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MTN Dismisses Illegal Money Repatriation Charges

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Phutuma Nhleko, MTN group chairman, said on Thursday that accusations that Africa’s biggest mobile operator had moved funds illegally out of Nigeria had no basis.

MTN is facing an investigation by Nigerian lawmakers for allegedly illegally repatriating $14 billion between 2006 and 2016.

MTN has denied any wrongdoing.

Last year, Dino Melaye, Kogi West Senator, alleged that MTN illegally repatriated N13.9 billion, in connivance with four commercial banks and a serving minister.

On January this year, Justice Abdulaziz Anka of the Federal High Court in Lagos has ordered the temporary forfeiture of the sum of N8 billion allegedly belonging to MTN Communications Limited to the Federal Government.

The judge gave the order that the sum, suspected to be proceeds of unlawful activity, which are stashed in account number 0012005379 domicile in Ecobank, be temporarily forfeited following an ex-parte application to that effect filed before the court by the federal government.

Also affected by the order of the court is another account number 1013607079 containing billions of Naira domicile in Skye Bank Plc, whose owner has not file any application before the court to contest ownership.

Justice Anka further gave an order directing the publication of a notice in two National Daily newspapers inviting any person(s) who may have interest in the subject funds to, within 14 days of the publication of the order, show cause why a final order should not be made forfeiting the said funds to the government of Nigeria.

The judge also directed that the order should be served on the respective branch managers of the respondents banks and to stop forthwith all outward payments from the subject accounts and to immediately deliver to the court the respective statements of account with certificate of authentication and other relevant documents as at the date and time of service of the court order on them.

The suit, in which the government obtained the order, was marked FHC/L/CS/1676/2016 and filed by an Abuja based lawyer, Barrister John Opeyemi, on behalf of Attorney- General of the Federation (AGF), and an asset recovery agent of the federal government, Algaita Group Nigeria Limited.

In an affidavit sworn to by the Managing Director of Algaita Group Limited, Abdullahi Mohammed Maiturare, he averred that the AGF appointed his company as an Asset Recovery Agent of the Federal Government of Nigeria to track, freeze and recover funds and ensure it is remitted to the designated bank account of the Federal Government of Nigeria through legally permissible means as may be directed by the Attorney General of the Federation.

Maiturare, a former operative of the Economic and Financial Crimes Commission (EFCC), also claimed that his company has credible information at its disposal which reveals that funds which are strongly believed to be Federal Government of Nigeria’s funds stolen, diverted and laundered are hidden in some coded accounts in the two banks Ecobank and Skye bank.

He further maintained that credible information at his disposal, from reliable sources, indicates that there is an account maintained at Ecobank Nigeria Limited in the name of MTN Nigeria Communications operating account number 0012005379 that has a credit balance of N8 billion.

Maiturare also alleged that “from the totality of the credible information at our disposal, the applicants reasonably believe and satisfied that the funds in the possession of the two banks are unclaimed properties or proceeds of unlawful activity of stealing, diversion and money laundering of some public officials and their cronies in the private sector.

“Consequently if urgent steps are not taken to obtain certified documents of the accounts and statements thereof as well as stop outward transactions on the accounts, the funds may be dissipated and the account documentation or statements may be tampered with,” he insisted.

But in a preliminary objection, MTN Communications Limited has urged the court to discharge and set aside the orders made on it, as it relates to its account held with Ecobank Limited.

The telecommunications company, in an affidavit sworn to by a legal practitioner, Mrs. Ibukunoluwa Owa on behalf of MTN communication and filed before the court by Adeniyi Adegbonmire (SAN), the deponent averred that from information delivered to him by Babatunde Adewumi, the Manager, Banking and Treasury in the employment of MTN communication limited, the applicants did not comply with the order of the court.

He specifically pointed out that the order of the court directing the applicant to publish the ex-parte order was not obeyed, therefore the respondent was not aware of the order of the court until, Ecobank wrote a letter to the company to intimate it of the said order.

Mrs Owa also averred that the subject account was opened by Ecobank Nigeria upon instructions given by MTN on October 9, 2007 and that MTN has operated the account since then till date in accordance with banking practice applicable to current account held by corporate bodies in Nigeria.

She also claimed that the order has adversely affected the smooth running of the business of MTN as it finds it difficult to utilize the funds held in the account in pursuit of its lawful business.

She further maintained that the funds are not suspected proceeds of unlawful activity; therefore urge the court to discharge the order.

