2018 ANNUAL REPORT
To the Future… Together
MTN Nigeria Foundation Ltd/Gte Annual Report 2018 1 At MTN Foundation, we continue to deploy our resources to ensure successful execution of sustainable projects and initiatives in Education, Economic Empowerment and Health to ensure a lasting impact on these communities.
2 MTN Nigeria Foundation Table of Contents
Profile - Vision and Chairman’s Board of Directors’ 02 MTN Nigeria 03 Mission 05 Statement 09 Directors 10 Report Foundation Statement
Detailed The MTNF Projects Legal and Corporate 12 Report from 49 Management 50 Approved for 51 Administrative 52 Governance the Executive Team 2018 Information Structure Secretary
Report of the Statement of Statement Statement of Statement of 55 Independent 57 Comprehensive 58 of Financial 59 Cashflows 60 Change in Fund Auditor Income Position
Summary Notes to the Other Five Year MTNF Projects 61 of Principal 64 Financial 71 Requirements – 72 Summary 73 Approved for 2018 Accounting Statement Local Legislation Spread across the Policies Country
Annual Report 2018 1 PROFILE
MTN Nigeria Communications Limited (MTNN) has been at the forefront of the mobile telephone revolution in Nigeria since 2001. With success comes the responsibility of giving back to the society in a meaningful and sustainable way, tempered by care for the environment and concern for people - both now and in the future.
The MTN Nigeria Foundation Limited by Guarantee (MTNF) was borne from desire to have a long term positive impact on communities where MTN Nigeria Communications Limited (MTN) operates.
Creating specific structures that ensure that empowerment initiatives and interventions can be replicated nation- wide, the Foundation focuses its Corporate Social Responsibility efforts on initiatives with the aims of supporting and fostering sustainable development.
2 MTN Nigeria Foundation OUR VISION – to be a leader in Corporate Social Responsibility initiatives in Nigeria measured by the impact and sustainability of our projects on our host communities…
This plays out in 3 key areas Education, Health and Economic Empowerment
Annual Report 2018 3 OUR MISSION – to improve the quality of life in the areas of Health, Education, Economic Empowerment on a sustainable basis. Our objectives are;
Alleviation of health Facilitation of economic Provision of access to challenges currently empowerment of educational opportunities facing the country Nigerian citizens
over and To date, the MTN spread across 36 states Foundation has 850 3 of the country and the 4 MTN Nigeria Foundation project sites causes Federal Capital Territory. Dear MTNF Stakeholder, On behalf of the Board and Management of the MTN Nigeria Foundation, it is my pleasure to present this 13th Annual Report of the MTN Foundation for the year ending December 31, 2018.
In the year under review we met strategic milestones and surpassed critical targets that have gone a long way in providing support and succor to our communities. These were achieved by the Foundation’s pledge of N800m to various causes and projects.
...to the millions of MTN Nigeria customers whose support remains the bedrock of all that we have been able to achieve over the years, I say thank you for your patronage and support. Prince Julius Adelusi-Adeluyi, OFR Chairman, MTNF Board of Directors
Annual Report 2018 5 Guided by an unwavering Our collaboration with MTN Nigeria ecosystem partners, commitment to the socio-economic Oracle, Digital Bridge Institute, IBM and Google led to an ICT growth and development of and Business Skills Training aimed at empowering youths across Nigeria with strategic ICT and Business skills – critical Nigeria and the upliftment of to improving their business or professional careers. humanity through Corporate Social Responsibility, in 2018, we continued These two initiatives struck These two initiatives are just a a chord with me. As a few of the various successes to partner with government, the pharmacist, I am increasingly we achieved in the course private sector and other ecosystem worried by the dangers and of the year, and more details partners to launch and sustain negative impact of drug abuse about these and other MTN in our country, especially on Foundation projects will be projects that have changed the our young ones, who are our provided in this report. cause of things and touched lives. future and deserve all the encouragement they need to Our Financial Report, which reject the temptation, while presents an overview of One of such projects is the MTNF Anti focusing their energies on the foundation’s financial Substance Abuse Program (ASAP), launched productive pursuits, such as activities, is set out on page in December 2018. This is a change the one provided by the ICT 57. intervention aimed at curbing the prevalence and business skills trainings. of substance abuse and addiction in Nigeria using a 3 pronged strategy - Awareness, This is a call to action not just Advocacy and Empowerment. for the Foundation, but for everyone.
6 MTN Nigeria Foundation Projects
The following programmes were approved by the Board of Directors: MTNF DNA Lab What Can We Do – Request for Together, Phase 3 Additional Funds
Sponsorship of the Nigeria MTNF Community Universities Theatre Art Development Projects Donations. Festivals
MTN Nigeria donated the sum of N800,000,000.00 in the financial year ended December 31, 2018. MTNF Arts and Culture MTNF Arts and Cause Phase 3: Theatre Culture Cause Phase Also, MTN Nigeria provided support with services and benefits Productions 3: Theatre for Schools valued at N226,687,000.00 for staff costs, office and general expenses such as travel and training. MTNF MUSON Scholars MTNF Easy Health The financial statement showing an analysis of funds committed Program Access Project this year to the various programmes can be found on page 57
Investment Policy and Returns Monitoring & MTNF Anti-Substance Evaluation Plan We remain committed to ensuring that all donations are Abuse Program properly managed and maximized in line with strict corporate 2018 – 2019 and compliance policies. Donations are invested in short and long term deposits pending utilization on designated projects. Interests earned during the year amount to N438,072,000.00 MTNF ICT and Business MTNF Orphanage Skills Training Phase 2 Support Initiative (Kano)
MTNF Arts & Culture Cause MTNF Community Phase 4: Theatre Productions Development Initiative & Visual Arts
Part Sponsorship of Funds for MTNF International Day for Persons Projects Leveraging with Disabilities (IDPWD)
Annual Report 2018 7 Conclusion The year ahead promises to be an eventful one for our parent company as it prepares for its public listing in 2019.
That being said, I am pleased to note that MTN remains fully committed to supporting the work of the Foundation, and I also remain extremely thankful and honored for the immense and consistent support given to us. December 2018 I am also grateful for the continued support of my fellow Directors, staff of the Foundation, and our partners, whose insight enables us to deploy our resources strategically towards ensuring an enduring impact on the host communities where we operate.
Last but not least, to the millions of MTN Nigeria customers whose support remains the bedrock of all that we have been able to achieve over the years, I say thank you for your patronage. Prince Julius Adelusi-Adeluyi, OFR Chairman
8 MTN Nigeria Foundation Board Of Directors
Alhaji Mrs. Mosun Muhammadu Belo-Olusoga Danlami DIRECTOR DIRECTOR
Mr. Hon. Dennis Reginald C. Okoro Okeya DIRECTOR DIRECTOR
Mrs. Prince Julius Aishatu Mr. Pamela Tobechukwu Adelusi-Adeluyi, Okigbo OFR, mni Sadauki DIRECTOR DIRECTOR CHAIRMAN
Annual Report 2018 9 Directors’ Report For the year ended 31 December 2018 The Directors present their report together with the audited financial statements for the year ended 31 December 2018. Principal activities MTN Nigeria Foundation Limited by Guarantee (the Foundation) was incorporated in Nigeria as a company limited by guarantee on 19 July, 2004 under the Companies and Allied Matters Act of Nigeria, Cap C20 LFN 2004.
The Foundation is a non-profit making organisation actively engaged in corporate social responsibility initiatives. To Registered Office this end, the Foundation seeks to implement viable and beneficial projects across the country in the selected focus 4, Aromire street, Ikoyi, areas of Health, Education and Economic Empowerment.
Operating results The following is a summary of the MTN Nigeria Foundation Limited by Guarantee (the Foundation) operating results:
December December 2018 2017 N N Donations 800,000,000 887,989,000 (Deficit)/surplus of income over expenditure for the year (167,514,000) 14,904,000
The Foundation received the sum of N800 million (2017: N887.99 million) relating to donations from the profit of MTN Nigeria Communications Limited for the financial year ended 31 December 2018.
Directors and Their Interests The Foundation directors have no interest in contracts/projects (2017: Nil). The directors who served during the year to the date of this report were as follows: Prince Julius Adelusi-Adeluyi, OFR Chairman Alh. Mohammadu Danlami Director Mr. Dennis Okoro Director Mrs. Aishatu Sadauki, OON Director Mrs. Mosun Belo-Olusoga Director Hon. Reginald Okeya Director Muhammad Siddiqui (resigned 30 June 2018) Director Tobechukwu Okigbo Director Mazen Mroue (appointed 25 September 2018) Director
10 MTN Nigeria Foundation Donations Corporate social responsibility projects in the Health, Education and Economic Empowerment portfolios during the year ended 31 December 2018 were funded through donations received over the years from MTN Nigeria Communications Limited (MTN Nigeria). MTN Nigeria is committed to making available up to 1% of its profit after taxation to the Foundation. All donations are received from MTN Nigeria. Taxation The Foundation is exempt from tax as it is a non-profit making organisation. MTN Nigeria Foundation Ltd/Gte Gifts In Kind In addition to the donations mentioned above, MTN Nigeria made certain resources available to the Foundation. Details of these are given in Note 19.4 of the financial statements. Employment of Physically Challenged Persons This does not apply as the Foundation does not have employees (2017: Nil). Health, Safety at Work and Welfare of Employees This does not apply as the Foundation does not have employees (2017: Nil). Employee Involvement and Training This does not apply as the Foundation does not have employees (2017: Nil). Auditors The Auditors, PricewaterhouseCoopers, will continue in office in accordance with Section 357(2) of the Companies and Allied Matters Act. Statement of Directors’ Responsibilities For the year ended 31 December 2018
The Companies and Allied Matters Act requires the directors to prepare financial statements for each financial year that give By order of the board a true and fair view of the state of the financial affairs of the Foundation at the end of the year and of its profit or loss. The responsibilities include ensuring that the Foundation: a) Keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the Foundation and comply with the requirements of the Companies and Allied Matters Act of Nigeria, Cap C20 LFN 2004. b) Establishes adequate internal controls to safeguard its assets, to prevent and detect fraud and other irregularities. Uto Ukpanah c) Prepares its financial statements using suitable accounting policies supported by reasonable and prudent judgement and estimates, which are consistently applied. Company Secretary The directors accept responsibility for the annual financial statements, which have been prepared using appropriate accounting Lagos, Nigeria policies supported by reasonable and prudent judgments and estimates, in conformity with International Financial Reporting Standards (IFRS) and the requirements of the Companies and Allied Matters Act of Nigeria, Cap C20 LFN 2004 (CAMA). 28 March 2019
The directors further accept responsibility for the maintenance of accounting records that may be relied upon in the preparation of financial statements, as well as adequate systems of internal financial controls. FRCN/2014/NBA/00000005748 Nothing has come to the attention of the directors to indicate that the Foundation will not remain a going concern for at least twelve months from the date of this statement. Annual Report 2018 11 Report from the Executive Secretary To the Future… Together
In preparation for 2018, we convened a workshop to evaluate 2017 activities, share cause marketing best practices and brainstorm on strategic solutions for 2018.
MTN Foundation stakeholders, including Management, Board Members, key MTN Nigeria partners, Communication Agency partners, Lagos Business School and implementation partners were invited to help in setting goals, identifying challenges and brainstorming strategic solutions. We agreed that the goal for MTN Foundation in 2018 would be to create a brand that genuinely cares and makes lives brighter for countless Nigerians through significant social contributions in the communities where we work.
