By Enam Obiosio

The recent ruling by the Federal High Court in Lagos, dismissing an attempt by an MTN shareholder to block the Federal Competition and Consumer Protection Commission’s (FCCPC) investigation into the telecom giant, has brought to light critical lessons on corporate governance, regulatory compliance, and the essence of investor relations (IR) in Nigeria’s evolving business environment.

On February 9, 2025, Justice F.N. Ogazi rejected a suit filed by Emeka Nnubia, an MTN shareholder and legal practitioner, describing his attempt to stop the FCCPC’s investigation as “wailing more than the bereaved.” The ruling reaffirmed the FCCPC’s authority to oversee anti-competitive practices and consumer protection, even in highly regulated industries such as telecommunications, signaling the importance of regulatory clarity and shareholder engagement.

Investor Relations: Bridging Shareholder Interests and Corporate Strategy

At the heart of this case lies a key IR issue: the delicate balance between protecting shareholder value and ensuring compliance with regulatory requirements. Of course, effective IR goes beyond financial reporting; it is about fostering transparency, aligning corporate strategy with shareholder expectations, and managing relationships with regulators, investors, and other stakeholders.

Investor confidence thrives on stability, good governance, and proactive communication. While Nnubia’s concern about the potential impact of an FCCPC investigation on MTN’s operations may have stemmed from a desire to protect shareholder interests, the court’s ruling underscores the need for shareholders to act within the boundaries of established corporate governance principles and regulatory frameworks.

The Role of Regulatory Oversight in Protecting Shareholders and Consumers

The FCCPC’s investigation into MTN is a reminder that robust regulatory oversight is not only essential for consumer protection but also critical for long-term shareholder value. The telecom sector is central to Nigeria’s economy, and ensuring a level playing field is key to sustaining investor confidence. The court’s ruling confirmed that the FCCPC and the Nigerian Communications Commission (NCC) share concurrent regulatory oversight in the telecom industry, with the FCCPC playing a vital role in addressing anti-competitive practices.

For companies such as MTN, this dual oversight necessitates a comprehensive compliance strategy that harmonises the expectations of multiple regulators while safeguarding the interests of shareholders and customers.

Key Lessons for Shareholders and Corporate Boards

• Collaboration, Not Confrontation: Regulatory inquiries are an opportunity for companies to demonstrate transparency and corporate responsibility. Shareholders must recognise that collaborating with regulators often strengthens a company’s reputation and market position.
• Proactive Communication: IR teams should be at the forefront of engaging shareholders during regulatory matters, providing timely updates, and managing concerns to prevent misinformation and unnecessary panic.
• Understanding Regulatory Frameworks: Shareholders should be familiar with the regulatory environment governing their investments. The court’s explanation of the FCCPC’s jurisdiction and its collaborative role with the NCC provides a roadmap for how investors can better understand the interplay between different regulators.

A Wake-Up Call for Investor Relations Professionals

The ruling serves as a wake-up call for IR professionals to deepen their engagement with both shareholders and regulatory authorities. In an era where regulatory scrutiny is increasing, especially in key sectors such as telecommunications, companies must prioritise transparent communication and stakeholder engagement to mitigate risks and build trust.

Ultimately, the essence of IR lies in ensuring that all stakeholders—shareholders, regulators, and the public—work together towards shared goals: business growth, market stability, and consumer protection. For MTN and other companies navigating Nigeria’s dynamic regulatory landscape, this case offers a valuable lesson in balancing investor activism with corporate responsibility.

Enam Obiosio is the Managing Director of Astudity Limited, a Nigerian-based company, specialising in investor relations and public relations.