1Annual Report 2013
MTN Nigeria Foundation Ltd/Gte
...a Strong Foundation Built on
Partnerships
A n n u a l R e p o r t 2 0 1 3
2 MTN Nigeria Foundation
MTN Nigeria Foundation remains committed to improving both the lives of individuals and the well-being of communities, by Partnering on selected social investment projects. These projects consider and respect people’s dignity; nurture inherent abilities and help create economic value in the communities.
3Annual Report 2013
MTN Nigeria Foundation Annual Report 2013
Mission and Vision Statement
MTNF Nigeria Foundation – A Profile
Legal and Administrative Information
Corporate Governance Structure
The Chairman’s Statement
The Board of Directors – a photo profile
Director’s Report
A Detailed Report from our Executive Secretary
The Management Team
MTNF Projects approved for 2013
Report of the Independent Auditor
Statement of Comprehensive Income
Statement of Financial Position
Statement of Cash Flows
Statement of Changes in Funds
Summary of Principal Accounting Policies
Notes to the Financial Statement
Other Requirements - Local Legislation
Other Financial Information
Map Showing Spread of MTN Foundation Projects in 2013
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4 MTN Nigeria Foundation
At MTNF we appreciate how critical our partners are to our vision of improving the quality of life in communities across Nigeria. We welcome the skills and expertise our partners add to our various projects, helping us fulfill our commitments in a timely and effective manner.
Partnerships
5Annual Report 2013
To date, the MTN Foundation has over 338 project sites and 36 project categories spread
accross 36 states of the country and the Federal Capital Territory.
Our Mission is to improve the quality of life in the areas of Health, Education, and Economic Empowerment on a sustainable basis. Our objectives are:
Alleviation of health challenges currently facing the country Provision of access to educational opportunities
Facilitation of economic empowerment of Nigerian citizens
standards for other organisations in the area of Corporate Social Responsibility (CSR), whilst projecting the MTN Nigeria brand in a positive manner. Also important is ensuring relevance to individual lives and communities. MTN Nigeria provides funding for the numerous Corporate Social Investments executed by the Foundation, and has done so consistently for the past eight years. A voluntary contribution of 1% of Profit after Tax, continues to make possible the initiation and implementation of all Foundation projects.
MTN Foundation, is the vehicle for MTN Nigeria’s Corporate Social Investments (CSI), giving expression to a key and strategic goal of the company: to contribute to the development of the communities within which we operate. This goal in turn underscores the MTN Foundation’s mission to improve the quality of life in communities all over Nigeria. Similarly, a common thread that runs through our work at the Foundation is ensuring that we remain the reference point for the execution of measurable and successful social investment initiatives, that we set
The MTN Foundation through the MTNF
EyeRis project, has joined the war to stop
the spread of visual disabilities such as
blindness, which affects millions of people
globally. Our goal is to curb the incidence
of preventable blindness in Nigeria.
Our Vision is to be a leader in the area of Corporate Social Investment initiatives in Nigeria measured by the impact and sustainability of our projects in our host communities.
6 MTN Nigeria Foundation
we do, and we do it...
WhatWhy
Our intention at MTN Foundation is to harness that innate power of partnerships
to drive sustainable, positive and measurable impact. As such we will continue to
work with government at all levels, civil society and other institutions to enrich the
lives of individuals and communities around Nigeria.
“
“
Partnerships
7Annual Report 2013
and information garnered from these groups formed the basis of a 3-pronged strategy
formulated to help alleviate poverty and grow sustainable development in Nigeria, This is
played out in the 3 key areas of Education, Health and Economic Empowerment.
Against this background and armed with a map of these key areas, the MTN Nigeria
Communications Limited Board resolved to make available up to 1% of its profit after tax
annually to The MTN Nigeria Foundation Limited, which was duly incorporated in July 2004.
The Foundation’s program of activities is supported wholly by MTNN.
From the start, MTNF was created with its purpose clearly defined and rooted in MTNN’s
inherent concern for its communities, and in MTNN’s vision for a cohesive and diligent
entity through which it can contribute positively to the lives of people, through strategies
designed on purpose and within context.
MTNF resolutely develops, pursues and executes these strategies and plans in collaboration
with local and international partner organisations, and remains committed to improving
individual and communal lives through social investment projects that nurture people’s
inherent abilities, care for and respect peoples dignity and help create economic value in
their lives. The Foundation has been able to produce an overall positive impact on society,
as evidenced in the numerous awards it has received over the years.
MTN Nigeria Communications Limited (MTNN) has been at the forefront of the mobile
telephone revolution in Nigeria since its inception in 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 Ltd/Gte) was borne out of
the desire for MTN Nigeria Communications Limited (MTNN), to focus its efforts in terms of
its Corporate Social Responsibility initiatives to help reduce poverty and foster sustainable
development in Nigeria. By so doing, it seeks to have a long term positive bearing on the
communities within which it operates, creating specific structures which ensure that its
empowerment and intervention initiatives can be replicated nation-wide.
In September 2004, MTNN sought the thinking of varied groups of stakeholders and
was able to access valuable facts about the plight of people and communities. The data
All MTN Foundation activities are based on a 3-pronged strategy
formulated to contribute to sustainable development
in Nigeria. These are in the 3 key areas of Education, Health and
Economic Empowerment.
Education
Health
Economic Empowerment
8 MTN Nigeria Foundation
Our Legal and Administrative Information
Board of Directors Date of Appointment
Chairman: Director: Director: Director: Director: Director: Director: Director:
Amb. Hamzat Ahmadu, CON (Walin Sokoto) 27th January 2005Prince Julius Adelusi-Adeluyi, OFR 27th January 2005Alh.Mohammadu Danlami 27th January 2005Dr Wingle Essumai 27th January 2005Mr. Dennis Okoro 27th January 2005Mrs. Aishatu Sadauki, OON 27th January 2005Mr. Andrew Bing* 27th January 2005Mr. Akinwale Goodluck 11th December 2008 * South African
PatronsHRM Igwe Nnaemeka Achebe, CFRDr Christopher Kolade, CONMr. Felix Ohiwerei, OFR
Executive Secretary Ms. Nonny Ugboma
Company Secretary Mrs. Uto Ukpanah
Registered Office 4, Aromire Street, Ikoyi, Lagos.
Auditors PricewaterhouseCoopers 252E, Muri Okunola Street, Victoria Island, Lagos
Legal Advisers Aluko & Oyebode 35, Moloney Street, Lagos
BankersGuaranty Trust Bank Plc. 56A, Adeola Odeku Street, Victoria Island, Lagos.
9Annual Report 2013
At MTNF, we strive to create opportunities that help people unlock their talent and potential.
Partnerships
9Annual Report 2013
10 MTN Nigeria Foundation
The MTN Nigeria Foundation Limited by Guarantee resolves to conduct itself in accordance with good business
and moral ethics, and best practices, in all of its exchanges in respect of its numerous stakeholders.
Functions of the Board
The major decision-making body of the MTN Foundation is the Board of Directors which is guided by a charter
which defines its aims, roles and powers. These Directors are required and expected to conduct themselves
appropriately and professionally, thereby upholding the core values of integrity and leadership with due regard
to their fiduciary duties and responsibilities.
Corporate Governance
Structure
10 MTN Nigeria Foundation
11Annual Report 2013
As part of its governance structure, the Board currently has two committees
constituted:
The Project Appraisal Committee is responsible for the appraisal and recommendation of
viable and beneficial projects to the Board for consideration. The Committee also ensures the
sustainability and effective monitoring of on-going projects. The Audit Committee assists
the Board in carrying out its responsibility of safeguarding the assets of the Foundation
in preparing the financial statements. The committee also ensures that effective controls
are maintained in the financial and operational processes of the Foundation. In addition,
the Foundation engages the services of the firm of PricewaterhouseCoopers as external
auditors.
Project and Partner Selection
The MTN Foundation often works in tandem with public and private organisations, who
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.
Pre-requisites for Project Selection
For projects to be selected and funded by MTNF, they must satisfy the following:
Be aligned to the Foundation’s key focus areas
Be subject to MTN’s requirement for baseline studies or assessments
including information that supports a need for the project
Replicable in all 6 geo-political zones of the country namely North-West, North-East,
South-West, South-South, South-East, North-Central
Solely “non for profit”, i.e. have no commercial intentions but be purely
for CSR objectives
Must be sustainable for a foreseeable future
Must have a board community impact, both direct and indirect
Must not be for the construction or development of physical infrastructure that would
not constitute part of MTN Foundation projects and
Must be for beneficiaries within Nigeria
Pre-requisites for Partner Selection
For Partner organisations to be selected to collaborate with MTNF, they must satisfy the
following:
Must be an incorporated entity in operation for at least 2 years
Must have a proven record of successfully implementing projects
Must demonstrate technical expertise in the focus area of the project
Must show evidence of adequate manpower and a reputable Board and
management profile
Must have a functional financial system and audited financial statement; and
Must have adequate geographical presence in relation to the roll out plan of the
proposed project
Monitoring and Evaluation (M&E)
The Monitoring and Evaluation Unit of the Foundation plays a major role in the efficient and
effective execution of projects, with its main functions centred on the monitoring, tracking
and evaluation of the Foundation’s corporate social investments.