12 MTN Nigeria Foundation Our Activities
With this goal in mind, our objectives of • Raising awareness for the Foundation’s activities • Aligning the Foundation and MTN activities and communications • Creating a broad base of advocates for MTN and the Foundation • Making the Foundation a cultural point of reference for doing good in Nigeria • Assuming a thought leadership position in the Nigerian Corporate Social Investment landscape were successfully broken down into the following activities. 1 2 3 4 5
• Streamlining • Reflecting brighter • Building • Broadening the • Building partnerships/ activities for greater lives, Corporate relationships at understanding joint coalitions of like- impact. Identity and Easy, multiple levels. and identification minded corporate Personalised, In with Foundation by bodies. • Moving beyond PR. control, Connected • Creating platforms creating opportunities and opportunities for participation. • Demonstrating expertise strategy. with published research for multiple • Harnessing digital and and opinions. • Creating new activities voices to tell the traditional channels to based on MTN core Foundation (and build the Foundation’s • Becoming advocates competencies. MTN) story. narrative. (locally and internationally) for the • Quantifying the causes we champion. Foundation’s contribution to MTN brand equity. With the listed objectives in view we created activities that will take us; MTN, MTN Foundation, Our partners, our esteemed stakeholders and Nigeria into the Future…
Annual Report 2018 13 A future that is brighter! A future that brings with it higher hopes, greater awareness and brighter lives. Let’s go into this future together.
During our 2017 strategy session we streamlined MTN Foundation’s various projects to “CAUSES”. The following projects (“particular causes” that we will be known for) were achieved in 2018 under the three portfolios (Economic Empowerment, Education and Health):
14 MTN Nigeria Foundation Mother and Child Health (MCH) Initiative Mother And Under the Health portfolio, projects that affect mothers and children were classified under Child Health the Mother & Child Health (MCH) Cause. This cause is aimed at contributing to the reduction of Nigeria’s high maternal and infant mortality rate by Cause creating awareness about the scourge and drawing attention to the various projects and interventions implemented by MTNF towards improving the health of mothers and children in Nigeria.
The projects under this cause are; #Yello Heart Campaign, Maternal Ward Support Projects, Yellow Doctor Mobile Medical Intervention, Orphanage Support Initiative, Primary Health Care Projects and Sickle Cell Support projects.
Annual Report 2018 15 YELLO HEART CAMPAIGN
Under the MTNF Maternal Ward Support Project, MTN Foundation renovated and equipped 24 selected maternal wards in public hospitals across the country. The 24 selected hospitals are located in Abia, Cross River, Niger, Kaduna, Sokoto & Oyo States.
MTNF in partnership with the Federal Ministry of Health officially launched the Mother & Child Health (MCH) initiative in Abuja on October 26, 2017. The Yello Heart initiative was conceived to build an alliance of strategic partners across private, public and nonprofit sectors and has adopted a collaborative approach to stem the rising incidents of maternal and child mortality in our country. The Yello Heart activities in its first pilot phase was carried out in the states (Abia, Niger, Cross River, Oyo, Ogun and Kaduna) where MTN Foundation already has a footprint in the selected 24 maternal wards. In each of the states visited, the following activities were held:
Health Forum: Town Storms:
The Forum is a multi-stakeholder platform The town storm involves the brand ambassadors for engaging health care providers, engaging with the host communities, creating pregnant women and mothers, traditional awareness of the project and the organisation’s rulers, traditional birth attendants and contributions towards achieving the main men in order to enlighten them on maternal objectives of reducing maternal and child and child health. It is aimed at correcting mortality in Nigeria. The primary aim is to drive cultural norms and practices as well and traffic to those maternal wards were workshops lending the required support to women held. in the society. We had in attendance the Health Workshops: Advocacy Walk: different state health Commissioners, permanent secretaries, wife of the The hospital workshops are planned to provide The walk is another advocacy vehicle to governors, traditional rulers and key a more detailed and intimate sessions with create awareness about mother and child stakeholders in the state. the nursing mothers and pregnant women. health. It was designed to hold in the state Here, experts take women through sessions on capitals or city centres led by the First eight (8) topics including: Malaria in Pregnancy, Lady/Wife of the Executive Governor of the Nutrition, Breastfeeding, Labour, Immunisation host state. etc. Also, kits (New Born & Delivery) were given to participants courtesy of MTN Foundation. 16 MTN Nigeria Foundation MTNF and MTNN representatives; Prince Julius Adelusi-Adeluyi, OFR, mni Chairman Yello Heart MTN Foundation, Mrs. Aishatu P. Sadauki, Director MTN Foundation, Mr. Tobe Okigbo, Corporate Relations Executive, Nonny National Launch Ugboma, Executive Secretary MTNF. This initiative was officially launched at Sheraton Hotel, Abuja on October 26th, 2017. The Minister for Health was represented by the Permanent Secretary Federal Ministry of Health, Dr. Osarenoma Clement Uwaifo. Other dignitaries include directors and heads of departments at the Federal Ministry: the Director of Family Health Department, Dr. Bimpe Adebiyi - who represented the Permanent Secretary of the Ministry, Representative of the Senior Special Adviser to the President on the SDGs – Mr. Yaya Hamza, Director Health Desk.
OGUN STATE LAUNCH:
L- R: Dr. N.O. Aigoro, Permanent Secretary State Ministry of Health, who represented the Honourable Commissioner for Health, Dr. Babatunde Ipaya, Mr. Dennis Okoro, Director MTNF and other Directors from the State Ministry of Health
Annual Report 2018 17 KADUNA STATE LAUNCH More Pictures from Yello Heart Launch Across Nigeria
ABIA STATE LAUNCH
CROSS RIVER STATE LAUNCH
18 MTN Nigeria Foundation NIGER STATE LAUNCH MTN Market Doctor Initiative In continuation of the foundation’s focus on Mother & child health, the MTNF Easy Health Access (MTNF EHA) was introduced and implemented in partnership with a company called Market Doctors. The project aimed at making primary healthcare accessible to market women and their children.
It was designed to take affordable healthcare to mothers and children with minimal distortion of their socio-economic activities. This initiative was carried out in Lagos and Rivers States as a pilot phase, just to strengthen and enable the foundation’s contribution towards reducing maternal & infant mortality in Nigeria. This intervention happened in collaboration with the state governments by way of nominating and supervising the selected nine markets in both states. During the interventions in the selected markets, MTNF Market Doctors carried out the following interventions across board:
Health Education, Weight, Height, Basal Metabolic Index, Blood Pressure, Blood Sugar, Hepatitis B, Voluntary HIV Test and Counselling, Family Planning Services, Medical Consultation, Deworming, Medication, Referral Services and 3 Months Post Project Free Consultation in Clinic.
Annual Report 2018 19 MTN Market Doctor Initiative
The Rivers Market Doctor outreach was carried out At the launch, the Rivers State Governor was in the following five markets: New Layout Market, represented by the Honourable Commissioner for Borokiri, Rumuwoji Market, Oyigbo Market, Echieta Health; Prof. Chike Princewill, and the Honourable Market Eleme and Ndoni Main Market respectively. Commissioner for Commerce; The outreach lasted for five days, starting from Dr. Mrs. Nancy Ipirinye Chidi-Nwankwo. November 15-22, 2018. The Five days outreach programme commenced with a courtesy visit to His The Market Doctor in Rivers was rounded off at Excellency the Executive Governor of Rivers State; Ndoni Main Market with a grand ceremony, hosted Nyesom Ezebunwo Wike. His entire cabinet members, by Chief Victor Odili. O.O.N, Director MTN Nigeria. consisting of Commissioners, Special advisers and other senior aides were in attendance. The MTNF team was led by Hon Reginald Okeya, Director, MTN - NDONI MARKET ACIVATION Foundation. Pictures from the courtesy visit:
20 MTN Nigeria Foundation MARKET OUTREACHES IN SEVERAL STATES
Stakeholders at the Lagos State flag off
Annual Report 2018 21 The official flag off ceremony was held on December 17, 2018 at Tejuosho Market, Phase 2, Yaba. MTNF had the cooperation of the state government in galvanizing the different Iyalojas of the selected markets. MTNF Emergency Dignitaries at Lagos Launch:
The Commissioner for Health was Ward Intervention represented by Director, Disease Control Lagos State Min. of Health, Dr. Ashim Eniola Erinosho., Hon. Tajudeen Phase II- South East Ajide Yusuf, Chairman Surulere LCDA, represented by Hon. Oyewole Kolawole, (Anambra, Ebonyi supervisor for Health Surulere Local Government Area, Mrs. Olayinka Oladunjoye, Hon. Commissioner for And Imo States) Commerce, Industry & Cooperatives: represented by Mrs. Adesina Helen Titilayo (Deputy Director Commerce). The MTN Foundation Emergency Ward Intervention Mr. Fola Padonny, Permanent Secretary is aimed at providing medical equipment and Ministry of Local Government & consumables for hospitals located in emergency Community Affairs, represented by Mrs. prone locations, to enhance their ability to respond Olaniawo Olubunmi, Dr. Shelu Akintade, to victims of emergency situations. Hospitals located Chairman Association of General around emergency locations have been known Medical Practitioners Lagos State, to struggle with attending to victims for lack of Mr. Stevenson Edward, GM, Tejuosho resources including equipment and materials. Shopping Centre, Alhaja Amisu; Iya Loja The Lagos State Market Doctor Tejuosho Ultra Modern Market Phase II,. To enhance medical facilities to attend to victims outreach was carried out in Pastor Okey Anoro; Babaloja Tejuosho of emergency in the South East, a process was put various markets (Tejuosho Market, Ultra Modern Market Phase II. into consideration and selected 6 hospitals that Phase 2, Yaba, Mile 12 Market, benefitted from the intervention in 3 selected states Ketu, Ayangburen Market, Sabo, MTNF was represented by; Gbenga namely: Anambra, Ebonyi and Imo. Ikorodu and Folashade Tinubu- Oyebode MFR; Director MTN Ojo (FTO), Ebute-Ero Market) in Nigeria, Dennis Okoro; Director MTN Lagos. The outreach lasted for Foundation and Ms. Nonny Ugboma; four day, starting from December Executive Secretary MTN Foundation. 17-20th, 2018.
