The shares of MTN Nigeria Communications Plc dropped by 1.57 per cent to close at N125 on Thursday following the announcement of the board restructuring of the company.

MTN had announced the retirement of its Chairman, Pascal Dozie, and five other directors from the board of the company, effective September 2, 2019.

The company also named a former Chief Executive Officer, Nigerian Communications Commission, Ernest Ndukwe, as its chairman-designate, saying the restructuring was in line with the code of corporate governance.

The company’s incoming CEO, Mr Ferdinand Moolman; and Independent Non-Executive Directors – Mr Michael Ajukwu,   Mr Muhammad Ahmad, and Mr Rhidwaan Gasant – were also announced.

However, stakeholders in the capital market and telecoms industry said changes made to the board were crucial to the growth of the company.

The President, Association of Telecommunications Operators of Nigeria, Olusola Teniola, described the retirement of Dozie and other directors in the telecom company as a good move, considering the regulatory challenges the company faced recently.

Teniola said, “For MTN, it is a good move. The changing environment and regulatory issues surrounding the company call for new hands at this time that the interests of shareholders need to be protected.”