The Foundation has had the support of an M&E consultant in the development and
establishment of an efficient Monitoring and Evaluation System that helps determine the
outcome and impact of its projects on a national scale. However, as projects and project
locations increase, it has become necessary to employ two M&E Consultants to carry out
scheduled monitoring and evaluation exercises nation-wide.
All projects are monitored and evaluated and the data collated are analysed and used in
making informed decisions about the various projects.
Benefits realised from the Foundations M&E exercises include
Assessing the impact of the project on the beneficiaries and or the
beneficiary institution
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
12 MTN Nigeria Foundation 12 MTN Nigeria Foundation
The positive impact of our social and community initiatives is a result of collective effort. We recognise that partnerships are not only good but they are absolutely vital to our continued success.
The Chairman’s Statement
PartnershipsAmb. Hamzat Ahmadu, CON (Walin Sokoto)
12 MTN Nigeria Foundation
13Annual Report 2013
We expect, not without basis, that this project will also make easier, the teaching and learning of the key science subjects, physics, chemistry and biology, participatory and enjoyable for our children. The project was delivered on schedule thanks to the efforts of our implementing Partners O&M Nigeria Ltd and Deux Project.
Under the Economic Empower Portfolio, the second set of 46 beneficiaries graduated from the MTN Foundation Skills Acquisition Project in partnership with the Friends of the Disabled (FOTD). The project aims to empower people with physical disability by training them on various vocational skills from tailoring and fashion design to welding and fabrication, shoe making and leather works, among others.
The graduation is a triumph for all stakeholders because promising Nigerians have been empowered to offer services and generate income, thereby making a real difference in their lives, families and communities.
At the MTN Foundation, we believe in the power of ripple effect, and as such, every graduate stands to influence tens, hundreds and even thousands of people.
These activities represent only a small portion of our operations in 2013.
We remain passionate about improving the quality of life in Nigeria and contributing to overall socio-economic growth and development. As such, we will invariably continue to explore new ways to expand the scope and depth of our unique model of CSR and to address real needs in society. We will continue to work with government, civil society and other institutions to enrich the lives of people in communities around Nigeria. We understand that it is the power of Partnerships that enables us achieve all that we do.
MTNF has not only made gigantic strides since its inception in 2005, we are equally confident that the organization is marching ahead - each year being more eventful than the previous one.
We will continue to walk with and work with our partners to empower communities across the country.
Dear MTNF Stakeholder,
In 2013, we again fulfilled the promise we made to Nigerians when the MTN Foundation commenced operations in 2005: which is to improve the quality of life in our communities.
This annual report thus reveals yet another chapter of unmatched success in the field of socio- economic development in Nigeria.
The broad spectrum of activities and their success rate speak volumes about the dedicated work taken up by the Foundation in 2013. As we move ahead of another milestone, it gives me great pleasure to share with you some of our experiences, challenges and achievements in the preceding year.
We continued to play the role of a catalyst in mobilizing and empowering people across our communities particularly through the key areas of Health, Education and Economic Empowerment. In Health, the Foundation partnered with the Eye Foundation Centre for the Prevention of Blindness in a bid to curb the incidence of preventable blindness in Nigeria. Under the first phase of the project called MTNF Eyesight Restoration Intervention Scheme 33,364 participants were screened for cataracts and other eye diseases; 10,610 cataract surgeries were conducted; and over 11,946 reading glasses and 10,808 drug packs were distributed free of charge to patients for treatment of allergies/infections in six states across the six geo-political zones.
This intervention is particularly significant when one considers the fact that 80% of blindness is preventable and a majority of sufferers do not have access to proper treatment nor the right facilities.
In Education, 22 full-fledged top of the range science laboratories were commissioned in six states across the six geo-political zones of Nigeria under the MTNF Science and Technology Laboratory project. This project headlines our commitment to contribute to the national effort to give Nigeria a solid foundation in science and technology thus enhancing the country’s capacity in this crucial area.
We are constantly expanding the scope and depth of our unique model of CSR, adding true value to the society by addressing real needs.
14 MTN Nigeria Foundation
Health 11. MTNF Orphanage Support Initiative12. MTNF EyeRIS Restoration Intervention Scheme13. MTNF Sickle Cell Project, Phase 514. Yello Doctor Mobile Medical Intervention Project (Additional Fund)
DonationsMTNF orphanage DonationsAn analysis of the funds approved and committed to the various portfolios and projects this year can be found on page 47 of this report.
Conclusion
I take this opportunity to thank our implementing partners – Friends of the Disabled (FOTD), Anglo-Nigeria Welfare Association for the Blind, Alibert Furniture, AGDC , O&M Nigeria Lmited, Deux Project, Eye Foundation, ILP and Maardec, Elizade Nigeria Limited, Music Society of Nigeria and Nigeria Association of Nephrology- for sharing our collective dream and contributing their precious time and thoughts towards its realization.
I would also like to thank the members of Board of the MTNF for their guidance and support over the years and our team of staff for their commitment and hard work.
In addition, it gives me great pleasure to report that the hard work and the values of transparency and accountability of the organization have been recognized at a national level. Some of the awards conferred on the foundation in 2013 include: 3rd CSR Nigeria Industry Award: Innovative Partnership Award for Outstanding Work in Corporate Social Responsibility and Creating “Shared Value”; Advertising Association of Nigeria (ADVAN) Awards: Best Corporate Social Responsibility Company and Sickle Cell Foundation of Nigeria: Special Appreciation Award in recognition of MTNF work and Support for Sickle Cell Foundation of Nigeria
Wherever I go across the country and see the investments we are making, I am humbled by the commitment of the MTN Foundation family – whether staff, management or partners. It is through their efforts that we are able to touch and transform the lives of millions. I thank each one for their passion, their drive and their can-do attitude that has brought us thus far.
It is with great pleasure that I present the eighth Annual Report of the MTN Foundation for the year ending December 31, 2013
Amb. Hamzat Ahmadu, CON (Walin Sokoto)
Chairman
Here are some brief highlights of our operations as recorded in the report:
Financial ReportThe statement of financial activities for the period is set out on pages 48 to 72 of this report. The following is an overview of the financial activities of the Foundation.
DonationsIn upholding its commitment to the Foundation, MTNN continues to donate 1% of its profit after tax to fund the Foundations projects. This came to a total of N2,108,087,000.00 in the year under review, with all donations subject to the approval of the Board of MTN Foundation.
In addition to the above cash donations, MTNN supported the Foundation in kind by providing services and other benefits valued at N159, 885, 000.00 in the following areas:
Staff cost
Provision of office space and furniture
General expenses such as travel and professional fees.
Investment policy and returnsAt the Foundation, our approach to financial matters is to be good custodians of the various donations received and thus maximize the use for the greater good. Donations are therefore invested in short term deposits pending utilization of these funds for designated projects. Interest earned during the year was N404, 504, 000.00
ProjectsThe Foundation continues to implement feasible and sustainable social programmes that are beneficial to the Nigerian society. During the year, the following projects were approved by the Board of directors:
Economic Empowerment 1. MTNF Security Support Project, Phase 12. Disability Support Project, Phase 43. Skills Acquisition for People with Disability, Phase 24. MTNF Scholarship Scheme for Blind Students, Phase 25. Community Sponsorship Project, Phase 4Education6. MTNF Learning Facility Supply phase 37. MTNF Restructured SchoolsConnect Project (Additional Fund)8. MTNF-MUSON Scholars Program, Year 6 &79. MTNF Learning Support Material Initiative Phase 610. MTNF Science and Technology Scholarship Scheme, Phase 4
15Annual Report 2013
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Amb. Hamzat Ahmadu, CON (Walin Sokoto)
Prince Julius Adelusi-Adeluyi, OFR
Mrs. Aishatu Sadauki, OON
Mr. Akinwale Goodluck
Alh. Mohammadu Danlami
Dr. Wingle Essumai
Mr. Dennis Okoro
Mr. Andrew Bing
14 3 2
5 6 7 8
The Board of Directors
15Annual Report 2013
16 MTN Nigeria Foundation
The Directors present their report together with the audited financial statements for the year ended 31 December, 2013.Operating ResultsThe following is a summary of the MTN Nigeria Foundation Limited by Guarantee (the “Foundation”) operating results and total funds:
December 2013 N,000Funds as at beginning of year 5,100,720Surplus of expenditure over income for the year (92,928)Total funds as at end of year 5,007,792
The address of the Foundation’s registered office is 4, Aromire street, Ikoyi, Lagos.
Principal ActivitiesThe Foundation was incorporated in Nigeria as a company limited by guarantee on 19 July, 2004 under the Companies and Allied Matters Act.
MTN Nigeria Foundation Limited by Guarantee is a non-profit making organisation actively engaged in corporate social responsibility initiatives. To this end, the Foundation seeks to implement viable and beneficial projects across the country in the selected focus areas of Health, Education and Economic Empowerment.
Operations ReviewThe Foundation received a total donation of N2.1 billion (December 2012: N2.3 billion) for the year.