22 MTN Nigeria Foundation Each beneficiary hospital maternal ward in the selected ANAMBRA STATE HANDOVER states received the following items:
• Protective linen The Governor was represented by the Commissioner for • Protective aprons Health, Dr. Joe Akabuike. Other dignitaries include: Dr. • scrubs Basil Nwankwo, Chief Medical Director Chukwuemeka • Antistatic clogs • Rechargeable Pulse Oximeters Odumegwu Ojukwu University Teaching Hospital, Dr. • BP Aneroid Self-calibrating machine + stand Eberechukwu Anukwu, Chief Medical Director, Onitsha • Inflatable Adult 4-Splints set with case General Hospital. Also in attendance were directors, heads • Inflatable Adult 6-Splints set with case of departments, doctors and nurses from the hospital. • Adult full leg inflatable Splint • Digital Patient Monitors suitable for adult & pediatric The MTNF team was led by; Mr. Dennis Okoro, MTNF with NIBP, ECG Temperature and SPO2 Director and Senior Manager, Program Implementation, • Trolley for Monitor (Truscope Mini) Abasi-Ekong Udobang. • Stretchers • AED (Automatic External Defibrillator) • Egg Machine 12-LEAD , 3 CHANNEL + C Software and Standard accessories • Stethoscope • Infra-red thermometer • Suture set • Nebulizer • Ferno Combi Head Immobilizer Scoop EXL Stretcher • Emergency Crash Cart/Trolley • Pen torch, rechargeable • Diagnostic set in a hard plastic case • First Aid Box • Spine Board (baxstrap) • Extraction Collars for spine Board (Baxstrap) • Extraction Collars for spine Board (Baxstrap) • Aspirator (Suction ) Machine • Trolley for Aspirator (Suction ) Machine • Sanitizers- • Laryngoscopes • Hospital gowns for patients • Ambu Bag (Adult) • Ambu Bag (Child) • Digital Standing Blood Pressure Monitor • Clogs • Fracture Immobilizer • Various medical consumables
Annual Report 2018 23 EBONYI STATE HANDOVER
The Executive Governor of Ebonyi, His Excellency, Engineer Chief David Nweze Umahi State was represented by Honourable Commissioner of Health; Dr. Umezurike Daniel. The ceremony had the following dignitaries in attendance:
Dr. Mike Urom, Director Public Health Ebonyi State Ministry of Health, Lady Anoke Eze-nnenna Ogo, Director Administration, Ebonyi State Ministry of Health. Dr. Onwe Emeka Ogah, Chief Medical Director, Federal Teaching Hospital, Abakaliki and Dr. Robinson Chukwudi Onoh, Chairman, Medical Advisory Committee.
The MTNF team was led by; Mr. Dennis Okoro, MTNF Director and Senior Manager, Program Implementation, Abasi-Ekong Udobang.
IMO STATE HANDOVER
The handover ceremony was flagged off by Dr. Mrs. Angela Uwakwem, Hon. Commissioner for Health who represented the Executive Governor, His Excellency, Owelle Anayo Rochas Okorocha.
The ceremony had the following dignitaries in attendance: The Permanent secretary Ministry of Health, Dr. Irene Chima, Dr. Fredric Anofue, Chief Medical Director, Imo State University Teaching Hospital, Dr. Morris Ewuzie, Director Accident & Emergency Unit, Dr. Uduji, Chief Medical Director Imo State Specialist Hospital. His Royal Highness, Igwe Dogulas Okwara, Okwarachukwu of Umuna Acient Kingdom, His Royal Highness, Eze Okere, Eze Uzoubi of Umuna, His Royal Highness, Eze Uzoma, Ezeukwu1 of Owerre Ebiri.
The MTNF team was led by; Mr. Dennis Okoro, MTNF Director and Senior Manager, Program Implementation, Abasi-Ekong Udobang. 24 MTN Nigeria Foundation MTNF Scholarships The MTNF Scholarships are made up of the MTNF Science and Technology Scholarship Scheme (MTNF STSS) and the MTNF Scholarship Scheme for Blind Students (MTNF SSBS). Both Scholarships are currently in their 8th and 6th phase respectively.
Youth Under both scholarships, eligible 300 level students studying Science & Technology related courses and blind students studying in public tertiary institutions across Nigeria are awarded scholarships worth Empowerment N200,000.00 annually, till graduation.
Due to the long period of strike embarked upon by the Academic Cause Staff Union of Universities (ASUU) in 2017 and the strike by the Non-Academic Staff Union of Universities (NASU) which followed immediately, project timelines were negatively impacted, as verification of results of both existing and new awardees, as well as Aptitude Tests for STSS applicants were delayed.
On completion of the above mentioned activities, the Employability Workshop, Alumni Induction and Scholarship Award Ceremony held on September 3, 10, and 17, 201 in Abuja, Owerri and Lagos while the Alumni Induction and Scholarship Award Ceremony held on September 4, 11, and 18, 2018 in Abuja, Owerri and Lagos.
N200,000.00 annually, till graduation.Annual Report 2018 25 MTN Foundation Employability Workshop 2018
The employability workshop in 2018
was ICT oriented with strong emphasis Cross section of Awardees during the Award and Alumni on entrepreneurial and interview skills, induction ceremony in Lagos State Cross section of Awardees during the Award and Alumni and was in partnership with eco system induction ceremony in Imo State partners like KPMG, Oracle, Google, IBM and Digital Bridge Institute. MTNN HR department also played a key role in the course of the workshops, delivering value adding lectures at each of the locations.
At each location, 2 past awardees from both scholarship schemes participated in the forum deliberately tailored towards giving them the opportunity to inspire the new awardees, by sharing their stories and experiences while on the scheme and since graduation from school.
New graduates were also inducted into the alumni at each location by a member of the alumni. Training session for Alumni of the MTNF Scholarship Cross section of Awardees and Dignitaries during the Award and scheme (SSBS/STSS) during the Employability Alumni induction ceremony in Lagos State Workshop in Owerri, Imo State
26 MTN Nigeria Foundation The MTNF ICT and Business Skills Training initiative which falls under the MTNF Youth Empowerment Cause, aims to build capacity of Youths between the ages of 18 to 35 in ICT towards enhancing their employability and entrepreneurial ability. This illustrates MTNF’s commitment to supporting the Federal and State Government’s efforts at promoting sustainable socio- economic development in Nigeria.
The 2-day training involves the The training program involved delivery of ICT training modules for presentations made to participants the employed, business owners and as well as group tasks which required MTNF ICT potential entrepreneurs operating the participants proffer solutions at varied ICT skill levels. to specific socio-economic and environmental issues, leveraging and Business In 2018, in partnership with some of on ICT. Certificates were presented MTN Ecosystem partners (Oracle, to all participants at the end of the Google, KPMG, IBM and Digital programme. Skills Training Bridge Institute), MTN Foundation implemented 2 phases of the ICT and Business Skills initiative in Programme Oyo and Kano States respectively between June and November 2018. Thus, a total of 1,000 youth across the two (2) States have benefitted from this initiative.
Presentation of Certificate by the Minister for the training held in Ibadan, Oyo State
Annual Report 2018 27 Delegates at the training held in Ibadan, Oyo state Minister of Communications, Barrister Adebayo Shittu with MTNF Ecosystem Partners (KPMG, Oracle and DBI)
Cross section of delegates and MTNF Ecosystem partners at the training
Group work presentation by delegates at the training held in Ibadan, Oyo state
28 MTN Nigeria Foundation Cross section of delegates at the training held in Kano, Kano state
Delegates with the Minister of Communications, Barrister Adebayo Shittu Annual Report 2018 29 The Falakin of Kano addressing delegates at the training held in Kano, Kano State
Group work presentation Presentation by a delegate on use by delegates at the training of ICT to solve socio-economic held in Kano, Kano State challenges at the training held in Kano, Kano State
30 MTN Nigeria Foundation In 2018, the Foundation furthered its aim of facilitating the reawakening of the Arts in Nigeria Arts & through the sponsorship of more Arts & Culture initiatives across the Culture country. These included Theatre productions, Theatre festivals, and Cause a Visual Arts initiative. These initiatives in totality helped to tell positive stories of the rich Nigerian culture to a wider audience, and also served as a platform to build the capacity of skilled Nigerian youths across the entire Arts & Culture value chain.
Annual Report 2018 31 OVER Since POSITIVELY 330 IMPACTED 2006 YOUTHS
Under this initiative, the Foundation provides annual scholarships worth N250,000 to cover tuition, books, and transportation over a 2 year period, for eligible musically talented youth to study Music at the prestigious Musical Society of Nigeria (MUSON), and attain an internationally recognized Diploma in Music on graduation.
The In the course of each From inception in 2006 academic year, students till date, MTN through the and Alumni periodically get MUSON has helped impact MTNF-MUSON the opportunity to show positively the lives of over off their new or refined 330 youths, seeing them musical skills to friends, through school and giving Music Scholars family and invited guests them the opportunity to during 3 annual concerts; develop their natural and The Pre-Valentine Concert raw talents into a refined Programme (February), The Graduation product. Concert (July), and The Donors Appreciation Concert (December)
32 MTN Nigeria Foundation FELA and the Kalakuta Queens
No other initiative under the Foundation’s Arts & “Fela and The Kalakuta Queens” is about through arts and music; an attribute we the life of the legendary musical icon and all need to imbibe in the Nigeria of today. Culture Cause embodies activist Fela Anikulapo Kuti and his Wives the Foundation’s capacity and world renowned backup singers and In furtherance of the Foundation’s efforts dancers. to take theatre to a wider audience, the building efforts like this critically acclaimed production Fela and The production tells never been heard the Kalakuta Queens was staged in Abuja project. stories of their sensational lives, from Friday, June 8 to Sunday, June 10, unmasking common misconceptions 2018, following a successful run in Lagos. Fela and the Kalakuta Queens (April, June about them, taking us through key and October in Lagos and Abuja) moments of history in their storied lives. The play was also staged at the Afrika Shrine on Sunday, Oct 14, 2018 as part of Due to the overwhelming interest in the The story of Fela and his Kalakuta Queens activities to launch the 2018 Felabration Fela story evidenced by the success of is a compelling musical narrative of activities. Fela and the Kalakuta Queens which the honest and incomparable love and was staged in Lagos for the first time in connection Fela had with his dancers who Fela and The Kalakuta Queens was December & January 2017/2018, the play left their homes to follow him, believing in directed and produced by Bolanle Austen- was staged in Lagos in April, and in Abuja his vision of building a better community Peters Production (BAP) in June, 2018.
Annual Report 2018 33 Eko Theatre Nigerian Carnival Universities (Lagos, July) Theatre Arts Festival (Jos, June) The Nigerian Universities Theatre Arts Festival (NUTAF) is an annual festival of the Nigerian Universities Theatre Arts Students Association (NUTASA), the National body of all students studying theatre arts related courses in all The Eko Theatre Carnival was a week- universities across Nigeria. long celebration of Nigerian Arts & The theme of the festival was “Connecting Bridges”, and it was Culture. It kicked off on Sunday, July hosted by the Plateau State University, whose Theatre Arts 29, 2018 with an opening ceremony faculty is renowned. Over 20 universities participated in 2018. at Nike Art Gallery, Lekki, Lagos and ran till Sunday, August 5, 2018 across The festival ran from June 3 – 8, 2018, and was opened by the Executive Governor Plateau State, represented by the other venues in Lagos, most notably the Commissioner of Information. National Theatre and Freedom Park.
It was a weeklong event that brought together theatre arts The carnival featured seminars on different aspects students and practitioners from across the country together of the Arts & culture value chain, performances in one place to showcase their talents and celebrate the by various theatre groups highlighted by a visiting profession of performing Arts Israeli theatre troupe.
It featured a series of lectures, performances (Drama, The carnival was created by The Crown Troupe Dance, Spoken Word, Songs) etc. performed by participating of Africa, a dance-theatre company comprising universities. artists whose forte is the creation of new but socially relevant works. The troupe is famous for NUTAF was one of the Foundation’s strategic interventions in making multi-generic performances suitable for 2018 under the Arts and Culture Cause. diverse spaces, which are thematically relevant to address prevalent issues of concern.
34 MTN Nigeria Foundation The play takes the audience on a journey through the lives and the cultures of five legendary icons in Africa; Queen Amina of Zazau, Sango, Shaka Zulu, Nefertiti, Nana, through music and dance.
Legends the Musical, is told through exhilarating dance, beautiful musical compositions and profound poetry performances. This production is a blend of various modern and Cultural artistic expressions.