MTN’s application to discharge the order was accompanied with affidavit of urgency and application urging the court to hear the case during Christmas vacation, consequently no further date has been fixed for hearing.


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Telecom

Airtel Boosts NIPR Public Relations Week with Onsite Unlimited Data Connection

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Telecommunications service provider, Airtel Nigeria has collaborated with the Nigeria Institute of Public Relations (NIPR) to provide with unlimited internet access at the institute’s inaugural edition of the Nigeria Public Relations Week.

The trailblazing event themed ‘Leveraging Public Relations as a Critical Asset for Nigeria’s Economic and Reputation Renaissance’ is set to run from Monday, April 22nd to Friday, April 26th, 2024, and will welcome thousands of delegates across Nigeria to the prestigious June 12 Cultural Centre, nestled in the heart of Abeokuta, the Ogun State capital.

Speaking on the strategic collaboration, Femi Adeniran, Director, Corporate Communications and CSR, Airtel Nigeria, expressed enthusiasm about the partnership, stating, “Airtel is proud to support the Nigeria Institute of Public Relations in its endeavor to advance the field of public relations.

“The relevance of public relations practice in Nigeria cannot be overstated, as it plays a vital role in shaping perceptions, managing reputations, and influencing public opinion. Hence, our support is a demonstration of our commitment to empowering individuals and organizations with innovative solutions that drive progress and create an enabling society.”

According to NIPR, through the PRWeek Organizing \Committee Chairman, Mr Yomi Badejo Okusanya, the NPRW will gather over 2,000 experts in the fields of economics, PR, and nation-building to discuss strategies for effectively communicating government policies and initiatives to the public.

Other activities at the NPRW will include conferences, the annual general meeting, workshops, induction of new members, breakout sessions with students as well as traditional rulers and a tour of some legacy projects in Ogun state.

With Airtel’s provision of onsite unlimited data connection, attendees and participants can enjoy unparalleled access to online resources, real-time updates, and interactive engagements throughout the duration of the event. This will significantly support the exchange of ideas, foster networking opportunities, and elevate the overall experience for all stakeholders involved.

Airtel Nigeria remains committed to offering unwavering support for initiatives aimed at driving innovation, collaboration, and nation-building.


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World Earth Day: Kuda Partners with Wecyclers to Clean up Communities in Lagos

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In a landmark partnership aimed at promoting sustainable waste management practices, Kuda Microfinance Bank and Wecyclers collaborated to commemorate World Earth Day on April 22, 2024. The collaboration featured a series of impactful activities designed to raise awareness and foster environmental stewardship.

The activities on the day included a webinar session facilitated by renowned expert in environmental management and head of ESG at Wecyclers, Omobolanle Olowu, during which she shared startling data on plastic pollution in Nigeria. She also discussed the importance of proper waste management and its significance in preserving the planet for future generations, providing valuable insights and practical tips on reducing, reusing, and recycling waste.

In a published study on plastic pollution in Nigeria, the country ranked ninth globally for plastic pollution with an estimated 2.5 million tons of plastic waste generated annually and less than 12% of those waste materials recycled.

Also on the day, Kuda staff volunteered for an environmental cleanup exercise, during which they took to parts of Apapa Road, Ebute Metta to empty gutters and collect plastics and other recyclable materials for recycling.

In addition, volunteers from Kuda gained firsthand knowledge of innovative waste management solutions during a guided tour of Wecyclers’ facility in Ebute Metta. The tour showcased Wecyclers’ pioneering efforts in recycling and waste upcycling, demonstrating how technology can be leveraged to address environmental challenges effectively.

Speaking about the collaboration, Emmanuel Femi-Adejobi, Senior Brand Manager at Kuda, expressed enthusiasm for the partnership’s potential to drive positive change. “We [Kuda] are committed to promoting sustainability and environmental consciousness. We also believe that our responsibility is not only to our customers and other stakeholders but also the environment that we all share. Partnering with Wecyclers allows us to inspire communities to adopt eco-friendly practices,” he said.

“Our initiatives towards achieving a sustainable environment and achieving a green earth goes beyond just recycling. We aim to inspire a broader commitment to waste minimization, reusing materials and proper sustainable waste management. As we commemorate World Earth Day, we encourage our staff, customers and general public as a whole to embrace actions that promote a green, safe earth for all,” he added.