Directors and Their InterestsThe Foundation directors have nil interest in contract/projects. The directors who served during the year were as follows: Amb. Hamzat Ahmadu, CON (Walin Sokoto) ChairmanPrince Julius Adelusi-Adeluyi, OFR DirectorAlh.Mohammadu Danlami DirectorDr Wingle Essumai DirectorMr. Dennis Okoro DirectorMrs. Aishatu Sadauki, OON DirectorMr. Andrew Bing* DirectorMr. Akinwale Goodluck Director
* South African
Directors’ Report
16 MTN Nigeria Foundation
For the year ended 31 December 2013
17Annual Report 2013
Directors’ ResponsibilitiesIn accordance with the provisions of the Companies and Allied Matters Act, the Directors are responsible for the preparation of annual financial statements, which fairly presents the state of affairs of the Foundation and of the surplus for the financial year.
The Directors’ responsibilities include ensuring that:
a) appropriate internal controls are established both to safeguard the assets of the Foundation and to prevent and detect material fraud and other material irregularities;b) the Foundation keeps accounting records which disclose with reasonable accuracy the financial position of the Foundation and which ensure that the financial statements comply with the requirements of the Companies and Allied Matters Act and the requirement of Financial Reporting Council of Nigeria Act.c) the Foundation has used suitable accounting policies, consistently applied and supported by reasonable and prudent judgements and estimates, and that all applicable accounting standards have been followed; andd) it is appropriate for the financial statements to be prepared on a going concern basis.
DonationsCorporate social responsibility projects in the Health, Education and Economic Empowerment portfolios during the year ended 31 December 2013 were funded through donations of N2.1b (2012: N2.3b). MTN Nigeria Communications Limited (MTN Nigeria) is committed to making available up to 1% of its Profit After Tax to the Foundation. All donations are received from MTN Nigeria.
No donation was made by the Foundation to any political organisation.
TaxationThe Foundation is exempt from tax due to the fact that it is a non-profit making organisation.
Gifts In KindIn addition to the donations mentioned above, MTN Nigeria made certain resources available to the Foundation. Details of these are given in Note 14.2 of the Financial Statements.
Employment of Physically Challenged PersonsThis does not apply as MTN Nigeria Foundation does not have employees.
Health, Safety at Work and Welfare of EmployeesThis does not apply as MTN Nigeria Foundation does not have employees.
Employee Involvement and TrainingThis does not apply as MTN Nigeria Foundation does not have employees.
AuditorsThe Auditors, PricewaterhouseCoopers,will continue in office in accordance with Section 357(2) of the Companies and Allied Matters Act.
By order of the board
Uto UkpanahCompany Secretary Lagos, Nigeria
FRCN/2014/NBA/00000005748
MTN Nigeria Foundation Ltd/Gte
17Annual Report 2013
18 MTN Nigeria Foundation
Nonny Ugboma - Executive Secretary
Executive SecretaryA Detailed Report from our
18 MTN Nigeria Foundation
Partnerships
In 2013, the Foundation was able to expand its capacity for creating greater awareness for its projects. We set out to Integrate ICT features into the implementation and leveraging of MTNF’s new & existing projects as well as align MTNF activities with MTNN’s Geo-Marketing efforts, to create enhanced stakeholder engagement. These objectives were achieved, as evidenced by the roll out of the various corporate social investments. These are as follows:
In collaboration with MTN Geo-Marketing, USSD messages and SMS blasts were
sent out to raise awareness of the following projects:
MTNF Eyesight Restoration Intervention Scheme (EyeRIS) project in Osun, Niger,
Delta, Abia, Sokoto and Jigawa States
MTNF Community Health Screening (CHS) in Anambra, Imo, Benue, Ekiti,
Calabar, Lagos
World Malaria Day on 25th April, 2013
Science Lab commissioning in Abia, Abuja, Edo, Katsina,
Scholarship Award ceremonies in Abuja, Imo and Lagos
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Software applications were developed to capture beneficiary bio-data and relevant
information under the following projects:
MTNF EyeRIS
MTNF CHS
MTNF Disability Support Project (DSP) phase 4 verification notification
nationwide
Widow Empowerment Scheme verification and selection of beneficiaries
New media platforms such as Facebook, Twitter and YouTube were also used for
the dissemination of content and project information on the following initiatives:
MTNF Science & Technology Laboratory Project
MTNF Science & Technology Scholarship Scheme
MTNF Scholarship Scheme for the Blind.
MTNF Sickle Cell Project
MTNF Disability Support Project
MTNF Medical Support Project (Mammography/ Haemodialysis)
MTNF MUSON Scholars Project
MTNF EyeRIS Project
In addition Facebook closed-user groups were launched for MTNF MUSON Scholars
Project and MTNF Science & Technology Scholarship Scheme to enable beneficiaries
share ideas and learnings with each other
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20 MTN Nigeria Foundation
The Foundation actively collaborated with the various
business units to roll out projects across the country.
The Government and Community Relations (GCR)
unit team oversaw the implementation of several
community-based projects such as the installation of
boreholes and transformers, and the supply of school
furniture. The Foundation continues to rely on the GCR
officers across the country for monitoring of projects
and issues resolution at various project sites.
20 MTN Nigeria Foundation
Top: Furniture being assembled at Ngodo Girls Junior School, Ngodo Isuochi, Abia State.
Left: Borehole with 25ft tank at University of Ado-Ekiti (UNAD), Ekiti State.
Centre: The 6 distribution channels from the borehole at UNAD, Ekiti State.
Right: 500kva transformer installed at Ijero community in Ekiti State.
Partnerships
21Annual Report 2013
The Corporate Affairs unit was instrumental, in line
with their core responsibilities, to the leveraging of all
MTNF initiatives during the year using multiple media
platforms. This has led to wide recognition of MTN’s
Corporate Social Investment drive across the country
by different stakeholders.
The Geo-Marketing unit was equally on hand to
provide intelligence and targeted SMS messages
to communities where projects were being rolled
out across the country to raise local awareness and
encourage participation. The Sales & Distribution and
Customer Relations teams were also available at all
Foundation commissioning events to conduct SIM
registration and provide assistance to MTN subscribers
in attendance. A member of the HR Medical unit
accompanied the M & E team to India to conduct
an assessment of the hospitals where a majority of
beneficiaries requiring medical interventions are
referred.
An appraisal of all existing projects using the
Foundation’s Cost-effectiveness, Relevance, Impact,
Visibility and Marketability (CRIVM) model revealed
that sixteen out of twenty-one existing projects
are achieving their set objectives and have met the
acceptable 60% threshold. The newly implemented
MTNF EyeRIS project with 85% had the highest score.
The EyeRIS project is an ocular health intervention in
response to Nigeria’s low vision and high blindness
prevalence rate which in most cases can be ascribed to
Cataracts. It was implemented by the Eye Foundation
Centre for the Prevention of Blindness, a reputable
indigenous organisation and ophthalmological service
provider. A record number of 33,364 participants from
six geo-political zones across the country benefitted
from the scheme. Out of this number, 10,610 patients
nationwide benefitted from free cataract surgeries while
11,946 reading glasses and 10,808 drug packs were also
distributed to patients for treatment of allergies and
other eye infections. The project was such a success
that it received an endorsement from the Ministry of
Health as well as strong participation by the relevant
state governors.
1. The Executive Governor of Osun State, Ogbeni Rauf Aregbesola, (in white), Corporate Services Executive, MTN Nigeria, Mr. Akinwale Goodluck (2nd right) and the Executive Secretary, MTNF, Nonny Ugboma (left) at the official launch of the EyeRIS project in Osun State
2. The Executive Governor of Abia State Chief T. A. Orji (Ochendo) removing patches from the eye of a patient after the cataract surgery while Director, MTNF Denis Okoro (left) and others look on.
3. The Executive Governor of Sokoto State, Alhaji Aliyu M. Wamako removing a patch from the eye of a patient after the catarct surgery.
1 2 3
22 MTN Nigeria Foundation
Following the success of the EYERIS project and the numerous requests received from other states, the Board of Directors has approved the implementation of its second phase in 2014. Please find below a summary table highlighting the achievements of the project so far.
GEO-POL ZONE
SW
SW
NC
SS
SE
NW
NW
TOTAL
STATE
Osun
(Ogun, Ondo, Oyo & Lagos)
Niger
Delta
Abia
Sokoto
Jigawa
SURGERIES PERFORMED
1,008
992
1,481
1,093
2,010
1,469
2,557
10,610
GLASSES DISTRIBUTED
1,996
2,000
1,950
2,000
2,000
2,000
11,946
DRUGS DISTRIBUTED
1,999
1,527
1,532
2,000
1,750
2,000
10,808
22 MTN Nigeria Foundation
23Annual Report 2013
The Foundation continues to embark on a mix of
quick implementation and long incubating projects
to achieve a balanced portfolio and to reach different
needs of beneficiaries across the country.
T h e e x p e r i e n c e c o n f i r m s t h a t q u i c k / s h o r t
implementation projects can be significantly more
successful than longer-term projects. These projects
take a short period of time to execute and require
less commitment from the custodian stakeholders of
the project (although their participation is essential
for their success) and minimal post-implementation
management. However, these projects are extremely
impactful and generate goodwill for the business and
commendation from various stakeholders.
