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MTN May Spin off Fibre, Fintech Businesses to Unlock Value

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MTN Group is considering spinning out its fibre and financial services units and will potentially list one of them to unlock value trapped in its core business, the company said on Wednesday.

MTN May Spin off Fibre, Fintech Businesses to Unlock Value

MTN, with 280 million subscribers across 21 countries in Africa and the Middle East, has been diversifying from its core business of connectivity to financial services and digital offerings such as instant messaging in search of higher returns, according to Reuters.

But it believes some of those businesses can thrive and be valued better if they are spun out from the core business, such as its fintech, fibre and data centre assets, Ralph Mupita, CEO said.

Within the core, there are some infrastructure assets and platforms that we believe the market is putting little to no value on

“MTN Group has enormous value that is not currently reflected in the share price,” Mupita said in an interview after the group reported a surge in 2020 earnings.

“Within the core (connectivity business), there are some infrastructure assets and platforms that we believe the market is putting little to no value on,” he said, adding that those assets are valued at low earnings multiples.

The company also suspended its dividend for the year despite the rise in 2020 earnings to focus on faster debt reduction at its holding company and due to uncertainties around repatriating funds from Nigeria, the timing of proceeds from its asset sale programme and the impact of Covid-19.

Open to options

MTN is open to third-party capital and partnerships in those fintech and fibre businesses over the medium term, “with the potential of either, in due course, that some of these assets could be listed or remain unlisted”, Mupita said.

Africa’s mobile phone operators are ramping up plans to bring banking to millions of Africans after the coronavirus crisis caused a surge in use of digital financial services led by a faster than anticipated switch to e-commerce and mobile banking.

In the year ended 31 December, MTN added 11.7 million mobile money users to reach 46.4 million, while fintech revenue rose by 23.9%, although capped by reductions in transaction fees to support customers during the pandemic.

The company is in the middle of a R25-billion divestment plan launched in March 2019 aimed at simplifying its portfolio over the next three to five years. Over the past year, it received about R4.3-billion in proceeds.

The board expects to announce a revised medium-term dividend policy in 2021 results in March 2022, said Mupita.

During the transition, MTN said the board anticipates paying a total ordinary dividend of at least R2.60/share for the 2021 financial year and will consider returning further cash to shareholders in the form of special dividends or share repurchases after the release of its 2021 results.

 

 


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How MIP Is Making a Difference in The Media Landscape

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MTN Media Innovation Program (MIP), a six-month fully-funded certificate fellowship designed for media professionals, is redefining journalism and content creation in Nigeria.

Now in its fourth year, MIP, launched by MTN Nigeria in partnership with the School of Media and Communication (SMC), Pan-Atlantic University, is empowering journalists, broadcasters, and content creators with the tools to adapt, innovate, and thrive in today’s challenging media landscape.

Despite promising forecast that the market value of the Nigerian entertainment and media industry will grow from US$9.0bn in 2023 to US$13.6bn in 2028, the media sector has since grappled with issues such as limited access to training, financial instability, and the rapid decline of traditional revenue models. With digital platforms disrupting how news is consumed and monetised, journalists and media owners must rethink their approach.

MIP provides a structured learning environment where media professionals gain first-hand exposure to new industry trends, digital transformation, and the intersection of media and ICT. From data journalism to audience engagement strategies, participants leave the program with actionable skills that are shaping the future of storytelling in Nigeria.

A standout feature of MIP is its international study visit to South Africa, where fellows engage with leading media institutions, visit MTN Group’s headquarters, and participate in hands-on training sessions at the University of Johannesburg. This global exposure provides invaluable insights into how media practitioners in other markets are leveraging technology and innovation to stay ahead.

For many participants, this has been a career-defining experience. Juliet Tontoye, Vice-President, MIP Cohort 3, describes the program as ‘a turning point.’ “When we share our experiences with our colleagues at our respective media houses, we realize that the program’s benefits and impact are easier to experience than explain. In the past three months, MIP has been such an eye-opening journey. It’s a fellowship every media professional needs to experience. MTN has been such a wonderful host and we know this costs millions of Naira. However, we believe it will have a profound impact on our colleagues.”

Beyond individual impact, MIP is helping reshape the media industry by fostering collaboration and leadership. By bridging the gap between traditional journalism and digital innovation, the program ensures that fellows graduate not just as better storytellers, but as industry disruptors with a mission to create lasting change. The program’s 60 alumni, now spread across Nigeria’s top media organisations, are applying their knowledge to revolutionise newsrooms, create digital-first content strategies, and introduce sustainable business models.