Legends was first staged in Lagos, from October 19 -21, 2018 as part of the 22nd Annual MUSON Music Festival.
Following the success of the first run of the play, it was staged over the Christmas
Image source: thenet.ng source: Image holidays at the MUSON Centre, Onikan, Lagos, from December 22-26, 2018.
Legends the Musical This edition was a bigger hit than its first showing in October. It was very well attended by theatre enthusiasts with (Lagos, October/December) every show sold out. As a direct result of the successes of the first and second shows staged, talks are ongoing to export the production to other Legends the Musical is a Using real life legends from across Africa, locales. the play tells the fictional story of Love, theatre production aimed at Faith, and Team work, and how through the It is worthy of mention that Ayo Ajayi, one Faith of one person, the identified Legends of the producers of Legends, is an Alumni celebrating African heroes came back to Africa to help fight a rising evil. of the MTNF-MUSON Music Scholars and cultures. program.
Annual Report 2018 35 Our Son the Minister (Lagos, November) Image source: guardian.ng source: Image
Our Son The Minister, tells the story of an individual who turned down the It is a comical, thought The play was produced by Beeta opportunity to be a Minister of his provoking political satire, Universal Arts Foundation, led by country, as he felt that he would not be with a strong social Bikiya Graham-Douglas, a leading focus and highlights an Nollywood actress with a strong able to maintain his integrity due to the individual’s conviction to background in theatre. amount of pressure from his family and be upright come what may. friends.
36 MTN Nigeria Foundation Life in My City Image source: Pulse.ng source: Image Art Festival (Enugu, October)
Life in my City is an annual visual arts festival targeted at youths from all over Africa where artwork is submitted online for review by a panel of judges.
Works by the shortlisted artists are then taken on a local tour of 9 states, covering 5 of the 6 geo-political zones in Nigeria, after which a jury of selected panelists further shortlists the best of the lot which is then exhibited in Galleries across Enugu. Made in Nigeria Poetry The festival closed in Enugu with a series of events which ran from Monday, October 22, 2018, and ended on Saturday, October 27, 2018. Show (Lagos, December)
The weeklong finale entailed activities like lectures, a The show is a spoken word by touching on various issues, music night, and a workshop for Children on Art, and theatre production designed and including the challenges of inter- exhibitions. produced by Dike Chukwumerije, tribal relationships, workplace one of Nigeria’s leading poets, ethics, teenage sexuality, and The Grand finale held at the International Conference with 8 published books. Pan-Africanism Centre, Institute of Management and Technology. The show uses poetry as a tool The Made in Nigeria Poetry Show It was attended by the Executive Governor of Enugu, for storytelling. It seamlessly was staged at the Agip Recital Hall, other cabinet members, the Obi of Onitsha, members incorporates music, dance and MUSON Centre, on December 14, of the Diplomatic community, and Art enthusiasts drama, to tell resonating stories 2018. from across the country. about Nigeria and Nigerians
Annual Report 2018 37 Oba Esugbayi (Lagos, December)
Oba Esugbayi is a historical play about the history of Lagos and one of the most recognised Oba’s of Lagos in “Oba Esugbayi”.
Oba Esugbayi refused to bow to the will of the Colonial Masters, and was instead a champion of the Girl Child, and Women’s rights. This is highlighted through the characters of notable civil rights activists like Margaret Ekpo and Olufunmilayo Ransom Kuti.
The play was staged at the Agip Recital Hall, MUSON Centre, and ran from Sunday, December 23 Tuesday, December 25, 2018.
Executive Governor of Lagos State, His Excellency, Akinwunmi Ambode and members of his cabinet were in attendance.
38 MTN Nigeria Foundation OTHER PROJECTS MTNF Community Development Project (Supporting communities with basic infrastructure)
Installed 650ft Solar Borehole @ Isale Kooko Community, Saki Local In furtherance of MTNF’s effort to continually Government Area, Oyo State contribute to the socio-economic development of communities in Nigeria through the provision of basic infrastructure, additional ten (10) communities benefitted the installation of 650ft solar powered boreholes in 2018. The solar powered boreholes have been completed and handed over to the communities for their use.
Installed 650ft Solar Borehole @ Umunkiri, Mgboko Oke- Ngwa Autonomous Community, The communities that benefitted from the Obingwa LGA, Abia State. solar borehole solution are listed below:
i. Isale Kooko Community, Saki Government Area, Katsina State Local Government Area, Oyo vii. Yusufari Town (Anguwan Arewa), Yusufari State Local Government Area, Yobe State ii. Egbin Community, Ijede Local viii. Comprehensive Secondary School, Council Development Area, Umunkiri, Mgboko Oke-Ngwa Ikorodu, Lagos State Autonomous Community, Obingwa Local iii. Pakata Roundabout, Ilorin, Government Area, Abia State Kwara State ix. Obiekwele Community, Ndokwa East iv. Barisulla Village, Kaiama Local Local Government Area, Delta State Government Area, Kwara State x. Nung Ikot-Ikot Udufiong, Oruk Anam v. Karambanin Lale, Near Local Government Area, Akwa Ibom State Installed 650ft Solar Borehole @ Muduru Danbatta Town, Kano State village, Mani LGA Katsina State vi. Muduru Village, Mani Local
Annual Report 2018 39 International Day of Persons with Disabilities (IDPWD)
Minister for Women Affairs and Social 2018 EDITION Development, Hajiya Aisha Abubakar speaking... MTNF in collaboration with the Federal Ministry of Women Affairs & Social Development Commemorated 2018 IDPWD MTNF Foundation continues to be a strategic partner to the Federal Ministry of Women Affairs and Social Development in advocating for social inclusion of Person with Disabilities (PWDs). This is being achieved by partnering with the Ministry annually to commemorate the International Day of Persons with Disabilities in addition to other MTNF initiatives targeted at Persons with Disabilities.
40 MTN Nigeria Foundation The 2018 edition with the theme “Disability: Breaking Down the Barriers”, emphasised the need for promoting social inclusiveness towards boosting productivity, socio-economic growth and overall quality of life for Persons with Disabilities (PWDs).
Presentation of Disability support materials by MTNF
Cross section of guests at the 2018 edition of IDPWD
MTNF Scholarship Alumni (Blind) Barrister Justice Chukwu
Minister for Women Mrs. Aisha P. Affairs and Social Sadauki, MTNF Development, Hajiya Director Aisha Abubakar
Deputy Chief of Mission, Israeli Embassy Nadav The commemorative event took place in Abuja, on Monday, 3rd December, 2018 with Goren (standing) presentations by stakeholders from the office of the Presidency and international community. There was also the presentation of disability support mobility aid & appliances by MTNF to the Ministry for distribution to PWDs. In addition, there was a call to all stakeholders to contribute to the social inclusion of PWDs. Annual Report 2018 41 Sustainability and Impact The Monitoring and Evaluation unit in 2018 conducted a number of evaluations geared towards ensuring the sustainability of the Assessment (Monitoring & projects and providing data for project planning, implementation and decision making. A total of 7 studies were conducted consisting of 6 Evaluation Unit) evaluations and 1 Baseline evaluation.
EVALUATION/IMPACT BASELINE PROJECT ASSESSMENT EVALUATION
Economic Empowerment
ICT and Business Skills Training for Youths, Oyo and Kano
Scholarship Scheme for Blind Students
Health
Emergency Ward Support Intervention
Yello Heart Initiative
Market Doctor Project
Inter – portfolio Projects
What Can We Do Together Initiative
42 MTN Nigeria Foundation Outcomes: Scholarship ICT and Business Skills Scheme for Training for Youths in Oyo Blind Students and Kano (Evaluation) (Evaluation) The ICT and Business Skills Training for Youth project participants in Kano State were interviewed. The MTNF Scholarship for the is aimed at empowering youths across Nigeria with Blind Students Scheme provides ICT and Business skills so they can start up their own Findings from the evaluations conducted academic scholarship annually businesses or utilized skills in enhancing their existing in Oyo and Kano States revealed that to eligible full-time Blind students businesses and careers. The two day workshop was participants had better understanding of the in accredited tertiary institutions delivered in collaboration with MTN Nigeria ecosystem topics taught than they did before the training. across the six geo-political zones in partners, Oracle, Digital Bridge Institute, IBM and The topic taught included Cloud computing, Nigeria. Google. A total of 500 persons were trained both in social media marketing, Technology of the Oyo and Kano states. future, Design Thinking and Tools for Business The M&E unit conducted an Promotion & Market Penetration. evaluation of the scheme. The aims An evaluation of the workshop was conducted by of the evaluation was to assess the Monitoring and Evaluation team. The aims of the Post Training short term impact assessment the impact of the scheme on life of evaluation are: conducted reveal that the percentage of beneficiaries. This study employed participants who were unemployed at the use of face to face Interviews using • Determine the knowledge of participants after the time of training (39%) reduced to 8% three a semi-structured questionnaire. training. months after the training. 58% of respondents 180 beneficiaries were selected in were of the opinion that the training had three states within Nigeria – Lagos, • Determine the knowledge of the beneficiaries on improved their decision making ability while Imo and Abuja, through a purposive the topics taught. 17% were able to create investment making sampling technique. Respondents opportunities for themselves. • Determine the short-term Impact of the training were pre-informed via phone and on beneficiaries after 3 months. interview appointments booked In terms of challenges, 47% of participants for convenience purposes. On complained of poor network connectivity The evaluation targeted youths between the ages of the spot assessment interviews in Kano. It was recommended that efforts 18 to 35 years. Pre and post evaluation questionnaires were conducted where such were should be made to provide better internet were administered to participants. For the workshop accommodated by the beneficiaries. connection during the training so as to in Oyo State, an impact assessment questionnaire improve the experience of the beneficiaries was administered online on participants of the The findings revealed that the and help them to better appreciate the digital training after 3 months. A total of 942 interviews were scheme relieved the financial message being passed across. conducted among participants in Oyo State while 657 burden of beneficiaries and that of their families who were struggling to
Annual Report 2018 43 support them in school. Through the scheme, beneficiaries were able to achieve their academic ambitions. Beneficiaries acknowledged that the scheme has been a life changing Yello Heart Campaign experience particularly the workshop and award ceremony which is a platform for networking and exposure to new (Evaluation) learning. Apart from being able to afford their learning and The Yello Heart campaign are aimed to create awareness of walking aids, all beneficiaries were able to afford the basic maternal health and child issues in Nigeria. The campaign things of life such as food, shelter and clothing throughout also aims to increase opportunities for partnerships and the duration of the scholarship. alliances for MTNF with global NGOs and professional The major challenge expressed by beneficiaries was organizations operating within the Mother & Child Health unemployment as only 10% were currently employed while (MCH) sector. An evaluation of the project was conducted 21% were pursuing post-graduate studies. by the M&E unit during the year. The study was conducted via the quantitative research approach using a divergence of techniques. Pregnant Women, married women, nursing mothers, beneficiary’s families, public health officials and hospital management participated in the study. A total of 1,385 respondents were interviewed. Emergency Ward Support Intervention, Phase 1 (Evaluation)
The Emergency Ward Support intervention is was employed amongst beneficiaries culled contributed to the reduction in the number aimed at building capability of emergency wards from a list of patients’ records in the hospital of deaths arising from emergencies. A major in public hospitals to respond to emergency and health workers within the emergency finding was poor level of awareness that the situations through the provision of state of the wards, the stratified random sampling method intervention was sponsored by MTN. art medical equipment and consumables. The was used for selecting respondents identified first phase of the intervention was evaluated as residents in the communities around the Beneficiaries were of the opinion that the by the M&E unit during the year. hospital. intervention could be enhanced by building the capacity of health workers through training The evaluation was conducted via face to The findings revealed the intervention and adequate maintenance of equipment. face Interviews using a semi- structured contributed to increase in patient’s population, questionnaire. Two hospitals each from Borno, provision of quality healthcare to the Adamawa and Yobe States participated in the community and upgraded the hospitals to survey. While systematic random sampling a higher standard. The intervention also
44 MTN Nigeria Foundation An experimental design featuring independent evaluations amongst test and control groups of respondents was The findings reveal the following: adopted.