Projects in this category include the following:
MTNF Security Support Project (SSP)
MTNF Learning Facility Support Project
MTNF Learning Support Material Initiative (LSMI)
MTNF Science and Technology Scholarship Scheme
MTNF Scholarship for the Blind
MTNF Orphanage Support
MTNF Disability Support Project
MTNF Community Sponsorship Project
MTNF Medical Intervention Scheme
2013 presented the Foundation with various set-backs
that contributed to the poor performance of five of the
Foundation projects. These projects are all classified
as long-incubation. The challenges encountered
are not new but they have progressively affected the
sustainability of projects like MTNF Universities Connect,
MTNF SchoolsConnect and MTNF Skills Acquisition for
Persons with Disability. They are follows:
Poor commitment to the PPP (Public Private
partnership) Model
Stakeholders/beneficiary institutions reneging
on their obligations
Changes in government custodians of projects
without appropriate handover process which
impacts negatively on implementation and
continuity
Low capacity of implementing partners
Poor and total absence of power supply at
beneficiary facilities
Poor Partner organizations’ Culture & Corporate
Governance Structures with some partners tending
to become beneficiaries
Despite the challenges mentioned above 2013 was
a good year for the Foundation with numerous
accolades received from stakeholders for the roll-out
of worthwhile projects across the country. It therefore
gives me pleasure to present you with the report on
the operations of the MTN Nigeria Foundation for the
year 2013
find out more at:http://www.mtnonline.com/mtnfoundation/about-us
24 MTN Nigeria Foundation 24 MTN Nigeria Foundation
Economic Empowerment Portfolio
MTNF Scholarship Scheme for Blind Students Phase 2 (MTNF - SSBS)
The MTNF SSBS, in its second phase, aims to recognize
gifted blind students in 200 level/2nd year or 300
level/3rd year in accredited Public Universities, Colleges
of Education and Polytechnics by providing them with
N200, 000 annually. In the first phase 113 blind students
who depend on Braille were awarded scholarships.
The selection process for the academic session
2012/2013 ended with a total of 171 students (98 new
and 73 old awardees) being awarded scholarship and
the award ceremonies took place in conjunction with
the Science and Technology Scholarship Scheme in
March 2013. The award ceremony was flagged off
by the representative of the Honourable Minister of
Women Affairs and Social Development, Mr. George
Osi, Permanent Secretary, Federal Ministry of Women
Affairs & Social Development (FMWA&SD), who
Awardees are expected to maintain their Cumulative
Grade Point Average (CGPA) to continue to remain on
the scheme and receive scholarship annually until their
graduation.
1. L-R: Nonny Ugboma; Vice Chairman MTNN, Col. Sani Bello; a Blind awardee and Permanent Secretary, Ministry of Women Affairs & Social Development, Mr. George Osi at the Abuja Award Ceremony
2. Blind Students with dignitaries in Owerri, Imo state.
3. Cross-section of Awardees at the Owerri, Imo State Award Ceremony.
1 2
S/N
1
2
3
Total
Region
North
East
West
Total Number of Awardees
33
58
80
171
3
Enabling...the education and social inclusion
of blind students
commended MTNF for contributing to the socio-
economic development of Nigerian youths. The
breakdown of the phase 2 awardees per geo-political
zone is presented in the table below:
25Annual Report 2013
MTNF Widows Empowerment Scheme (MTNF-WES)
Following an assessment of various ideas which
emerged from the stakeholders’ workshop held in 2011
in collaboration with the Federal Ministry of Women
Affairs & Social Development (FMWA&SD), the MTN
Nigeria Foundation Board approved the Widows’ Empowerment Scheme (MTNF-WES). This is a
micro-finance initiative, aimed at providing business
management skills and equipment support to boost
the businesses of 300 widows from across the six geo-
political zones, made up of 50 widows per state. The
beneficiary states are Imo, Lagos, Rivers, Sokoto, Taraba and the Federal Capital Territory. The
project is being implemented by Growing Businesses 1. Participants at the Widow’s training
session in Lagos State
2. Group work session during the training of Widows in Sokoto State.
3. Participants at the Widows’ training session in Taraba
Foundation (GBF). The beneficiaries were selected
following applications through state ministries of
women affair and widows-serving organizations,
interview sessions, administration of vulnerability
index analysis and execution of agreements with
microfinance institutions for the loan repayment
component. Beneficiaries have been provided with
basic business management skills training and are
being monitored to ensure savings culture, while the
equipment support is scheduled for the second quarter
of 2014.
3
2
1
26 MTN Nigeria Foundation
Commemoration of the International Widows’ Day in Partnership with the Federal Ministry of Women Affairs & Social Development
In furtherance of MTNF’s commitment to support the
cause of widows in Nigeria, the MTNF in partnership
with the Federal Ministry of Women Affairs & Social
Development commemorated the International
Widows’ day on 23rd June, 2013. A press conference
was organized to create awareness of the challenges
Widows face and advocate for support. The event
also provided a platform to officially flag off the MTNF
Widow’s Empowerment Scheme in the Federal Capital
Territory.
1
2
1. The Minister of Women Affairs & Social Development, Hajiya Zainab Maina at
the press conference event.
2. The Executive Secretary, MTNF, Nonny Ugboma, delivering the MTNF Address.
International Widows Day is a United Nations ratified day of action to address the “poverty and injustice faced by millions of widows and their dependents in many countries”. The day takes place annually on 23 June.
find out more at:http://www.mtnonline.com/mtnfoundation/about-us http://www.un.org/en/events/widowsday/
26 MTN Nigeria Foundation
27Annual Report 2013
MTNF Security Support Project (MTNF-SSP)
The MTNF–SSP aims to contribute to a secure and favourable environment for lives, property and business operations across the country. In 2012, MTN Foundation provided 55 fully equipped and kitted security patrol vehicles to 10 states and the Federal Capital Territory. In 2013, the project was replicated in the following states: Ondo, Lagos, Enugu, Gombe, Kaduna, Kogi, Bayelsa and Akwa Ibom and the security patrol vehicles were well received by the various Executive Governors of the States.
Contributing to the security of the country
1. L – R: Deputy Governor Lagos State, Hon. Victoria Adejoke Orelope-Adefulire, CEO, MTN Nigeria, Michael
Ikpoki, Executive Governor Lagos State, Babatunde Fashola, Nonny
Ugboma and other guests at the handover of the security patrol
vehicles.
2. Tape-cutting for the security patrol vehicles by the Executive Governor
of Ondo State, Dr. Olusegun Mimiko (2nd from left) during the handover
ceremony in Ondo state.
3. L-R: Deputy Governor, Bayelsa State, Rear Admiral John Jonah (rtd)
and Mr. Onomari Horsefall at the official handover of security vehicles
by MTNF at the Bayelsa State capital, Yenogoa.
4. His Excellency, the Executive Governor of Gombe State, Alhaji Ibrahim Hassan Dankwambo test-drives one of the security vehicles during the official handover of the security patrol vehicles.
5. Secretary to the State Government of Akwa Ibom, Mr. Udom Emmanuel (cutting the tape) and Mr. Onomari Horsfall (far right) at the official handover of security vehicles by MTNF.
1
3
2
4 5
27Annual Report 2013
28 MTN Nigeria Foundation
MTNF/FOTD Skills Acquisition Project for Persons with Disabilities
The MTNF/FOTD Skills Acquisition Project, which
commenced in 2009, was designed to empower
disabled youths with skills in the areas of Tailoring
& Bead Making, Shoe Making & Welding, to make
them employable or to set up their own businesses by
undergoing a two-year programme. The first phase
saw the graduation and empowerment of 45 young
persons with disabilities in 2011. Two years later in 2013,
46 graduated and were presented with the following
empowerment items to assist them in setting up their
businesses:
21 Ultrasonic Tailoring Embroidery Machines;
11 Electric Arc-Welding Machines; and
14 Straight Shoe Sewing Machines
Empowering...persons with disabilities
1. Cross-section of the graduands.
2. Mrs. Mercy Daodu delivering the Keynote Address on behalf of the
Honourable Minister, Women Affairs & Social Development at the graduation
ceremony.
1
2
28 MTN Nigeria Foundation
29Annual Report 2013
MTNF Disability Support Project (MTNF-DSP)
The MTNF-DSP is aimed at improving accessibility
and functionality of persons living with disabilities
through the provision of mobility aids and appliances.
Following the distribution of 15,000 disability aids and
appliances in the 36 states and the FCT between 2009
and 2011 an assessment of the project was conducted
to identify success factors, learning points and areas of
improvement before the commencement of another
round of distribution. The outcome of the evaluation
led to the inclusion of new items such as bendable
calipers for beneficiaries with polio, stylus & mar burgs
and talking phones for blind students.
A total of 4053 mobility aids and appliances were
distributed to beneficiaries in the following states:
Federal Capital Territory, Adamawa, Anambra, Benue,
Cross River, Delta, Ebonyi, Kebbi, Lagos, Oyo, Sokoto
and Taraba states.
MTNF believes that by accepting and empowering ALL citizens, we are not only performing a humane and
noble deed, but are also contributing to the socio-
economic development of our country.
1 2
3
1. L-R: Mr. Dennis Okoro, Director, MTN Foundation; Mrs. Risikat Akinyode, Permanent Secretary, Lagos State Ministry of Women Affairs & Poverty Alleviation and Ms. Nonny Ugboma, Executive Secretary, MTN Foundation, presenting a Wheel Chair to Master Seyi Ajibolu, one of the beneficiaries in Lagos.
