MIRA INFORM REPORT

 

 

Report Date :

29.01.2013

 

IDENTIFICATION DETAILS

 

Name :

MTN NIGERIA COMMUNICATIONS LIMITED

 

 

Registered Office :

35, Moloney Street, Lagos Island, Lagos

 

 

Country :

Nigeria

 

 

Date of Incorporation :

08.11.2000

 

 

Com. Reg. No.:

RC: 395010

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Services Provider of Cellular Telecommunication

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Nigeria

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

nigeria - ECONOMIC OVERVIEW

 

Oil-rich Nigeria has been hobbled by political instability, corruption, inadequate infrastructure, and poor macroeconomic management, but in 2008 began pursuing economic reforms. Nigeria's former military rulers failed to diversify the economy away from its overdependence on the capital-intensive oil sector, which provides 95% of foreign exchange earnings and about 80% of budgetary revenues. Following the signing of an IMF stand-by agreement in August 2000, Nigeria received a debt-restructuring deal from the Paris Club and a $1 billion credit from the IMF, both contingent on economic reforms. Nigeria pulled out of its IMF program in April 2002, after failing to meet spending and exchange rate targets, making it ineligible for additional debt forgiveness from the Paris Club. In November 2005, Abuja won Paris Club approval for a debt-relief deal that eliminated $18 billion of debt in exchange for $12 billion in payments - a total package worth $30 billion of Nigeria's total $37 billion external debt. Since 2008 the government has begun to show the political will to implement the market-oriented reforms urged by the IMF, such as modernizing the banking system, removing subsidies, and resolving regional disputes over the distribution of earnings from the oil industry. GDP rose strongly in 2007-11 because of growth in non-oil sectors and robust global crude oil prices. President JONATHAN has established an economic team that includes experienced and reputable members and has announced plans to increase transparency, diversify economic growth, and improve fiscal management. Lack of infrastructure and slow implementation of reforms are key impediments to growth. The government is working toward developing stronger public-private partnerships for roads, agriculture, and power. Nigeria's financial sector was hurt by the global financial and economic crises, but the Central Bank governor has taken measures to restructure and strengthen the sector to include imposing mandatory higher minimum capital requirements.

 

Source : CIA


Company name

 

MTN NIGERIA COMMUNICATIONS LIMITED

 

 

OPERATIONS

 

The company is one of the leading operator of Cellular Telecommunication Services Provider in Nigeria.

 

 

COMPANY LOCATION

 

The company is located in a commercial area at Golden Plaza Building, Awolowo Road, Falomo, Ikoyi, Lagos, Nigeria

 

 

IDENTIFICATION

 

COMPANY NAME:                                 MTN NIGERIA COMMUNICATIONS LTD.

REGISTERED ADDRESS:                     35, Moloney Street, Lagos Island, Lagos, Nigeria.

CORP. HEAD OFFICE ADDRESS:         Golden Plaza Building, Awolowo Road, Falomo, Ikoyi, Lagos, Nigeria

TRADING NAME:                                  MTN Nigeria

TEL:                                                       234-1-3200533, 0803 902 0001, 08039005043

FAX:                                                       08039029611 4-1-2619009, 2625815

E-MAIL:                                                  customercare@mtnnigeria.net, info@mtnonline.com

WEBSITE:                                           www.mtnonline.com

                                                                       

Currency:                                             All monetary quoted in this report are in Nigerian Naira, the local urrency or unless otherwise stated. The exchange rate is N150 to 1 US $.

 

SUMMARY

 

NATURE OF PREMISES:                      Owned office space as head office occupying approximately  2,500 square metres

           

DATE INCORPORATED:                       8th November, 2000

           

YEAR BEGAN OPERATION:                8th August, 2001

 

LEGAL FORM:                                      Private Limited Company

 

REGISTRATION NO:                             RC: 395010

           

SHARE CAPITAL:                                 2.509,999,999,999,999

 

ISSUED CAPITAL:                                 10,000,000

           

FINANCIAL YEAR END:                        31st December

                                                           

                                               

BOARD OF DIRECTORS

 

Gbenga Oyebode                                                                                  NIGERIAN

6, Turnbull Road, Ikoyi, Lagos.

 

Dosekun Kofo                                                                                       NIGERIAN

4, Mosley Street, Ikoyi, Lagos.

 

Robert Duncan Nisbet                                                                           SOUTH AFRICAN

20 Tennysen Avenue, Senderwood, 2145 , South Africa.

 

Campbell Utton                                                                                     SOUTH AFRICAN

Coral Tree Crescent, Fourway Gardens, 2055. South Africa.

 

Feleng Molusi                                                                                       SOUTH AFRICAN

3, Alice Lane Sandown Ext. 38, Sandton, South Africa.

 

Karrel Willem Pienaar                                                                             SOUTH AFRICAN

3, Alice Lane Sandown Ext. 38, Sandton, South Africa.

