Nigerian authorities seem to be increasing the pressure on telecom operators in the country. Truly, it has been observed that these operators, since 2014, have been suffering a number of penalties imposed by the sector’s regulatory institution. The recent case of MTN’s $5.2 billion fine (reduced to $3.9 billion) issued last October 29, set a record in this.

Now, it appears that Nigeria’s finance regulatory entity has decided to also level the bar. Speaking at a meeting of financial markets committee, Securities and Exchange Commission (SEC) Director General, Mounir Gwarzo, recommended that Nigeria’s government penalize all telecom operators refusing to be listed on the Nigeria Stock Exchange. “The federal government must ask these companies to get listed in stock exchange, and those which would fail to do so will be forced to through sanctioning,” he said according to local media. According to him, this will prevent these companies from evading tax considering that Nigeria’s financial market do not allow such situations to occur.

This is no new issue in Nigeria. Fact is, it was just recently reintroduced by various personalities of the country including Lamido Sanusi, former governor of Nigeria Central Bank and actual president of Black Rhino, African subsidiary of American investment group Blackstone. He believes that Nigerians should be able to invest and benefit from the success of telecom companies operating in their country.

The political sphere seems to have reached an agreement concerning the matter but appears to be currently facing two challenges towards its implementation. The first is of legal aspect as it happens that this condition had not been integrated in the various licences awarded telecom operators. The other challenge, purely technical, is that some analysts estimate that a sudden rush of significant telecom operators to the NSE may unbalance the market due to their financial weight.

Idriss Linge