2. Otunba Moses Alake, Deputy Governor, Oyo State (holding a mic) presenting a Braille machine to Mr. Oladepo Ismail of the School for the Blind, Saki, Oyo State, with (l-r) Prince Paul Adelabu, Special Assistant on People with Disabilities to the Oyo State Government and Mr. Rotimi Odusola, Snr. Manager, Commercial Legal and Mrs. Foyin Oyebola, Economic Empowerment Portfolio Manager, in Ibadan.
3. Barrister Patricia Endeley, Hon. Commissioner, Ministry of Social Welfare & Community Development presenting a tricycle to one of the DSP beneficiaries in Cross River State
30 MTN Nigeria Foundation
The International Day of Persons with Disabilities (IDPwD)
MTNF in collaboration with The Federal Ministry Of Women Affairs Commemorate 2013 IDPWD
MTNF once again collaborated with the Federal
Ministry of Women Affairs & Social Development to
commemorate the 2013 edition of the International
Day of Persons with Disabilities (IDPWD) in Abuja.
MTNF has been partnering with the Federal Ministry
of Women Affairs & Social Development since 2009 to
commemorate this important day. The 2013 theme was
““Break Barriers, Open Door: For Inclusive Society for All”.
This platform was used to distribute some mobility aids
and appliances to selected persons with disabilities
L-R Ms. Nonny Ugboma, Executive Secretary, MTN Foundation, Mr. Ephraim Nwokonneya of the NCC presenting a hearing aid to Aisha Abubakar, a beneficiary and Mrs. Mercy Daodu, Director, Rehabilitation Department, Federal Ministry of Women Affairs & Social Development, in Abuja during the 2013 edition of the IDPWD
MTNF Community Sponsorship Project
The fourth phase of the MTNF Community Sponsorship
project was approved in 2012 by the Board of Directors
to provide infrastructure to deserving communities
where MTNN operates. In 2013, a total of 16 Community
Projects which included provision of boreholes,
transformers and renovation of community schools
and community halls were successfully implemented.
Communities in the following states benefitted in 2013:
Adamawa, Akwa Ibom, Anambra, Bayelsa, Delta, Edo,
Ekiti, Enugu, Ondo, Rivers, Sokoto and Taraba States
and FCT Abuja.
Supporting communitieswith basic infrastructure
500kva transformer installed at Inyi Community, Orji LGA, Enugu State
1. Hon. Oyetunde Ojo, with other high level community stakeholders at the handover ceremony of 500kva transformer installed at Ijero Local Government, Igemo Compound, Ekiti State.
2. Sen. Ike Ekweremadu with other high level government & community stakeholders at the handover ceremony of 500kva transformer installed at Inyi Community, Orji LGA, Enugu State.
International Day of Persons with Disabilities (IDPwD) is a United Nations sanctioned day that aims to promote an understanding of people with disability and encourage support for their dignity, rights and well-being.
find out more at:http://www.mtnonline.com/mtnfoundation/about-us http://www.idpwd.com.au/
30 MTN Nigeria Foundation
Persons with Disabilities
31Annual Report 2013
Contributing...to ICT and Science & Technology in Education
Education Portfolio
MTNF Restructured SchoolsConnect Project
This project was aimed at renovating existing
SchoolsConnect sites in 49 secondary schools and
re-equipping them for effective and focused study of
three core subjects: Mathematics, English Language
and ICT Appreciation.
The 49 restructured SchoolsConnect schools are located
in Lagos, Enugu, Imo, Cross Rivers, Ekiti, Ogun, Kwara,
Niger, Bauchi, Rivers, Kaduna and the FCT. Each school
received the following from this project:
1. Replacement of all computers, servers and other
appurtenances
2. Architecture enhancement to improve learning
3. Content enrichment at all 49 sites
4. Continual teacher training to empower nominated
teachers in the use of restructured schoolsconnect
facilities. Two trainings interventions have already
been delivered
5. Renovation of buildings housing SchoolsConnect
sites
SchoolsConnect facility in one of the beneficiary schools in Rivers State.
32 MTN Nigeria Foundation
MTNF Science & Technology Laboratory Project
This project was completed and commissioned in Abia,
Katsina, Edo and the FCT in 2013. 24 teachers and lab
attendants were also trained in Abia, the FCT and Edo
in 2013. Three additional science labs will be renovated
and re-equipped in Bauchi State in 2014.
2 2
1 1
33
1. Pictures of the Science Lab in Govt. Secondary School, Gwagwalada, FCT.
2. Borehole and power generator provided for each of the 45 beneficiary schools.
3. Pictures of the Science labs in Abia State.
32 MTN Nigeria Foundation
33Annual Report 2013
MTNF Science and Technology Scholarship Scheme
Under the MTNF Science and Technology Scholarship
Scheme, the Foundation currently provides financial
support to Science & Technology students in public
Universities, Polytechnics and Colleges of Education
across the six geo-political zones in Nigeria.
In phase 4 (2012/2013), a total of 10,810 applications
were received from which 2,500 applicants were
shortlisted for verification, with 1,500 selected to take
an aptitude test. After the test, 500 new awardees
were added to the returning 643 awardees making
a total of 1,143 recipients of the MTNF scholarships
in 2012/2013.
Award ceremonies were organized in the first quarter
of 2013 in the FCT, Owerri and Lagos In all, a total of
3,592 scholarships have been awarded by the MTNF
from inception made up as shown on the table:
Summary of Scholarships awarded since inception.
Phase 1Phase 2Phase 3Phase 4Total No. of Awardees
Total No. of Scholarship awards given since inception 3,592
2010500
500
2011451483
934
2012393367255
1,015
2013221191231500
1,143
Some Scholarship Recipients with MTNF BoD Chairman, Amb. Hamzat Ahmadu (front row - 4th from left), Directors, and Dignitaries at the award ceremony in Lagos
33Annual Report 2013
34 MTN Nigeria Foundation
MTNF Learning Support Materials Initiative
Various learning aids were provided for use in primary,
secondary schools and children’s organisations in 2013
for various events including: Children’s day, Sports Day,
Prize Giving Day, Religious season and end of year
celebrations. The branded items, include: school bags,
rain coats, pencil cases, mathematical sets, learning
puzzle maps, and exercise books.
About 250 public and private secondary schools and
children organisations received these materials in 2013.
12
3
1. Presentation: Command Children’s School, 23 Brigade Yola, Adamawa State.
2. Students of the Holy Angels Comprehensive Secondary School, Amechi Awka, Enugu State displaying some of the materials they received.
3. Students of National Secondary School, Okrika Rivers State with MTNF Learning Support Materials delivered to them.
Providing learning materials and facilitiesto aid Education
34 MTN Nigeria Foundation
35Annual Report 2013
MTNF-MUSON Music Scholars Programme
MTN Foundation partners with the Musical Society of
Nigeria (MUSON) to offer scholarships to 30 talented
Nigerians annually, leading to the award of a MUSON
Diploma in Music after two successful academic years.
To date, 162 Nigerians have graduated from this
program and have moved on to various musical careers
including performance in world class orchestras, further
scholarships to study at world class music schools in the
US, Europe and Africa; and to work as resource persons
at premium Private and Public Schools in Nigeria. In the
graduating ceremony of the 2013 class, the top three
outstanding scholars were rewarded with Prizes.
The 7th batch of beneficiaries of this scholarship will
graduate in July, 2014; while a fresh batch of 30 students
(Year 9) will be admitted in August, 2014.
MTN Foundation Learning Facility Supply Project
Under the phase 3 of this project, 16,000 students’ desks
& benches and 1,600 teachers’ chairs & tables were
distributed to 80 public schools, including military and
police schools across the 36 States and the FCT.
1
1
2
2
2
1. Scholars rendering a composition during the 2013 Appreciation Concert, directed by Mr Nwokedi.
2. 1st prize winner playing the sax in a performance with other graduands during the ceremony.
3. Cross-section of graduating scholars performing with one of their teachers, Mr Kanitz.
1. Furniture at Command Day Secondary School, Ijebu Ode, Ogun State.
2. Furniture at Agyana Junior Secondary School, FCT Abuja.
3. Teachers’ chairs & tables at Dr Muazu Babangida Aliyu Secondary School, Minna Niger State.
3
36 MTN Nigeria Foundation
Health Portfolio
MTNF CHSP (Community Health Screening Project)
In 2013, MTNF in collaboration with the Nigerian
Association of Nephrology (NAN) successfully executed
the 3rd Phase of the MTNF Community Health Screening
Project (MTNF CHSP). The MTNF CHSP is geared towards
early detection of common non-communicable
diseases (such as diabetes, hypertension, obesity, kidney
disease etc), thus enabling affected persons to seek early
medical treatment.
The health screening exercises were successfully
conducted in the following public medical institutions
where MTNF Dialysis centres are located:
1. Federal Medical Centre, Owerri, Imo State
2. General Hospital, Onitsha, Anambra State
3. University of Ado-Ekiti Teaching Hospital, Ekiti State
4. General Hospital, Calabar, Cross River State.
5. Alimosho General Hospital, Igando, Lagos State
6. Benue State University Teaching Hospital, Makurdi,
Benue State
Contributing to a healthier Nigeria...