The Test group refers to those who were OVER OVER direct beneficiaries/participants in the 19% MTNF MCH intervention programmes 76% 88% There was an namely; The Health Workshop, Health increase in number of awareness of beneficiaries attended the Forum, Town Storm and Health Walk. pregnant women who associated MTN with Health Workshops Health Walk visit hospitals post mother and child and participated in and Town The Control group, on the other hand, intervention describes respondents of similar profile health programme the health forum Storm chosen from same locations and neighbourhood where the interventions took place but who did not participate.
Net difference in the knowledge, 100% 90% 75% 83% attitudes, behaviour and preferences of the two groups yielded a direct measure of pregnant women of nursing mothers of nursing of married pregnant of the impact generated across the who participated in with their babies mothers have women now sleep target groups. the MTN ‘Yello Heart’ now sleep under adopted exclusive under insecticide campaign are willing insecticide treated breastfeeding treated nets Using a list of beneficiaries as a to deliver their babies nets sampling frame, the systematic random in the hospital sampling method was used to select respondents for the Test group. The random route walk method sufficed for respondent’s selection for the Control group in the absence of a similar data 93% 87% base. Either way, every member of the of married and pregnant of beneficiaries are study universe had an equal, calculable, women are willing now willing to adopt non-zero chance of being selected. to adopt exclusive family planning Importantly, the purposive sampling breastfeeding because of because of the technique where respondents were the information received benefits shared intentionally sought and interviewed through the health through the program was used for the remaining target workshops and forum groups namely: Beneficiaries’ families, Hospital management and Ministry of health officials.
Annual Report 2018 45 It was suggested by respondents that to improve the program: Market Doctor Project (Baseline Evaluation) There should be provision of more equipment to the hospitals The Market Doctor Project, under MTN’s Mother and Child cause, is targeted mainly at women and children, Provision of updates on new mother with the main objective of providing affordable and child health care initiatives healthcare to mothers and children with minimal distortion of their socio-economic activities. The Y’ello Provision of more maternity wards Market Doctor project involves health screening, health education and treatment of minor ailments, medical Regular monitoring of the project to advisory services and referral to secondary and tertiary ensure equipment and consumables health institutions in cases of critical medical issues. are delivered The first phase of the project kicked off on the 15th November, 2018 at 5 markets in Rivers and 4 markets in Lagos. Target beneficiaries were market women with shops/stalls within the selected markets. About 900 women/children were the Trainings and capacity building for target in each of the markets during the intervention. doctors to ensure service delivery is maintained Prior to the project, a baseline evaluation was conducted by the M&E unit. The study was conducted via face-to-face Interviews using a semi- structured questionnaire scripted in a tablet across nine markets in two states (five markets Adequate provision of Audrey packs in Rivers state and four markets in Lagos). 611 respondents were sampled and drugs which include shop owners and stalls operators through a systematic random sampling method.
46 MTN Nigeria Foundation What can we do Together Initiative,
The result revealed that majority of respondents wait for more Phase 2 (Evaluation) than a day before hospital visit. The reasons for the delay include: Seeking alternative means of treatment, distance to The ‘What Can We Do Together Initiative, phase 2, is a health facility, discouraged due to crowd at the hospital and multi-sectoral project. 4 project types were deployed to 200 lack of money. communities with the aim of improving the socio-economic and health status of members of beneficiary communities. A significant number of respondents had never had a medical The projects deployed were: Transformers, Boreholes, checkup and those that had were not doing it regularly. School Furniture and Primary Health Centre. Reasons adduced for not having a medical checkup included the fact that they were not sick, it is expensive, don’t have The M&E unit undertook an assessment of the initiative. the time and don’t see the need to do so. The most common A total of 1,450 interviews were conducted amongst ailments in the market community were malaria and typhoid beneficiaries of the different projects in July 2018. Data while the top medical needs as expressed by respondents collection was via Face to Face Interview technique using were treatment for malaria and availability of drugs. semi- structured questionnaire scripted on mobile electronic devices (Tablets) amongst residents of the communities The baseline confirms the relevance of project to be who are past and current beneficiaries of the projects. implemented. A significant percentage of respondents have never had any health check-up and those that did were not Coverage: Six states, one per geo-political zone and 5 doing it regularly. Perceived high cost adduced by many beneficiary communities of the MTNF WCWDT per state. respondent as a major reason for not having a regular medical Modified Random sampling was employed amongst checkup. Malaria is the most common ailment respondents beneficiaries. complained about and its treatment a top priority need. For communities that benefitted from boreholes, respondents were of the opinion that their quality of life has improved particularly as a result of improved access to drinkable water which has helped reduce the incidence of disease outbreak such as Cholera.
Annual Report 2018 47 For communities that benefitted from Transformer installations, respondents were of the opinion that the project has improved livelihood of the community and improved power supply for household convenience. The project impacted such business activities such as Laundry services, Frozen food sales, Barbing Salons, Welding etc. Due to more stable power output, residents are able to store food properly, save cost of buying fuel for generator and conduct business activities in a more conducive environment.
For schools who benefitted from school furniture, respondents were of the opinion that the project has made learning more convenient by providing an enabling environment for learning
For communities that benefitted from Primary Health Care Centres, respondents testify to the fact that there is an improvement in health status medical equipment and consumables provided.
There were some challenges largely bordering on maintenance of equipment for borehole, transformers and school furniture while inadequate medical personnel was a major challenge with the Primary Health Care Centres.
Respondents suggested that maintenance of projects should be given more priority as well as partnering with community leaders and provision of adequate medical personnel.
48 MTN Nigeria Foundation The Management Team
ABASI-EKONG JOSEPH UDOBANG AKPATA
Senior Manager, Manager, Economic Program Empowerment Implementation Portfolio
EDWARD VICTOR ORIE FAGBOHUN ONONOGBU
Manager, Manager, Sustainability & Health Portfolio Impact Reporting (June 2014 to July 2018)
PAMELA PETER EMODI NWAEKE NONNY UGBOMA Manager, Manager, Executive Secretary Education Health Portfolio Portfolio (From August 2018)
Annual Report 2018 49 MTNF Projects · What Can We Do Together, Phase 3 · MTNF DNA Lab – Request for Additional Funds Approved for · Sponsorship of the Nigeria Universities Theatre Art Festivals · MTNF Community Development Projects 2018 · MTNF Arts and Culture Cause Phase 3: Theatre Productions · MTNF Arts and Culture Cause Phase 3: Theatre for Schools
· MTNF MUSON Scholars Program
· MTNF Easy Health Access Project
· MTNF Anti-Substance Abuse Program During the year, the · Monitoring & Evaluation Plan 2018 – 2019 following projects were approved by the Board · MTNF ICT and Business Skills Training Phase 2 (Kano) of directors: · MTNF Orphanage Support Initiative · MTNF Arts & Culture Cause Phase 4: Theatre Productions & Visual Arts
· MTNF Community Development Initiative
· Part Sponsorship of International Day for Persons with Disabilities (IDPWD)
· Funds for MTNF Projects Leveraging
50 MTN Nigeria Foundation Legal And Administrative Information
Board of Directors: Date of Appointment Registered Office:
Prince Julius Adelusi-Adeluyi, OFR Chairman January 27, 2005 4, Aromire Street, Ikoyi, Lagos
Mr. Dennis Okoro Member January 27, 2005 Auditors: Alhaji Muhammadu Danlami Member January 27, 2005 PriceWaterhouseCoopers Mrs. Aishatu P. Sadauki, OON Member January 27, 2005 252E, Muri Okunola Street, Mrs. Mosun Belo-Olusoga Member September 3, 2015 Victoria Island, Lagos
Hon. Reginald Chukwuemeka Okeya Member September 3, 2015 Legal Advisers: Mr. Tobechukwu Okigbo Member September 17, 2017 Aluko & Oyebode
35, Moloney Street, Lagos
Bankers: Patrons: Executive Secretary: Guaranty Trust Bank PLC HRM Igwe Nnaemeka Achebe, CFR Ms. Nonny Ugboma 56A, Adeola Odeku Street, Dr. Christopher Kolade, CON Company Secretary: Victoria Island, Lagos Mr. Felix Ohiwerei, OFR Mrs. Uto Ukpanah
Annual Report 2018 51 Corporate The MTN Nigeria Foundation Limited by Guarantee resolves Governance to conduct itself in accordance with good business and moral ethics, and best practices, in all of its exchanges in Structure respect of its numerous stakeholders.
Functions of the Board The Project Appraisal Committee is responsible for the appraisal and recommendation of viable and beneficial The major decision-making body of the MTN projects to the Board for consideration. The Committee Foundation is the Board of Directors which also ensures the sustainability and effective monitoring is guided by a charter which defines its of on-going projects. aims, roles and powers. These Directors are required and expected to conduct themselves The Audit Committee assists the Board in carrying appropriately and professionally, thereby out its responsibility of safeguarding the assets of the upholding the core values of integrity and Foundation in preparing the financial statements. The leadership with due regard to their fiduciary committee also ensures that effective controls are duties and responsibilities. maintained in the financial and operational processes of the Foundation. In addition, the Foundation engages As part of its governance structure, the Board the services of the firm of PricewaterhouseCoopers as currently has two committees constituted: external auditors.
Project and Partner Selection
The MTN Foundation often works in tandem with public and private organisations that are able to bring relevant knowledge and experience to the table, to execute sustainable projects in any of the three specific routes through which the Foundation purposes to make positive changes in the lives of people. The Foundation remains steadfast in ensuring that the mode of partner selection and project approval remains transparent, systematic, efficient, and effective while promoting its mission and its objectives. To achieve this, pre-approved guidelines are strictly followed in the projects and partner organisations selection process.