According to Tobechukwu Okigbo, Chief Corporate Services & Sustainability Officer, MTN Nigeria: “When we launched MIP in 2022, our goal was to enhance media professionals’ reporting capabilities and deepen their understanding of the technology sector, empowering them to become true media innovators. Seeing the impact of the programme over the past three years has been both inspiring and humbling. We are proud to continue this initiative and invite all eligible media professionals and content creators to seize this opportunity by applying for the fourth cohort.”

Similarly, the Dean of the School of Media and Communication, Pan-Atlantic University, stated: “SMC will leverage its extensive experience in training media professionals to equip this next cohort. And we will do this with our usual emphasis on creativity and ethics.”

With over 60 fellows trained since its inception in 2022, MIP is building a network of media advocates who are championing ethical reporting, storytelling innovation, and the smart use of technology in journalism.

MTN Nigeria has invested over NGN 300 Million in building Nigeria’s media industry in the past three years through its partnership with PAU.

As applications open for the 2025 cohort, the program continues to attract top-tier talent eager to take their careers to the next level and contribute to the transformation of Nigerian media.

For journalists, broadcasters, and content creators looking to future-proof their careers, the MTN Media Innovation Program is more than just a fellowship—it is a movement that is reshaping the industry, one fellow at a time.

Interested journalists, bloggers, and content creators can apply for the MIP 2025 at https://bit.ly/MTN_MIP2025.


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Nigeria Heads Anglophone Data Protection Committee

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Dr. Vincent Olatunji, Chief Executive Officer of the Nigeria Data Protection Commission, has been appointed as the Chair of the Anglophone Countries Committee of the Network of Africa Data Protection Authorities (NADPA).

The appointment, confirmed on April 2, underscores Nigeria’s leadership in Africa’s data privacy efforts. Speaking after his confirmation, Olatunji urged members to prioritize collective efforts in protecting the privacy rights of over 1.4 billion Africans.

Meanwhile, Nigeria will host the 2025 NADPA Annual General Meeting and Conference in May. Themed “Balancing Innovation in Africa: Data Protection and Privacy in Emerging Technologies,” the event will showcase Nigeria’s strides in digital economy development under President Bola Ahmed Tinubu’s administration.


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NCC Asks Consumers to Monitor Data Usage to Authenticate Consumption

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Nigerian Communications Commission (NCC) has charged the over 174 million telecoms subscribers in the country to constantly monitor their data usage to authenticate their consumption level.

NCC Asks Consumers to Monitor Data Usage to Authenticate Consumption

This follows concerns being raised by telecoms consumers about the rapidity of data depletion on their devices.

The Commission particularly enjoined the consumers to always contact their service providers to make requests for cases of discrepancies noted in their data usage.

While the consumers are expected to contact their service providers to request for their usage history/statement where inconsistency exists in their data usage as first step, the Commission said they may also escalate such issues to the Commission through its toll-free Number 622 and social media platforms, especially if their requests are not satisfactorily handled.

The Commission, which also made some clarifications regarding the concerns being raised by the consumers around data usage, said the need to inform the consumers on their concerns is part of its commitment to protect and appropriately inform and educate the telecom consumer on industry issues.

Making further clarifications around data speed and usage, the Commission said data speed is the speed at which data is transferred between two devices, measured in megabits per second (Mbps or mbps), stressing that given the spread of Internet services and the immense investment in the sector, data rates have continued to increase and users may be unaware of how to measure data speed.

The telecoms regulator explained further that websites such as www.fast.com also provide an easy way for consumers to measure Internet speed on any device at any location.

“The higher the data speed, the quicker pages load-downloads and uploads-occur and expectedly, the quicker data bundles are exhausted. So, as telecom consumers are able to do more on devices in less time, some consumers’ devices & network service providers make it possible to limit data speed to help users manage data usage better.

“In any case, most devices now include functions to measure data used by devices and it is imperative that users monitor same to authenticate data usage, such as applications left running on devices. Therefore, where discrepancies occur users may contact their service provider to request for their usage history/statement. If request is not dealt with satisfactorily then, users can contact NCC by calling 622 or engage the Commission via its social media platforms”.

It added that the data usage experience is a function of location, network equipment and users connected in a particular location.

 

 

 

 


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