A total of 3,142 persons benefitted from the outreaches
from the 24th of August - 16th November, 2013; where
health indicators such as Body Mass Index, Blood
Pressure, Blood Sugar, total cholesterol, Creatinine, Urea,
and Triglyceride etc. were checked. This will provide a
veritable platform for the collection of scientific data on
non-communicable diseases in Nigeria which will help
determine the non-communicable disease prevalence
and distribution pattern across the country.
Registration Points
1. General Hospital, Calabar.
2. University of Ado-Ekiti Teaching Hospital.
3. Federal Medical Centre, Owerri.
3. Alimosho General Hospital, Lagos.
3 4
2
1
36 MTN Nigeria Foundation
37Annual Report 2013
Vitals & Blood Pressure Assessment
1. General Hospital, Calabar.
2. University of Ado-Ekiti Teaching Hospital.
Health Talks
1. General Hospital, Onitsha.
2. Benue State University Teaching Hospital, Makurdi.
3. Benue State University Teaching Hospital,
Makurdi.
1 2 3
2 2
1 1
37Annual Report 2013
38 MTN Nigeria Foundation
MTNF Medical Support Project: Haemodialysis & Mammography Centres
Since the commencement of the MTNF Medical
Support Project in 2009, MTNF has been supporting
public hospitals in Nigeria through the provision of
haemodialysis and mammography services at 12
state-of-the-art Haemodialysis and 6 Mammography
Centres across the 6 geo-political zones of the country.
To critically assess the status of the MTNF Dialysis and
Mammography centres from inception to date focusing
on the key success factors, challenges encountered and
the way forward, two Stakeholders’ Workshops were
held on Monday 5th August, 2013 and Thursday 24th
October, 2013 respectively in Lagos.
Present at the workshops were Chief Medical Directors
of beneficiary hospitals, Nephrologists, Radiologists, the
Project Consultants amongst others.
Group Sessions during the Stakeholders’ Workshop on MTNF MSP (Haemodialysis)
Seeking to deepen the impact of secondary health care infrastructure
39Annual Report 2013
Group Sessions during the Stakeholders’ Workshop on MTNF MSP (Mammography)
12 state-of-the-art Haemodialysis and
6 Mammography Centres across the
6 geo-political zones of the country.
40 MTN Nigeria Foundation
MTNF Eyesight Restoration Intervention Scheme (MTNF EyeRIS Project)
The MTNF EyeRIS Project, endorsed by the Federal
Ministry of Health, is an ocular health intervention in
response to Nigeria’s low vision and high blindness
prevalence rate which in most cases can be ascribed
to Cataracts.
A total of 33,364 beneficiaries from 6 states across
the country were screened and treated for cataracts
and other ocular diseases. Out of this number, 10,610
patients nationwide benefited from free cataract
surgeries, while 11,946 reading glasses and 10,808 drug
packs were also distributed to patients, for treatment
of allergies and other eye infections.
The MTNF EyeRIS Project is implemented by the
Eye Foundation Centre for the Prevention of
Blindness, a reputable indigenous organisation and
ophthalmological service provider, in collaboration
with the following states: Osun, Niger, Delta, Abia,
Sokoto and Jigawa.
Performance Bar Graph-Total
44%
38%
8%1%5%
4%
Surgeries – Age Distribution
Performance Bar Chart- Per State
Cataract Cataract
Glasses
Medicines
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Jigawa
Sokoto
Abia
Delta
Niger
SW Mop-Up
Osun
Glasses Medicines
Restoringvision...
< 20
21 - 40
41 - 60
61 - 80
> 80
N/A
10,610
1,0000
11,946
2,000
10,808
3,000
41Annual Report 2013
7
4
1
5 6
2 3
1. The commissioner of Health Delta State, Dr. Joseph S. Otumara discusses with one of the beneficiaries of the EyeRIS project in Delta.
2. Screening of a beneficiary at Agbor, Delta State.
3. Screening test carried out on a beneficiary at IBB Specialist Hospital, Minna.
4. Screening of a beneficiary at IBB Specialist Hospital, Minna, Niger State.
5. Surgeons carry out cataract surgery on a patient under the project.
6. The Deputy Governor of Jigawa State, Alhaji Ahmed Mahmoud Gumel removing a patch from the eye of a patient after the cataract surgery
7. Screening test carried out on a patient at Noma Children Hospital, Sokoto.
42 MTN Nigeria Foundation
MTNF Y’ello Doctor Mobile Medical Intervention Scheme (MTNF Y’ello Doctor Project)
MTNF Y’ello Doctor Project is implemented by the
Centre for Integrated Health Programme (CIHP) in
collaboration with the National Primary Health Care
Development Agency (NPHCDA).
The Project adopts the Public Private Partnership (PPP)
approach with MTNF providing project funds for the
procurement of the mobile clinics, consumables and
engaging CIHP as project consultants. The beneficiary
States will provide the required medical personnel,
security and general support for a successful project
implementation.
The MTNF Yello Doctor Project is aimed at enabling
Nigerians living in rural/peri-urban communities to
easily access primary healthcare interventions such as
maternal and child health services, and the control of
communicable & non-communicable diseases through
the mobile clinic platform. The Project involves the
deployment of state-of-the-art mobile clinics in six
States (one per geo-political zone) with consumables
and drugs for an initial one year period.
Enhancing access to primary healthcare
MTNF through several national newspapers in August
2011 called for submission of Expressions of Interest
(EOI) from interested State Ministries of Health to
be considered as beneficiaries of the project. All
submissions went through a selection process hinged
on clearly defined qualitative and quantitative criteria
with verification visits conducted to shortlisted States.
The selection was done after successful verification visits
to six local government areas and 18 Public Health
Centres in each State in March 2012. These vehicles are
built to detailed specifications and of the six vehicles;
four have been deployed and commissioned in Ogun,
Delta, Abia and Taraba States with the two remaining
vehicles to be deployed early in 2014 to a State in the
North-Central and North-West geo-political zones.
A national launch of the MTNF Y’ello Doctor Project was
held in December 2013 in Lagos to mark the unveiling
of the MTNF Y’ello Doctor Project Mobile Clinics.
4
43Annual Report 2013
7 8
4
1
5 6
2 3
1. MTNN CEO, Mr. Michael Ikpoki addressing participants at the event.
2. Dr. Nnenna N. Ihebuzor; Director, Primary Health Care Systems Development, NPHCDA giving her address.
3. Tape cutting ceremony to officially unveil the MTNF Y’ello Doctor Project. L-R: Mr. Michael Ikpoki, Dr. Nnenna N. Ihebuzor and Mr. Akinwale Goodluck listening to an address at the event.
4. The MTNF Y’ello Doctor Project Mobile Clinics on display at the event.
5. Doctor’s Station.
6. Examination Couch.
7. Lab Area.
8. Kitchenette.
43Annual Report 2013
44 MTN Nigeria Foundation
MTNF Orphanage Support Initiative
In December 2013, MTN Foundation once again
put smiles on the faces of hundreds of less privileged
residents of orphanages and hospices spread across
the country by donating household items to them.
The Foundation through the initiative, visited 40
orphanages and hospices in the six geo-political zones
of the country, donating food and household items
ranging from washing machines, fans, mattresses,
pillows, bags of rice, semovita, garri, vegetable oil, sugar,
beverages, detergent, soap, sugar etc.
In the last six years, MTN Foundation has consistently
visited orphanages and hospices across the country
donating utility goods and food items in order to
brighten and enrich their lives.
Official presentations of gifts to orphanages...
1
2
4
6
3
5
7
44 MTN Nigeria Foundation
45Annual Report 2013
Monitoring & EvaluationThe Monitoring and Evaluation (M & E) of MTNF projects
has grown increasingly important now that the
Foundation has projects located in 344 sites in 36 states
and the FCT. To this effect, the M & E unit, in an effort
to consolidate on our achievements and to ensure that
real time information on MTNF projects is generated,
works with a Consultant to conduct monitoring and
evaluation exercises on the projects across Nigeria. In
2013 the following projects were evaluated:
1. MTNF Skills Acquisition Project for Persons with
Disability
2. MTNF Science and Technology Laboratory Project
3. MTNF UniversitiesConnect Project
4. MTNF Medical Intervention Scheme: Audit of
Hospitals in India
1) MTNF Skills Acquisition Project for Persons with
Disability
The MTNF Skills Acquisition project for persons with
Disability was evaluated after the completion of
the second phase of the project. The result from the
evaluation confirmed that while the project was
very impactful, concerns about the sustainability of
the project will make it difficult for the foundation to
continue.
2) MTNF Science and Technology Laboratory Project
An evaluation of the first phase of the MTNF Science and
Technology Laboratory Project was conducted and it
was discovered that the project was well received by the
beneficiaries to the extent that Lagos state government
established more labs on their own following the
successful implementation of four MTNF laboratories
in the state. The evaluation exercise also gave rise to
recommendations, such as the re-training of teachers
and lab attendants and the provision of more spacious
laboratories to accommodate more students. This will
be incorporated into the next phase.