52 MTNMTN Nigeria Nigeria Foundation Foundation Pre-requisites for Project Selection Pre-requisites for Partner Selection Monitoring and Evaluation (M&E)
For projects to be selected and funded by For Partner organisations to be The Monitoring and Evaluation Unit of the MTNF, they must satisfy the following: selected to collaborate with MTNF, Foundation plays a major role in the efficient they must satisfy the following: and effective execution of projects, with its • Be aligned to the Foundation’s main functions centred on the monitoring, key focus areas. • Be an incorporated entity in tracking and evaluation of the Foundation’s • Be subject to MTN’s requirement operation for at least 2 years. corporate social investments. for baseline studies or • Have a proven record of assessments including successfully implementing The Foundation has had the support of an information that supports a need projects. M&E consultant in the development and for the project. • Demonstrate technical establishment of an efficient Monitoring and • Be replicable in all 6 geo-political expertise in the focus area of Evaluation System that helps determine zones of the country namely; the project. the outcome and impact of its projects on North-West, North-East, South- • Show evidence of adequate a national scale. However, as projects and West, South-South, South-East, manpower and a reputable project locations increase, it has become North-Central. Board and management necessary to employ two M&E Consultants to • Solely “non for profit”, i.e. have no profile. carry out scheduled monitoring and evaluation commercial intentions. • Have a functional financial exercises nation-wide. • Purely for CSR objectives. system and audited financial • Be sustainable for a foreseeable statement. All projects are monitored and evaluated and future. • Have adequate geographical the data collated are analysed and used in • Have a board community impact, presence in relation to the making informed decisions about the various both direct and indirect. roll out plan of the proposed projects. • Not be for the construction project. or development of physical Benefits realised from the Foundations M&E infrastructure that would exercises include: not constitute part of MTN • Assessing the impact of the project Foundation projects. on the beneficiaries and or the • Be for beneficiaries within beneficiary institution. Nigeria. • To provide justification for funding the next phase of a project. • Data often confirms the need for the project and provides indications on the gap to be filled.
Annual Report 2018 53 Financial Statements DECEMBER, 31 2018
54 MTN Nigeria Foundation Independent Auditor’s Report To the Members of MTN Nigeria Foundation Limited by Guarantee
Report on the audit of the financial statements Independence
Our opinion We are independent of the company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional In our opinion, MTN Foundation Limited by Guarantee’s (“the company’s”) Accountants (IESBA Code). We have fulfilled our other ethical financial statements give a true and fair view of the financial position of responsibilities in accordance with the IESBA Code. the company as at 31 December 2018, and of its financial performance and its cash flows for the year then ended in accordance with International Other information Financial Reporting Standards and the requirements of the Companies and Allied Matters Act and the Financial Reporting Council of Nigeria Act. The directors are responsible for the other information. The other information comprises the Directors Report, Statement of Directors’ What we have audited Responsibilities and Five Year Financial Summary but does not include the financial statements and our auditor’s report thereon. MTN Foundation Limited by Guarantee’s financial statements comprise: Our opinion on the financial statements does not cover the other • the statement of financial position as at 31 December 2018; information and we do not express any form of assurance conclusion • the statement of comprehensive income for the year then ended; thereon. • the statement of changes in funds for the year then ended; • the statement of cash flows for the year then ended; and In connection with our audit of the financial statements, our responsibility • the notes to the financial statements, which include a summary of is to read the other information identified above and, in doing so, consider significant accounting policies. whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears Basis for opinion to be materially misstated.
We conducted our audit in accordance with International Standards on If, based on the work we have performed on the other information that we Auditing (ISAs). Our responsibilities under those standards are further obtained prior to the date of this auditor’s report, we conclude that there described in the Auditor’s responsibilities for the audit of the financial is a material misstatement of this other information, we are required to statements section of our report. report that fact. We have nothing to report in this regard.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Annual Report 2018 55 Responsibilities of the directors and those charged As part of an audit in accordance with ISAs, we exercise We communicate with those charged with governance with governance of the financial statements professional judgment and maintain professional regarding, among other matters, the planned scope skepticism throughout the audit. We also: and timing of the audit and significant audit findings, The directors are responsible for the preparation including any significant deficiencies in internal of the financial statements that give a true and fair • Identify and assess the risks of material control that we identify during our audit. view in accordance with the International Financial misstatement of the financial statements, whether Reporting Standards and the requirements of the due to fraud or error, design and perform audit Report on other legal and regulatory requirements Companies and Allied Matters Act and for such internal procedures responsive to those risks, and obtain control as the directors determine is necessary to audit evidence that is sufficient and appropriate The Companies and Allied Matters Act requires that in enable the preparation of financial statements that to provide a basis for our opinion. The risk of not carrying out our audit we consider and report to you are free from material misstatement, whether due to detecting a material misstatement resulting from on the following matters. We confirm that: fraud or error. fraud higher than for one resulting from error, as fraud may involve collusion, forgery, intentional i) We have obtained all the information and In preparing the financial statements, the directors omissions, misrepresentations, or the override of explanations which to the best of our internal control. are responsible for assessing the company’s ability to knowledge and belief were necessary for the • Obtain an understanding of internal control continue as a going concern, disclosing, as applicable, purposes of our audit. relevant to the audit in order to design audit matters related to going concern and using the going procedures that are appropriate in the concern basis of accounting unless the directors ii) The company has kept proper books circumstances, but not for the purpose of of account, so far as appears from our either intend to liquidate the company or to cease expressing an opinion on the effectiveness of the operations, or have no realistic alternative but to do examination of those books and returns company’s internal control. adequate for our audit have been received so. • Evaluate the appropriateness of accounting from branches not visited by us. policies used and the reasonableness of Those charged with governance are responsible accounting estimates and related disclosures iii) The company’s statement of financial for overseeing the company’s financial reporting made by the directors. position and statement of comprehensive process. • Conclude on the appropriateness of the directors’ income are in agreement with the books of use of the going concern basis of accounting and, account. Auditor’s responsibilities for the audit of the based on the audit evidence obtained, whether a financial statements material uncertainty exists related to events or conditions that may cast significant doubt on the For: PricewaterhouseCoopers Our objectives are to obtain reasonable assurance company’s ability to continue as a going concern. Chartered Accountants about whether the financial statements as a whole If we conclude that a material uncertainty exists, Lagos, Nigeria are free from material misstatement, whether due we are required to draw attention in our auditor’s to fraud or error, and to issue an auditor’s report report to the related disclosures in the financial that includes our opinion. Reasonable assurance statements or, if such disclosures are inadequate, is a high level of assurance, but is not a guarantee to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of that an audit conducted in accordance with ISAs will Engagement Partner: Udochi Muogilim always detect a material misstatement when it exists. our auditor’s report. However, future events or Misstatements can arise from fraud or error and are conditions may cause the company to cease to FRC/2013/ICAN/000000003209 considered material if, individually or in the aggregate, continue as a going concern. they could reasonably be expected to influence the • Evaluate the overall presentation, structure and economic decisions of users taken on the basis of content of the financial statements, including the disclosures, and whether the financial statements these financial statements. represent the underlying transactions and events in a manner that achieves fair presentation.
14 June 2019 56 MTN Nigeria Foundation Statement of Comprehensive Income For the year ended 31 December 2018
Receipts Notes 2018 2017 N N
Donations 8 887,989,000 887,989,000
Expenditure Cost of activities in furtherance of Foundation’s Objectives: - Health (316,525,000) (136,902,000) - Economic empowerment (60,299,000) (154,507,000) - Education (506,485,000) (231,769,000) - Community sponsorship (104,030,000) (359,934,000) - Donation to orphanages (50,112,000) (52,126,000) - Other operating expenses 9 (368,135,000) (450,753,000)
Total Expenditure (1,405,586,000) 1,385,991,000 Finance income 10 438,072,000 512,906,000
(Deficit)/ surplus of income over expenditure (167,514,000) 14,904,000
Total comprehensive income for the year (167,514,000) 14,904,000
The accounting policies on pages 61 - 63 and the accompanying notes on pages 64 to 70 are an integral part of these financial statements.
Annual Report 2018 57 Statement of Financial Position For the year ended 31 December 2018
ASSETS 2018 2017 N N Current assets Prepayments 11 53,006,000 145,841,000 Investment securities 12 3,122,763,000 2,156,658,000 Cash and cash equivalents 13 532,055,000 1,412,214,000
Total assets 3,707,824,000 3,714,713,000
FUNDS AND LIABILITIES Funds 3,606,173,000 3,591,269,000 (Deficit)/ surplus of income over expenditure (167,514,000) 14,904,000 3,438,659,000 3,606,173,000 Current liabilities Trade and other payables 14 269,165,000 108,540,000 Provisions - - 108,539,000 108,539,000
Total funds and liabilities 3,707,824,000 3,714,713,000 The financial statements on pages 57 to 72, were approved by the Board of Directors on 28 March 2019 and signed on behalf of the Board of Directors by: Prince Julius Adelusi-Adeluyi, OFR // Chairman of the Board of Directors (FRC/2013/NBA/00000004555) Tobechukwu Okigbo // Director (FRC/2019/NBA/00000019355) The accounting policies on pages 61 - 63 and the accompanying notes on pages 64 to 70 are an integral part of these financial statements.
58 MTN Nigeria Foundation Statement of Cashflows For the year ended 31 December 2018
Receipts Notes 2017 2017 N N
Cash flow from operating activities: Cash used in operations 15 (414,314,000) (809,455,000) Interest received 500,261,000 480,674,000
Cash generated from operations 85,947,000 (328,781,000)
Cashflows from investment activities Receipt from matured treasury bills 2,133,278,000 1,794,535,000 Purchase of treasury bills (3,099,384,000) (2,104,645,000) Cash generated from/(used in) investing activities (966,106,000) (310,110,000)
Net increase/(decrease) in cash and cash equivalents (880,159,000) (638,891,000) Cash and cash equivalents at the beginning of the year 1,412,214,000 2,051,105,000
Cash and cash equivalents at the end of the year 13 532,055,000 1,412,214,000
The accounting policies on pages 61 - 63 and the accompanying notes on pages 64 to 70 are an integral part of these financial statements.
Annual Report 2018 59 Statement of Changes in Funds For the year ended 31 December 2018
Total funds N
Balance at 1 January 2017 3,591,269,000 Surplus for the year 14,904,000
Balance at 31 December 2017 3,606,173,000
Balance at 1 January 2018 3,606,173,000 Deficit for the year (167,514,000)
Balance at 31 December 2018 3,438,659,000
The accounting policies on pages 61 - 63 and the accompanying notes on pages 64 to 70 are an integral part of these financial statements.
60 MTN Nigeria Foundation Summary of Significant Accounting Policies For the year ended 31 December 2018
1 General information 3. Going concern
MTN Nigeria Communications Limited has been at the forefront of the mobile The directors have a reasonable expectation that the Foundation has adequate telephone revolution in Nigeria since its inception in 2001. With success comes the resources to continue in operational existence for the foreseeable future. The responsibility of giving back to the society in a meaningful and sustainable way, Foundation therefore continues to adopt the going concern basis in preparing the tempered by care for the environment and concern for people - both now and in financial statements. the future. 4. Significant accounting policies The MTN Nigeria Foundation Limited by Guarantee (MTNF Ltd/Gte) has therefore been established for the purpose of focusing MTN Nigeria’s efforts in terms of The significant accounting policies applied in the preparation of the IFRS financial its Corporate Social Responsibility initiatives to help reduce poverty and foster statements are set out below. The policies applied are consistent with those sustainable development in Nigeria. adopted in the prior year unless otherwise stated.