 

Robert Gordon Chaphe,                                                             SOUTH AFRICAN

3, Alice Lane Sandown Ext. 38, Sandton, South Africa.

 

Mohammed Sani Bello Co. (Rtd)                                                            NIGERIAN

Plot 27, Imani Estate, Maitama, Abuja. FCT Nigeria

 

Pascal G. Dozie                                                                                    NIGERIAN

Plot 1261, Adeola Hopewell Street, Victoria Island, Lagos

 

Victor Odili

27B, Bishop Oluwole Street, Victoria Island, Lagos                                 NIGERIAN

 

Ahmed Dasuki

57, Kofo Abayomi Street, Victoria Island, Lagos.                                                NIGERIAN

 

Abubakar S. Bello                                                                                 NIGERIAN

Plot 27, Imani Estate, Maitama, Abuja, FCT.

 

Faria De Christian                                                                                  SOUTH AFRICAN

216 – 4th Avenue, Fairland 2195

 

Ahmad Farroukh                                                                                    CANADIAN

4, Aromire Street, Ikoyi, Lagos.

 

Andrew Bling – Chief Executive Officer                                                  SOUTH AFRICAN

4, Aromire Street, Ikoyi, Lagos.

 

 Joseph Solan                                                                                       BRITAIN

9412, tobin Cicle Potomac, MD 20854

 

 Gbenga Oyebode

6M, Turnbull Road, Ikoyi, Lagos.                                                            NIGERIAN

 

 Robert Duncan Nisbet                                                                          SOUTH AFRICAN

Tennysen Avenue, Sandwood 2145, Sanderwood

 

Babatunde Folawiyo                                                                              NIGERIAN

38, Warehouse Road, Apapa, Lagos.

 

 

 Sifiso Dabengwa                                                                                  SOUTH AFRICAN

3, Alice Lane, Sandown Ext 38, SA

 

Nhleko Phuthuma                                                                                  SOUTH AFRICAN

3, Alice Lane, Sandown Ext 38, SA

 

Fatima Jakoet                                                                                       SOUTH AFRICAN

36, Winter Crescent, Green Haven, Athlone 7764, Capetown. SA

 

MTN International (Mauritius) Ltd.                                                                         

Suite 525, Barkhu Whart, Le Caudon Waterfront, Port Louis

 

Celtelecom Investment Ltd.                                                                     

C/O Mutual Trust Management, Mauritius Ltd,

608 St. James court, St, Denis Street, Port Louis

 

SASPV Ltd.                                                                   

608 St. James court, St, Denis Street, Port Louis

 

N-Cell Limited                                                                 

Geneva Place, Waterfront Drive road, Town, Tortola, British Virgin Island

 

Mobile Communications Holding Ltd.                                                                  

340-345 Barkly Warf, Le Caudan Waterfront, Port Louis

 

 Hermitage Overseas Corporation                                                                        

Quijano & Associates (BVI) Ltd, Road Town, Tortola

 

 Universal Communications Ltd.                                                                          

4th Floor, Caribbean House, George Town, Grand Cayman

 

Celted Funded Shares Ltd.                                                                     

C/O Standard Bank Trust Company (Mauritius) Ltd.

4th Floor, Les Jamalacs, Vieux Consek Street, Port Louis

 

International Finance Corporation (IFC)                                                                

2121 Pennysylvania Avenue, N.W. Washington DC 20433.

BACKGROUND

 

MTN Nigeria was incorporated on 8th November, 2000 with registration number (RC: 395010) and began operation in August 2001.  The corporate office is located at Golden Plaza Building, Awolowo Road, Falomo, Ikoyi, Lagos, Nigeria. The company occupies ground and first floor of the plaza. The building is opposite Church of the Assumption, Falomo, Ikoyi, Lagos.

 

The company is part of the MTN Group, Africa’s leading cellular telecommunications company. On May 16, 2001, MTN became the first GSM network to make a call following the globally lauded Nigerian GSM auction conducted by the Nigerian Communications Commission earlier in the year. Thereafter the company launched full commercial operations beginning with Lagos, Abuja and Port Harcourt.  Since it was launched in August 2001, MTN has steadily deployed its services across Nigeria. It now provides services in over 300 cities and towns, more than 10,000 villages and communities and a growing number of highways across the country, spanning the 36 states of Nigeria and the Federal Capital Territory, Abuja. Many of these villages and communities are being connected to the world of telecommunications for the first time ever.

 

The company’s digital microwave transmission backbone, the 3,400 Kilometre Y’elloBahn was commissioned by former President Olusegun Obasanjo in January 2003 and is reputed to be the most extensive digital microwave transmission infrastructure in all of Africa. The Y’elloBahn has significantly helped to enhance call quality on MTN network.  It subsists on the core brand values of leadership, relationship, integrity, innovation and “can-do”. It prides itself on its ability to make the impossible possible, connecting people with friends, family and opportunities.

