Listing of the Economy’s Commanding Heights: The Case for Telecoms Sector“ at the 2017 Chartered Institute of Stockbrokers (CIS) Annual National Workshop held in Abuja.

He noted that following the liberalisation of the telecoms sector in 2001, the nation has benefitted in terms of employment creation, attraction of foreign direct investments and social-economic development.

Said he: “The sector currently accounts for 10 percent of the nation’s Gross Domestic Product (GDP) and therefore makes it a critical national infrastructure. In addition, connectivity among Nigerians has been enhanced with the 145,350,702 active lines as at May 2017, investments in the sector as at Q1 2017 stood at $68billion with FDI contribution amounting to $35billion, while over 10,000 direct jobs and 1.3million indirect jobs have been created.”

He stressed that telcos are committed to providing qualitative world class telecommunications services and in turn contribute to the socio-economic development of the country. However, operators are still facing challenges which stifle growth and inhibit services delivery.

He urged government to address lingering industry issues such as multiple taxation, prohibitive right-of-way fees, broadband spectrum pricing/ availability among others.

According to him, high interest rates are a major draw-back on use of debt financing, the fluctuation of foreign exchange rate has adversely impacted use of debt financing, while adverse market conditions occasioned by recession have adversely impacted viability of public equity alternatives.

The CIS Annual Workshop themed “Transition from Recession to Global Economic Power: A Working Template for Nigeria” was a convergence of stakeholders in the nation’s financial services sector.

Chief Executive Officer of the Nigerian Stock Exchange (NSE), Oscar Onyema; Director General, Securities and Exchange Commission (SEC), Mounir Gwarzo; Minister of Finance, Kemi Adeosun were among top government functionaries, captains of industry and dignitaries that attended the event.

The workshop was organised in conjunction with the Nigerian Capital Market Institute, a training affiliate of the Securities and Exchange Commission (SEC), the apex regulator of the Nigerian Capital Market