3) MTNF UniversitiesConnect Project
The evaluation of the MTNF UniversitiesConnect project
was predicated on the need to identify challenges
experienced at some of the project sites and to proffer
solutions based on empirical evidence. Result revealed
1. Nonny Ugboma, Executive secretary, MTNF presenting items to the proprietress of Al-Ummah Orphans Foundation, Abuja
2. NCC Chairman- Engr. Peter Igoh presenting items on behalf of MTNF to Matron of Children of Mary Orphanage, Otukpo – Madam Rose Oganyi
3. Helene Heslop (middle) and Cyril Ilok (right) both of MTNN presenting items to a representative of Arrow of God Orphanage, Lagos 4. Wife of Niger State governor, Hajia Jummai Babangida Aliyu presenting items on behalf of MTNF to a representative of Government Orphanage, Minna
5. Andrew Esemezie , GM Customer Experience, MTNN presenting items to Mrs Laja Adedoyin of Hearts of Gold Hospice, Surulere, Lagos 6. Sola Barrow S &D Executive, MTNN presenting items to representatives of Nigerian Red Cross Orphanage , Lagos
7. Wale Goodluck, Corporate Services Executive, MTNN presenting items to proprietress of Lady Atinuke Oyindamola Memorial Home for Disabled Persons, Lagos
46 MTN Nigeria Foundation 46 MTN Nigeria Foundation
Partnerships
that students who are the direct beneficiaries of the
services of the virtual libraries in the 49 project sites
were appreciative of the project. Some challenges such
as poor electricity supply, poor network connectivity
and lack of cooperation by the management of some
beneficiary institutions were documented.
4) MTNF Medical Intervention Scheme: Audit of
Hospitals in India
The MTNF Medical Intervention Scheme (MIS) was
established in 2009 to provide local or international
medical treatment for indigent Nigerians suffering
from ailments that have a definitive cure. The majority
of the international treatments were carried out in
hospitals based in India. Though the project has been
highly successful with few casualties recorded, some
gaps were noticed during the implementation of the
program which could pose some risk to the business.
In the final analysis, the audit uncovered opportunities
for understanding the Indian Health care system, their
capabilities, skills and numerous services available to
MTNF. It also enabled us identify areas of collaboration
and measures to achieve a sustainable and cost
effective international medical treatment process and
procedure for MTNF.
Monitoring of MTNF Projects The M&E unit monitors MTNF projects nationwide on
a monthly and quarterly basis with the assistance of
its Consultant and Government Community Relations
Officers (GCRO) based in MTN Nigeria offices in the
regions. These monitoring activities provide relevant
information on MTNF projects for decision making by
MTNF management and the BOD.
ConclusionWe are pleased that the drive we embarked on in
2013 towards the Integration of ICT elements into the
Foundation Projects and alignment with the MTN’s
Geo-Marketing activities were successful. The equally
successful implementation of various initiatives across
the six-geo political zones of the country is due to the
strong can-do spirit demonstrated by Foundation
team members who travelled round the country to
oversee roll-out of projects during the year, despite
the heightened security concerns. In addition, the
continued collaboration with other business units
as well as the partnership with project consultants
and other external stakeholders also contributed to a
satisfactory year for the Foundation.
The numerous success stories in 2013 arising from the
Foundation clearly indicate that more is expected from
MTN in the CSR space and as such we will certainly not
rest on our laurels! The Foundation team therefore
commits to actively collaborating with the rest of the
business to deliver on the 2014 strategic pillars thereby
ensuring that MTN is well positioned to leave good
behind and Be Better!
Through its varous partnerships and investments in 338 locations nationwide (and counting), the MTN Foundation remains committed to finding sustainable solutions to the challenges of our time and building a better future for all.
The Management Team
Nonny Ugboma - Executive Secretary
47Annual Report 2013
The Management Team
MTNF Projects approved for 2013
Nonny Ugboma Executive Secretary
Ekong Udobang Health Portfolio Manager
Foyinsola Oyebola Economic Empowerment
Portfolio Manager
Victor Orie-OnonogbuEducation Portfolio Manager
Health1. Community Health Screening Project Phase 3 40,821,250
2. Orphanage Support Initiative 61,740,000
3. Medical Support Project – Heamodialysis 439,205,000
4. Medical Support Project – Mammogarphy Consolidation Phase 129,000,000
Education.1. Learning Supply Material Initiative Phase 7 192,700,0002. Science and Technology Scholarship Scheme Phase 5 366,691,883.133. Muson Phase 8 43,090,000
Economic Empowerment.
1. Widow’s Empowerment Scheme 52,486,2002. Scholarship Scheme for Blind Students Phase 3 56,607,000
Social Action Quick-win Projects
1. Security Support Project Phase 2 343,246,325
47Annual Report 2013
48 MTN Nigeria Foundation
Report Of The Independent Auditor To The Members Of MTN Nigeria Foundation Limited By Guarantee
Report on the financial statements
We have audited the accompanying financial statements of MTN Nigeria Foundation Limited by Guarantee (“the company”). These financial statements comprise the statement
of financial position as at 31 December 2013 and the statements of comprehensive income, changes in equity and cash flows for the year then ended, and a summary of
significant accounting policies and other explanatory notes.
Directors’ responsibility for the financial statements
The directors are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and with the
requirements of the Companies and Allied Matters Act and for such internal control, as the directors determine is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing.
Those standards require that we comply with ethical requirements and plan and perform our audit to obtain reasonable assurance that the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the
auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
PriceWaterhouseCoopers
49Annual Report 2013
Opinion
In our opinion the accompanying financial statements give a true and fair view of the state of the company’s financial affairs at 31 December 2013 and of its financial performance
and it’s cash flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Companies and Allied Matters Act and
the Financial Reporting Council of Nigeria Act.
Report on other legal requirements
The Companies and Allied Matters Act requires that in carrying out our audit we consider and report
to you on the following matters. We confirm that:
i) we have obtained all the information and explanations which to the best of our knowledge and belief werenecessary for the purposes of our audit;
ii) the company has kept proper books of account, so far as appears from our examination of those books and returns adequate for our audit have been received
from branches not visited by us;
iii) the company’s balance sheet and statement of receipt and expenditure account are in agreement with the books of account.
Engagement Partner: Gabriel UkpehFRC/2013/ICAN/00000001882For: PriceWaterhouseCoopersChartered Accountants Lagos, Nigeria
03 June 2014.
50 MTN Nigeria Foundation
Statement of Comprehensive IncomeFor the year ended 31 December 2013
Notes 2013 2012 N’000 N’000
RevenueDonations 4. 2,108,087 2,326,284Expenditure:Costs of activities in furtherance of Foundation objectives: - Health 473,253 321,242 - Economic empowerment 388,812 390,725 - Education 1,249,775 680,892 - Community sponsorship 392,553 355,316 - Donation to orphanages 42,670 78,177 - Other operating expenses 42,804 43,106
Total expenditure 2,589,867 1,869,458
Finance income 6. 388,852 449,014
(Deficit)/Surplus of income over expenditure (92,928) 905,840Other comprehensive income - -
Total comprehensive (loss)/income for the year (92,928) 905,840
The notes on pages 56 to 70 are an integral part of these financial statements.
51Annual Report 2013
Notes 31 December 2013 31 December 2012 01 January 2012 N’000 N’000 N’000 ASSETSCurrent assetsDonations receivable - - 111,850Other receivables 5 12,177 101,000 101,000Interest receivable 10,962 26,614 20,035Prepayment 12 291,213 405,179 56,255Cash and cash equivalents 10 4,817,526 4,713,408 4,032,289Total assets 5,131,878 5,246,201 4,321,429
FUNDS AND LIABILITIESFunds 5,100,720 4,194,880 2,924,632(Deficit)/Surplus of income over expenditure (92,928) 905,840 1,270,248 5,007,792 5,100,720 4,194,880Current liabilitiesAccounts payable 110,613 145,481 126,549Other payables 8 13,473 - - Total funds and liabilities 5,131,878 5,246,201 4,321,429
The Financial Statements on pages 48 - 72 were approved by the Board of Directors on 27 March 2014 and signed on behalf of the Board of Directors by:
………………………………………….…. FRC/2013/IODN/00000002576 )
Directors………………………………………….…. FRC/2014/NBA/00000005741 )
The notes on pages 56 to 70 are an integral part of these financial statements.
Statement of Financial Positionat 31 December 2013
52 MTN Nigeria Foundation
Statement of CashflowsFor the year ended 31 December 2013
Notes 2013 2012 N’000 N’000
Cash flow from operating activities:Cash (used in)/generated from operations 7 (300,386) 238,684 Interest received 404,504 442,435
Cash generated from operations 104,118 681,119
Net (decrease)/increase in cash and cash equivalents 104,118 681,119 Cash and cash equivalents at the beginning of the year 4,713,408 4,032,289 Cash and cash equivalents at the end of the year 4,817,526 4,713,408
The notes on pages 56 to 70 are an integral part of these financial statements.
53Annual Report 2013
Statement of changes in fundsFor the year ended 31 December 2013
Funds Surplus/ (Deficit) Total Funds N’000 N’000 N’000
Balance at 1 January 2012 4,194,880 - 4,194,880 Comprehensive income - 905,840 905,840 Balance at 31 December 2012 4,194,880 905,840 5,100,720
Balance at 1 January 2013 5,100,720 - 5,100,720 Comprehensive income - (92,928) (92,928)Balance at 31 December 2013 5,100,720 (92,928) 5,007,792
The notes on pages 56 to 70 are an integral part of these financial statements.