Likewise, Esther Chibueyin Fagbo, Head, Human Resources and Partnerships at Wecyclers, emphasised the importance of collective action in addressing environmental issues. “It is very important for organisations to collaborate on initiatives that help save the environment. We are excited about this partnership because such partnerships are crucial to creating awareness and educating people about the impact of plastic waste on the planet and how they can contribute to a change that we all deserve.”

Kuda’s collaboration with Wecyclers emphasises its commitment to sustainability and championing proactive efforts through education, engagement and action to create an environmentally conscious population and a sustainable tomorrow.


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Defending the Foundations for Connectivity

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By Engr. Gbenga Adebayo

In 2001, when the first GSM call was made in Nigeria, how many of us would have envisaged the digital world that we live in today?

Defending the Foundations for Connectivity

Gbenga Adebay, chairman, ALTON

The pace of growth and the rate of adoption of telecoms solutions in Nigeria has been revolutionary. It is a globally acknowledged case study that we should be proud of and a clear demonstration of what can be achieved.

Almost all of us today are reliant on the network connectivity that it has enabled in different shapes and forms. From the simple need to communicate with loved ones, to the digital platforms that enable our access to and consumption of entertainment, financial products and other critical services.

Our reliance on these systems is becoming more and more acute, whether it is citizens, governments, or corporations.

System downtime is increasingly disruptive and offline manual redundancies are often in the advanced stages of being phased out. The pace of this transition is not slowing down. With the core infrastructure in place, innovation is driving the exponential growth of services that ride on it. From the fully adopted social media that has changed the way we interact, to the emerging Artificial Intelligence (AI) revolution.

While this innovation is enabling exciting new possibilities, there is a tendency to focus on those opportunities, to the detriment of the core infrastructure on which it rides.

It is imperative that we retain a focus on the optimisation of that infrastructure and enable continued investment in its development.

We have seen how the transition from 2G, through to 3G, 4G and 5G have each enabled the development of more and more sophisticated solutions.

The continued development of core infrastructure has to be sustainable, and over the last few months we have begun to see the challenges that the operators that provide it are facing.

Both MTN and Airtel have declared significant foreign exchange (FX) losses in Nigeria, and the stress is not linked to them alone.

The entire ecosystem is battling with a range of challenges that must be addressed. If we fail to do so, the downstream impact on innovation will be severe. Telecoms infrastructure requires a base level of investment to maintain its current capabilities, and significant additional investment to expand and grow. It is capital intensive and that capital has to be generated through sustainable business models.

At the heart of the challenge the industry faces is the issue of rising costs.

Recent financial losses are directly linked to the cost of operating towers that rely on inputs like diesel, which have increased significantly as the Naira has depreciated.

The provisions large telecom companies have had to make, and the consequent losses and impact on their reserves is a red flag.

It tells us that business as usual is not sustainable. If we continue as we are, then those companies will struggle to continue to invest in and maintain existing services.

But those costs are not the only challenge. General cost inflation, multiple taxation, regular and damaging vandalisation of infrastructure and the costs associated with regulatory compliance all help contribute to the high cost of operations.

We cannot continue to follow a path that asks those companies to simply accept those rising costs. It is no longer sustainable, and we have reached an inflection point.

This is a critical moment for the industry.

How we approach and resolve it will define the future of Nigeria’s digital economy.

If you want to be able to enjoy the benefits that digitisation brings. If we want the infrastructure that enables AI and helps us drive growth, then we must take action now.

Cost-reflective tariffs, like it or not, are simply non-negotiable. We have seen the impact of price controls in other segments of the economy, like power.

If providers cannot operate sustainable business models, then they stop investing. When that happens, the existing infrastructure starts to crumble.

For power, a consumer can choose to take ownership of the solution by buying a generator, or a solar panel.

For fuel, the government can step in as the provider of last resort and manage a subsidy regime that mitigates the impact on the population. Those options are not available in the telecoms sector. There is no self-help solution.

We fully understand and appreciate the financial stress that Nigerians are experiencing today. The cost of living is the single most significant factor in most people’s daily lives.

But those people are still able to enjoy the benefits that connectivity brings, at the price they paid before these challenges became so acute.

Imagine a future in which the gains of the last twenty years are reversed. Nigeria, and Nigerians simply cannot afford it. The pain that we would feel under those circumstances would be exponentially worse.

We need to find a long-term, sustainable and manageable solution to this problem. Prices will need to rise, but action needs to be taken in a measured way, through sustainable conversations and partnership with the government. It is time to address this head on.

 

Engr. Gbenga Adebayo is chairman, Association of Licensed Telecom Operators of Nigeria (ALTON).


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