 

MTN Nigeria later expanded its network capacity to include a new numbering range with the prefix 0806, making MTN the first GSM network in Nigeria to have adopted an additional numbering system, having exhausted its initial subscriber numbering range - 0803.   MTN Nigeria now has a new numbering range with the prefix 0703 and 0706.

 

In its resolve to enhance quality customer service, MTN Nigeria has also introduced a self-help toll-free 181 customer-care lines through which subscribers can resolve their frequently asked questions free of charge.  MTN’s overriding mission is to be a catalyst for Nigeria’s economic growth and development, helping to unleash Nigeria’s strong developmental potential not only through the provision of world class communications but also through innovative and sustainable corporate social responsibility initiatives.

 

MTN paid $285m for one of the four GSM licenses in Nigeria in January 2001. To date, in excess of US$1.8 billion has been invested in building mobile telecommunications infrastructure in Nigeria.

 

During our visit on 23rd January, 2013, we spoke with the Front Desk Officer who refused to disclose her name but confirmed and acknowledged our document. When asked for the difference in name, she stated that MTN Nigeria and MTN COMMUNUCATIONS LIMITED is same company. According to her, no visitor without prior appointment is allowed to see the top personnel of the company and that she is not in best position to give any information about the company. She later promised to submit our document to the appropriate authority who will get back to us in due course.

 

Conclusion: Based on our visit, available information brief discussion with the Front Desk Officer and level of business activities witnessed in the premises, we are of the opinion that the company is a legal entity which operates a legitimate business.  As such, any business relationship with the company should be mutually beneficial.

 

 

ADVERTISING AND PUBLIC RELATION AGENCIES

 

-   DDB Lagos, Corporate & Financial Limited etc.

 

 

PRODUCTS MARKETED

 

 

Others Are:

 

 

CORPORATE SOCIAL RESPONSIBILTY (ACADEMIC)

 

MTN has been involved in several social responsibility in education, sports, rural developments and economic empowerments, Youth Skill Development Project, Health Portfilio Projects etc.

 

 

AFFILIATED FOREIGN COMPANY

 

MTN Group Limited

 

 

TRADE REFERENCES

 

Subject has both local and international references

 

 

PAYMENT REFERENCES

 

Subject has both local and international references

 

Remarks Payment References:  

MTN Nigeria has excellent payment record.

 

 

BRANCHES

 

The company has many branch offices, Regional Offices, Service Centers, Walk-In Assistance Centers, Connect Stores etc in East, West, South and Northern parts of Nigeria.

 

 

PERFORMANCE RANKING

 

* Quality of Management:          VERY GOOD

* Ethics & Integrity:                   GOOD

* Ownership Structure:              GOOD

 

 

PHYSICAL VISIT

 

Company’s Premises                                               

Corporate Affairs Commission

 

 

FINANCES

 

The company’s Audited Accounts was not available as at the time of compiling this report. However, we advise that the maximum credit limit to be accorded to the company could be put at 5,000,000million US dollars ($5m USD). This opinion is as a result of the company’s performance in the telecommunication industry in Nigeria and also, it is among the top major fast growing companies in Africa.

 

 

INDUSTRIAL OVERVIEW/ OPERATING ENVIRONMENT

 

Subject is operating in an industry with very great potentials. The telecommunication Services sector of the Nigeria economy has a lot to explore when it comes to the need for expansion, improvement of product quality, work force development and general technical expertise. Mainly private individuals dominate this sector. Despite the huge capital required for setting up this investment, it has grown in its leaps and bounds over the decades in the nation, although, the efforts of the Federal Government cannot be ruled out. The Government has put in place different policies that support private individuals to secure loans/ mortgages from banks and other financial institutions. However, to record a groundbreaking record in this sector, foreign investors are inevitable. They facilitate the importation of high-tech equipment, which will boost quality production. 

 

This sector of the economy has great potentials for intending investors.

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism)

 

Public Notice from various sources including but not limited to: The Courts, Nigerian Prison Service, Economic & Financial Crimes Commission (EFCC), National Drug Law Enforcement Agency (NDLEA), National Agency for Food & Drugs Administration and Control (NAFDAC), Independent Corrupt Practices and other related offences Commission (ICPC) Etc.

 

No negative information on subject from the above agencies as at the time of compiling this report.

 

 

 

 

OFFICIAL REMARKS

 

Having carried out all necessary verifications on the company , our investigations revealed that MTN Nigeria Commucations is duly registered in Nigeria with a registered address  at 35, Moloney Street, Lagos Island, Lagos, Nigeria, while  its Corporate  Head office is located at Golden Plaza Building, Awolowo Road, Falomo, Ikoyi, Lagos, Nigeria with several offices and sales outlets nationwide.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.89

UK Pound

1

Rs.84.92

Euro

1

Rs.72.51

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.