In September 2004, MTN Nigeria Communications Limited consulted with a diverse 4.1. Foreign currency translation group of stakeholders across the country to ascertain the needs of the Nigerian people. The findings of this rich consultative process enabled the development of 4.1.1. Functional and presentation currency a more focused strategy that targets three key areas of need, namely Education, Health and Economic Empowerment. The functional and presentation currency items included in the financial statements are measured using the currency of the primary economic environment in which the It is against this background that the MTN Nigeria Communications Limited Board entity operates (the functional currency). The financial statements are presented in resolved to make available up to 1% of its profit after tax annually to MTNF Ltd/Gte, Naira, which is also the functional currency of the Foundation. which was duly incorporated in Nigeria in July 2004. The Foundation’s programme of activities is supported by MTN Nigeria Communications Limited. 4.1.2. Transactions and balances
The address of the Foundation’s registered office is 4, Aromire street, Ikoyi, Lagos. Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Monetary assets and liabilities 2. Basis of preparation denominated in foreign currencies are translated at the rates of exchange ruling at the reporting date. Foreign exchange gains and losses resulting from the settlement The financial statements have been prepared in accordance with International of such transactions and from the translation at the reporting date exchange rates Financial Reporting Standards (IFRS), as issued by the International Accounting of monetary assets and liabilities denominated in foreign currencies are recognised Standards Board (IASB), interpretations issued by the IFRS Interpretations in profit or loss. Committee (IFRIC) applicable to companies reporting under IFRS and with the requirements of the Companies and Allied Matters Act of Nigeria, Cap C20 LFN 2004 (CAMA). The financial statements have been prepared under the historical cost basis. 4.2. Finance income
Amounts are rounded to the nearest thousand, except where stated otherwise Finance income comprises income on funds invested and is recognised as it
Annual Report 2018 61 accrues in the statement of comprehensive income, using the effective interest rate • The financial asset is held within a business model with the objective to hold method. financial assets in order to collect contractual cash flows and;
4.3. Revenue recognition • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount Donations are recognised as revenue when it is probable that the economic benefits outstanding. This assessment is referred to as the SPPI test and is performed at associated with the transaction will flow to the Foundation and the amount can be an instrument level. measured reliably. Financial assets at amortised cost are subsequently measured using the effective 4.4. Expenditure interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. Expenditure is accounted for on an accrual basis and is classified under headings that aggregate all costs of similar nature. The Foundation’s financial assets at amortised cost includes donations receivable, interest receivable, current investments, cash and cash equivalents. Current 4.5. Advance payments investments comprise of interest bearing debt instruments held with the Federal Government of Nigeria held for less than 365 days. Cash and cash equivalents Advance payments are recognised at cost which is the payments made in advance of comprise cash in hand, in current accounts, which is a non-interest bearing demand obtaining rights of access to goods or receipts of service. Subsequent measurement deposit, Naira deposits held on call and other highly liquid investments with original is based on cost less amortisation in the period. maturities of three months or less.
4.6. Financial instruments Derecognition
A financial instrument is any contract that gives rise to a financial asset of one A financial asset is derecognised (i.e. removed from the Foundation’s statement of entity and a financial liability or equity instrument of another entity. Financial assets financial position) when: and financial liabilities are recognised on the Foundation’s statement of financial position when the Foundation becomes a party to the contractual provisions of the • The rights to receive cash flows from the asset have expired or; instrument. All other instruments not classified as financial are classified as non- financial instruments. • The Foundation has transferred substantially all of the risks and rewards of the asset (a) Financial assets (b) Financial liabilities Financial assets are classified into the following category: Initial recognition and measurement • Financial assets at amortised cost Financial liabilities comprise other payables (excluding provisions). Financial The classification of financial assets at initial recognition depends on the financial liabilities are initially measured at fair value, net of transaction costs incurred and are asset’s contractual cash flow characteristics and the Foundation’s business model subsequently measured at amortised cost using the effective interest method. for managing them. The Foundation’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The Financial instruments (continued) Derecognition business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial liabilities are derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced Financial assets at amortised cost by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is The Foundation measures financial assets at amortised cost if both of the following treated as the derecognition of the original liability and the recognition of a new conditions are met: liability. The difference in the respective carrying amounts is recognised in the statement of comprehensive income.
62 MTN Nigeria Foundation 2.7. Impairment of assets 2.9. Contingent liabilities
2.7.1. Financial assets Contingent liabilities represent possible obligations that arise from past events whose existence will be confirmed only by the occurence or non-occurence of uncertain The Foundation recognises an allowance for expected credit losses (ECLs) for all future events not wholly within control of the Foundation. debt instruments not held at fair value through profit or loss. ECL is the difference between the contractual cash flows due in accordance with the contract and all the 5. Critical accounting judgements, estimates and assumptions cash flows that the Foundation expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows The Foundation makes judgements, estimates and assumptions concerning the from the sale of collateral held or other credit enhancements that are integral to the future when preparing its financial statements. Actual results may differ from these contractual terms. estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates The Foundation considers a financial asset in default when contractual payments are revised and in any future periods affected. are 180 days past due. However, in certain cases, the Foundation may also consider a financial asset to be in default when internal or external information indicates The judgements, estimates and assumptions that have a significant risk of causing a that the Foundation is unlikely to receive the outstanding contractual amounts in material adjustment to the carrying amounts of assets and liabilities within the next full before taking into account any credit enhancements held by the Foundation. A financial year are discussed below. financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. The “Critical accounting judgements, estimates and assumptions” note should be read in conjuction with the “other significant accounting policies” disclosed in note The Foundation’s debt instruments at amortised cost comprise solely of Federal 4.7.1 Government Treasury Bills that are graded in the non-investment category (B+) by the Fitch Rating Agency, but are considered a low credit risk investments, as the risk 5.1 Impairment on current investments of default is low. The Foundation uses the ratings from the Fitch Rating Agency both to determine whether the debt instrument has significantly increased in credit risk The Foundation applies the general approach to estimate impairment of the current and to estimate ECLs. investments measured at amortised cost. This area requires the use of inputs and assumptions on the credit rating of the issuer and significant assumptions about 2.7.2. Non financial assets future economic conditions and credit behaviour (e.g. the likelihood of customers defaulting and the resulting losses). (Note 4.7.1) The carrying amounts of the Foundation’s non financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such 6. Changes in accounting policy indication exists, then the asset’s recoverable amount is estimated. An impairment loss is recognised in statement of comprehensive income for the amount by which the The financial statements have been prepared in accordance with International asset’s carrying amount exceeds the estimated recoverable amount. The recoverable Financial Reporting Standards on a basis consistent with the prior year except for the amount of an asset is the greater of its value in use and its fair value less costs to sell. adoption of the following new standards. The Foundation has adopted the following new accounting pronouncements as issued by the IASB, which were effective for the 2.8. Provisions Foundation from 1 January 2018:
Provisions are recognised when there is a present legal or constructive obligation as • IFRS 9 Financial Instruments (IFRS 9). a result of a past event for which it is more likely than not that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the • IFRS 15 Revenue from Contracts with Customers (IFRS 15). amount of the obligation. Provisions are not recognised for future operating losses. The changes in accounting policies were applied retrospectively; however, the Provisions are measured at the present value of the expected outflow of resources Foundation has elected not to restate comparative information. The Foundation’s required to settle the obligation discounted using a pre-tax discount rate that reflects assessment of the impact of these new standards and interpretations is set out below. current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as a finance cost.
Annual Report 2018 63 Notes to the Financial Statements For the year ended 31 December 2018 1 Application of IFRS 9 Financial Instruments IFRS 9 Financial Instruments addresses the classification, measurement and de-recognition of financial assets and financial liabilities, and introduces new rules for hedge accounting and a new impairment model for financial assets. It replaces the guidance in IAS 39 that relates to the classification and measurement of financial instruments.
The Foundation has applied the new rules retrospectively from 1 January 2018. Comparative for 2017 have not be restated. 2 Classification and measurement The new standard has no significant impact on the Foundation as the measurement of its financial assets are all currently measured at amortised cost. For the classification, the classes of assets will change from held to maturity to amortised cost: Financial assets classification - 1 January 2018 FVTPL FVOCI Amortised Total cost Donations N N N N Reclassified from Treasury bills held to maturity - - 2,156,658,000 2,156,658,000
Financial assets classification as originally presented - 31 December 2017 Loans and Fair value through Available for Held to Total receivables profit or loss sale Maturity Donations N N N N N Treasury bills held to maturity - - - 2,156,658,000 2,156,658,000
There is no impact on the Foundation’s accounting for financial liabilities, as the new requirements only affect financial liabilities that are designated at fair value through profit or loss and the Foundation does not have such liabilities. The derecognition rules have been transferred from IAS 39 Financial Instruments: Recognition and Measurement and have not been changed. 3 Impairment of financial assets The new impairment model requires the recognition of impairment provisions based on expected credit losses (‘ECL’) which considers more forward-looking information in establishing a provision for impairment which would affect current investments.
Current investments are all liquid assets that consist of marketable securities. The Foundation places priority on the issuer’s very high creditworthiness and the present yield/interest rates offered. In this assessment, the Foundation also considers the credit risk assessment of the issuer by the rating agencies such as Fitch.
64 MTN Nigeria Foundation Notes to the Financial Statements (cont’d)
The Federal Government (FGN) has the least credit risk known in the country and in a possibility of default, the country could provide by borrowing from international sources to pay off its local debt. In line with the Foundation’s risk policy, its investments in treasury bills have no historical rate of default and the investments can be liquidated and sold at the prevalent market rates at that point in time. The international rating for the FGN is B, a speculative grade, for its Short-Term Local-Currency Issuer Default Rating (IDR), which is a stable rating for the issuer’s credit rating. 6 Changes in accounting policy (continued) ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Foundation expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. The difference resulted in an immaterial impairment on current investments Application of IFRS 15 Revenue from contracts with customers The IASB has issued a new standard for the recognition of revenue. This will replace IAS 18 which covers contracts for goods and services and IAS 11 which covers construction contracts. The new standard introduces a five-step model approach, which is based on the principle that revenue is recognised when control of goods or services transfers to a customer.
The standard applies to an entity whose counterparty to the contract is a customer. A customer is a party that has contracted with an entity to obtain goods or services that are an output of the entity’s ordinary activities in exchange for consideration. The Foundation has no customers as it provides services to others with no consideration exchanged.
IFRS 15 discloses that revenue from transactions or events that does not arise from a contract with a customer is not in the scope of the revenue standard and should continue to be recognised in accordance with other standards. Such transactions include, but are not limited to dividends, non-exchange transactions, such as donations or contributions.
All donations are presented as receipts in the financial statements, and are received from MTN Nigeria. Thus, the new revenue standard is not applicable to the activities of the Foundation. 7 New Standards and Interpretations 7.1 Standards and interpretations effective and adopted in the current year In the current year, the Foundation has adopted the following standards and interpretations that are effective for the current financial year and that are relevant to its operations: • IFRS 9 Financial Instruments (See Note 6) • IFRS 15 Revenue from contracts (See Note 6) 7.2 Standards and interpretations not yet effective The Foundation has chosen not to early adopt the following standards and interpretations, which have been published and are mandatory for the Foundation’s accounting periods beginning on or after 1 January, 2019 or later periods: IFRS 16 Leases IFRS 16 was issued in January 2016. It will result in almost all leases being recognised on the statement of financial position by lessees, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognised. Practical expedients are available for short-term and low-value leases. Lessors continue to classify leases as operating or finance, with IFRS 16’s approach to lessor accounting substantially unchanged from its predecessor, IAS 17 Leases.
The effective date of the standard is for years beginning on or after 1 January, 2019. As at the reporting date, the Foundation has no lease commitments, which could be classified as operating, or finance lease obligations, therefore, no impact is expected on the financial statements of the Foundation from the new lease standard.
Annual Report 2018 65 Notes to the Financial Statements (cont’d)
2018 2017 N N 8 Donations Donations from MTN Nigeria 887,989,000 887,989,000
MTN Nigeria makes donation of up to 1% of profit after tax of the preceding financial year. In 2018, MTN Nigeria transferred the sum of N800.00 million (December 2017: N887.99 million) relating to donations from the profit of the financial year ended 31 December 2017. 9 Other operating expenses The following items have been included in arriving at (deficit)/surplus of income over expenditure: Professional expenses 21,990,000 27,240,000 Audit fees 3,835,000 3,340,000 Public relations and communication expenses 278,901,000 343,663,000 Directors’ remuneration 55,438,000 61,452,000 Provisions 7,971,000 15,058,000 368,135,000 450,753,000 10 Finance Income Interest on short term bank deposits 91,891,000 128,784,000 Interest on amortised cost investments 346,181,000 384,122,000 438,072,000 512,906,000 Finance income represents interest received on amortised cost investments, fixed deposits, call deposits and current accounts. 11 Advance payments and other receivables Advance payments 106,796,000 130,690,000 Loss allowance for impairment (55,834,000) (55,835,000) 50,962,000 145,840,000 12 Current investments Treasury bills at amortised cost 3,122,763,000 2,156,658,000 3,122,763,000 2,156,658,000 The treasury bills have discount rates ranging from 12% to 14.45%. 13 Cash and cash equivalents Short-term deposits 436,297,000 1,250,000,000 Cash at bank 95,758,000 162,214,000 532,055,000 1,412,214,000 The Foundation’s exposure to liquidity risk related to cash and cash equivalents is disclosed in note 18.5.
66 MTN Nigeria Foundation Notes to the Financial Statements (cont’d)
2018 2017 14 Other payables N N Accruals 223,926,000 98,422,000 Intercompany payables- MTN Nigeria 31,240,000 7,244,000 Witholding tax payables 13,999,000 2,874,000 269,165,000 108,540,000 The Foundation’s exposure to liquidity risk related to other payables is disclosed in note 18.5. 15 Cash generated from operating activities (Deficit)/surplus of income over expenditure (167,514,000) (14,904,000) Adjustments for: Finance income (512,906,000) (512,906,000) Decrease in provisions - (4,500,000) Changes in working capital: Decrease/(increase) in advance payments and other receivables 23,894,000 (49,319,000) Decrease/(increase) in donations receivable 6,752,000 (6,752,000) Increase/(decrease) in trade and other payables 160,626,000 (250,882,000) Cash generated from operations (414,314,000) (809,455,000) 16 Contingent Liabilities The Foundation has N2.1 billion (2017: N2.1 billion) contingent liability arising from a litigation in the ordinary course of business and the Foundation is defending this action. This matter is currently being considered by a court and the timing of thejudgement is unknown. In the opinion of the directors, which is based on advice from the legal counsel, no material loss is expected to arise from this litigation. 17 Commitments The commitments as at the balance sheet date are as follows: Approved and contracted with project partners 1,771,732,000 1,872,023,000 Approved but not contracted with project partners 1,117,520,000 1,709,921,000 2,889,252,000 3,581,944,000 Approved commitments represent amounts authorised for projects by the Project appraisal committtee and the Board of Directors. 18 Financial instruments and risk management 18.1 Introduction Financial assets and financial liabilities are recognised on the Foundation’s statement of financial position when the Foundation becomes a party to the contractual provisions of the instrument. The Foundation classifies its financial instruments into the following categories depending on the purpose for which the financial instruments were acquired:
· Financial assets: Financial assets at amortised cost · Financial liabilities: Financial liabilities at amortised cost Financial instruments comprise cash and cash equivalents, interest receivables, current investments, accruals and intercompany payables.
Annual Report 2018 67 Notes to the Financial Statements (cont’d)
18 Financial instruments and risk management (continued) 18.1 Introduction The Foundation has exposure to the following risks from its use of financial instruments: credit risk, liquidity risk and market risk. This note presents information about the Foundation’s exposure to each of the above risks, the Foundation’s objectives, policies and processes for measuring and managing risk. Further quantitative disclosures are included throughout these financial statements. 18.2 Risk profile The Foundation’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Foundation.
The carrying value of financial instruments materially approximate their fair values.
Accounting classes and fair values ASSETS LIABILITIES 31 December 2018 Amortised cost Total carrying amount Financial assets N N Interest receivable 2,044,000 2,044,000 Cash and cash equivalents 532,055,000 532,055,000 Current Investments 3,122,763,000 3,122,763,000 3,656,862,000 3,656,862,000 Financial liabilities Intercompany payables - MTN Nigeria 31,240,000 31,240,000 Accruals 223,926,000 223,926,000
255,166,000 255,166,000 31 December 2017 Loans & Receivables Held to Maturity Amortised cost Total carrying amount Financial assets N N N N Interest receivable 64,233,000 - - 64,233,000 Donations receivable 6,752,000 - - 6,752,000 Cash and cash equivalents 1,412,214,000 - - 1,412,214,000 Current Investments - 2,156,658,000 - 2,156,658,000 1,483,199,000 2,156,658,000 - 3,639,857,000 Financial liabilities Intercompany payables - MTN Nigeria - - 7,244,000 7,244,000 Accruals - - 98,421,000 98,421,000 - - 105,665,000 105,665,000
68 MTN Nigeria Foundation Notes to the Financial Statements (cont’d)
18.3 Credit risk Credit risk, or the risk of financial loss to the Foundation due to counterparties not meeting their contractual obligations is managed through the credit approvals, limits and monitoring procedures. The Foundation’s maximum exposure to credit risk is represented by the carrying amount of the financial assets that are exposed to credit risk. The following instruments give rise to credit risk: 31 December 2018 31 December 2017 N N Donations receivable - 6,752,000 Interest receivable 2,044,000 64,233,000 Current Investments 3,122,763,000 2,156,658,000 Cash and cash equivalents 532,055,000 1,412,214,000 3,656,862,000 3,639,857,000 None of the financial assets is past due or impaired and payments have been received regularly and on time historically. Interest receivables, cash and cash equivalents and investment securities The Foundation’s exposure and the credit rating of its counterparty is continuously monitored, reviewed and approved by management. The aggregate values of investment portfolio is spread amongst approved financial institutions with ratings within the range of A and BBB. Given these credit ratings, management does not expect any counterparty to fail to meet its obligations. 18.4 Market risk Market risk is the risk that changes in market prices (interest rate) will affect the Foundation’s income or the value of its holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. 18.4.1 Interest rate risk Interest rate risk is the risk that the cashflow or fair value of an interest bearing financial instrument will fluctuate because of changes in market interest rates. The Foundation adopts a policy of ensuring that its investments are regularly monitored and the aggregate values of investment portfolio is spread amongst approved financial institutions licensed to invest in government securities with fixed interest rates. Interest rates for financial assets are fixed. Profile At the reporting date, the interest rate profile of the Foundation’s interest bearing financial instruments is as follows: 31 December 2018 31 December 2017 Fixed rate Non interest Fixed rate Non interest instruments bearing instruments bearing Financial assets N N N N Cash and cash equivalents - 532,055,000 - 1,412,214 ,000 Current Investments 3,122,763,000 - 2,156,658,000 - 3,122,763,000 532,055,000 2,156,658 ,000 1,412,214 ,000 18.6 Liquidity risk Liquidity risk is the risk that an entity will be unable to meet its obligations as they become due. The Foundation’s approach to managing liquidity risk is to ensure that sufficient liquidity is available to meet its liabilities when due under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Foundation’s reputation.
Annual Report 2018 69 Notes to the Financial Statements (cont’d)
18 Financial instruments and risk management (continued)
The Foundation ensures it has sufficient cash on demand (currently the Foundation is maintaining a positive cash position) to meet expected operational expenses, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.
The following are the contractual cash flows of financial liabilities:
Current Liabilities More than 1 month but not Carrying amount exceeding 3 months 31 December 2018 N N Intercompany payables - MTN Nigeria 31,240,000 31,240,000 Accruals 223,926,000 223,926,000 255,166,000 255,166,000
The following are the contractual cash flows of financial liabilities:
Current Liabilities More than 1 month but not Carrying amount exceeding 3 months 31 December 2017 N N Intercompany payables - MTN Nigeria 7,244,000 7,244,000 Accruals 98,421,000 98,421,000 105,665,000 105,665,000 19 Related party transactions Related party transactions constitute the transfer of resources, services or obligations between the Foundation and a party related to the Foundation, regardless of whether a price is charged. December December 2018 2017 N N Intercompany payables - MTN Nigeria 31,240,000 7,244,000
The amount above represents payments made by MTN Nigeria on behalf of MTN Foundation for Directors and Project team travel and accommodation costs, board and committee meetings entertainment expenses.
Donations receivable - 6,752,000
There were no outstanding balances receivable from MTN Nigeria as at the year end.
70 MTN Nigeria Foundation Other requirements - Local legislation For the year ended 31 December 2018
Key management compensation: 2018 2017 The remuneration paid to the directors of the Foundation are as follows: N N Fees (Non-executive directors) 7,763,000 7,912,000 Other emoluments (Non-executive directors) 47,675,000 53,540,000 Total 55,438,000 61,452,000
Other emoluments comprises directors’ sitting allowance, travel and accommodation expenses borne on behalf of the directors and board entertainment expenses.
Fees and other emoluments disclosed above include amount paid to The chairman 3,678,000 3,136,000 Highest paid director 5,841,000 5,191,000
Gifts in kind The following resources were provided by MTN Nigeria Communications Limited in the year: Staff costs 190,657,000 147,016,000 Facilities costs Office space, Utilities 22,543,000 16,839,000 Administrative Expenses Travel 838,000 2,551,000 Professional fees 10,484,000 11,900,000 Others expenses 1,541,000 802,000 Training 624,000 880,000 226,687,000 179,988,000 Gifts in kind are not recognised in the financial statements of the Foundation.
Annual Report 2018 71 Five Year Financial Summary For the year ended 31 December 2018
December December December December December 2018 2017 2016 2015 2014 N N N N N Assets employed: Current assets 3,707,824,000 3,714,713,000 3,955,190,000 6,309,369,000 5,975,817,000
Current liabilities 269,165,000 108,540,000 363,921,000 481,599,000 147,532,000
Net assets 3,438,659,000 3,606,173,000 3,591,269,000 5,827,770,000 5,828,285,000
Funds 3,606,173,000 3,591,269,000 5,827,770,000 5,828,285,000 5,007,792,000 (Deficit)/surplus of income over expenditure (167,514,000) 14,904,000 (2,236,501,000) (515,000) 820,493,000 Total funds 3,438,659,000 3,606,173,000 3,591,269,000 5,827,770,000 5,828,285,000
Receipts 800,000,000 887,989,000 3,948,000 1,688,820,000 2,481,342,000
Expenditure (1,405,586,000) (1,385,991,000) (2,591,021,000) (2,410,261,000) (2,160,413,000) Finance income 438,072,000 512,906,000 350,572,000 720,926,000 499,564,000 (Deficit)/surplus of income over expenditure (167,514,000) 14,904,000 (2,236,501,000) (515,000) 820,493,000
Earnings/(loss) per share - This is not applicable to the Foundation as it has no shares.
Net assets per share - This is not applicable to the Foundation as it has no shares.
72 MTN Nigeria Foundation MTNF Projects Approved for 2018 with Map Showing Spread across the Country
Annual Report 2018 73 MTN Nigeria Foundation Ltd/Gte Mitee Network Limited — 0803 302 4380
74 MTN Nigeria Foundation