54 MTN Nigeria Foundation
Summary of Principal Accounting Policies For the year ended 31 December 2013
The principal accounting policies applied in the preparation of the IFRS financial statements are set out below. 1. Basis of preparation
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The financial statements for the year ended 31 December 2013 are the first financial statements that the Foundation will prepare in accordance with IFRS. The financial statements have been prepared under the historical cost basis except for certain financial assets and liabilities measured at fair value on initial recognition. The Foundation has not applied any IFRS 1 exceptions and exemptions as at the date of transition. Amounts are rounded to the nearest thousand, except where stated otherwise.
2. Going concernThe foundation’s forecasts and projections, taking account of reasonable possible changes in funding performance, show that the Foundation should be able to operate with the level of its current funding. The directors have a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future. The Foundation therefore continues to adopt the going concern basis in preparing the financial statements.
3. Foreign currency translation Functional and presentation currency items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The financial statements are presented in Naira, which is also the functional currency of the Foundation. Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions.
4. Finance incomeFinance income comprises income on funds invested and is recognized as it accrues in the statement of comprehensive income, using the effective interest rate method.
5. Revenue recognitionDonations are recognized as revenue when it is probable that the economic benefits associated with the transaction will flow to the Foundation and the amount can be measured reliably.
6. ExpenditureExpenditure is accounted for on an accrual basis and is classified under headings that aggregate all costs of similar nature.
7. PrepaymentsPrepayments are recognized at cost which is the payments made in advance of obtaining rights of access to goods or receipts of service. Subsequent measurement is based on cost less amortisation in the period.
8. Cash and cash equivalentsCash and cash equivalents comprises cash deposits in local banks which are immediately available for use in the current operations and other highly liquid investments which have maturity period of 3 months or less.
55Annual Report 2013
9. Financial Assets and LiabilitiesFinancial assets and financial liabilities are recognized when the foundation becomes a party to the contractual provisions of the instrument.
9.1 Financial assetsThe foundation classifies its financial assets into loans and receivables. The classification is dependent on the purpose for which the financial assets were acquired. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables are recognized initially at fair value and subsequently measured at amortised cost using the effective interest method, less any accumulated impairment losses. Loans and receivables comprise interest receivable, other receivables and cash and cash equivalents. Interest receivable Interest receivable represents interest on investment in short-term commercial papers; call deposits and current account balances, earned but yet to be received.Other receivablesOther receivables are amounts due from beneficiaries of advances provided to economically empower selected Nigerians under the foundation’s economic empowerment projects as approved by the foundation board. If collection is expected in one year or less, they are classified as current assets, if not they are classified as non-current assets.
9.2 Financial liabilitiesFinancial liabilities comprise accruals and other payables. Financial liabilities are initially measured at fair value and are subsequently measured at amortised cost using effective interest rate method.
10. ImpairmentFinancial assetsA financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset that can be reliably measured. An impairment of receivables is established when there is objective evidence that the foundation will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial re-organisation, and default or delinquency in payments are considered indicators that the receivable is impaired. The carrying amount of the receivable is reduced and the amount of the loss is recognized in comprehensive income. When a receivable is uncollectible, it is written off. Subsequent recoveries of amounts previously written off are credited to comprehensive income.
11. New accounting pronouncementsThe foundation has adopted all the new, revised or amended accounting pronouncements as issued by the IASB, which were effective and applicable for the foundation from 1 January 2013. None of the adopted pronouncements had a significant impact on the Foundation’s results for the year ended 31 December 2013. Amendments to IFRS 9 - Financial Instruments (2013) (effective date not stated) IFRS 9 is the first standard issued as part of a wider project to replace IAS39. IFRS9 retains but simplifies the mixed measurement model and establishes two primary measurement categories for financial assets: amortised cost and fair value. The basis of classification depends on the entity’s business model and the contractual cash flow characteristics of the financial asset. IFRS 9 also replaces the rule-based hedge accounting requirements in IAS 39 and more closely align the accounting with risk management activities. The guidance in IAS 39 on impairment of financial assets continues to apply.
The adoption of IFRS 9 is not expected to change the measurement of the foundation’s financial assets and liabilities significantly, but will require a review of the current classification of financial assets and liabilities. Any changes in classification will be applied retrospectively. The hedge accounting requirements will be applied prospectively and is not expected to have a significant impact on the financial results of the Foundation.
56 MTN Nigeria Foundation
1 First-time adoption of International Financial Reporting Standards (IFRS)
These financial statements, for the year ended 31 December 2013, are the first the Foundation has prepared in accordance with IFRS. For periods up to and
including the year ended 31 December 2012, the Foundation prepared its financial statements in accordance with Statement of Accounting Standards (SAS -
Nigerian GAAP).
The Foundation has prepared financial statements which comply with IFRS applicable for periods ending on or before 31 December 2013, together with the
comparative period data as at and for the year ended 31 December 2012 (based on SAS - Nigerian GAAP), as described in the accounting policies. In preparing
these financial statements, the Foundation’s opening statement of financial position was prepared as at 1 January 2012, the Foundation’s date of transition to
IFRS. This note explains the principal adjustments made by the Foundation in restating its Local GAAP statement of financial position as at 1 January 2012 and its
previous Nigerian GAAP financial statements as at and for the year ended 31 December 2012.
Notes to the reconciliation of funds as at 1 January 2012 and 31 December 2012 and total comprehensive income for the year ended 31 December 2012.
A Donations receivable
Under the Local GAAP, the financial statements of the Foundation were prepared on a modified cash basis. Under IFRS, the financial statements have been
prepared using the accrual basis, leading to the recognition of donations receivable amounting to N111.9 million and an adjustment to total funds.
B Interest receivable
Under the Local GAAP, the financial statements of the Foundation were prepared on a modified cash basis. Under IFRS, the financial statements have been
prepared using the accrual basis, leading to the recognition of interest receivable at the transition date amounting to N20.0 million (31 December 2012 - N26.6
million) and adjustment to total funds.
C Other receivables
Under the Local GAAP, the financial statements of the Foundation were prepared on a modified cash basis. Under IFRS, the financial statements have been
prepared using the accrual basis, leading to the recognition of other receivables at the transition date amounting to N101.0 million and adjustment to total funds.
D Prepayments
Under the Local GAAP, the financial statements of the Foundation were prepared on a modified cash basis. Under IFRS, the financial statements have been
prepared using the accrual basis, leading to the recognition of prepayments at the transition date amounting to N56.3 million (31 December 2012 - N405.2 million)
and adjustment to total funds.
Notes to the financial statementFor the year ended 31 December 2013
57Annual Report 2013
E Accounts payable
Under the Local GAAP, the financial statements of the Foundation were prepared on a modified cash basis. Under IFRS, the financial statements have been prepared
using the accrual basis, leading to the recognition of accounts payable at the transition date amounting to N126.5 million (31 December 2012 - N145.5 million)
and adjustment to total funds.
F Revenue
Under the Local GAAP, the financial statements of the Foundation were prepared on a modified cash basis. Under IFRS, the financial statements have been prepared
using the accrual basis by recognising revenue in the accounting period to which they relate and when it is probable that the economic benefits will flow to
the Foundation. Additional revenue of N111.9 million has been recognised for the year ended 31 December 2012.
G Expenditure
Under the Local GAAP, the financial statements of the Foundation were prepared on a modified cash basis. Under IFRS, the financial statements have been prepared
using the accrual basis by recognising expenses in the accounting period to which they relate and and in line with relevant IFRS. Additional expense of N330 million
has been recognised for the year ended 31 December 2012
H Interest on investment
Under the Local GAAP, the financial statements of the Foundation were prepared on a modified cash basis. Under IFRS, the financial statements have been prepared
using the accrual basis by recognising finance income in the accounting period to which they relate and when it is probable that the economic benefits will flow to the
Foundation. Additional finance income of N6.6 million has been recognised for the year ended 31 December 2012
I Statement of cash flows
Under the Local GAAP, interest received was presented under investing activities. Under IFRS, these will be presented under operating activities as permitted by
IAS 7 - Statement of Cash Flows.
Notes to the financial statementFor the year ended 31 December 2013
58 MTN Nigeria Foundation
Nigerian GAAP Adjustment IFRS as at 1 January 2012 Note N’000 N’000 N’000 ASSETSCurrent assetsDonations receivable A - 111,850 111,850 Interest receivable B - 20,035 20,035 Other receivables C - 101,000 101,000 Prepayments D - 56,255 56,255 Cash and cash equivalents 4,032,289 - 4,032,289 Total assets 4,032,289 289,140 4,321,429
FUNDS AND LIABILITIESFunds 4,032,289 162,591 4,194,880 4,032,289 162,591 4,194,880
Current liabilitiesAccounts payable E - 126,549 126,549 Total liabilities - 126,549 126,549 Total funds and liabilities 4,032,289 289,140 4,321,429
Notes to the financial statementFor the year ended 31 December 2013
First-time adoption of IFRS (continued)
1.1 Reconciliation of funds as at 1 January 2012 (date of transition to IFRS)
59Annual Report 2013
1.2 Reconciliation of funds as at 31 December 2012 Nigerian GAAP Adjustment IFRS as at 31 December 2012 Note N’000 N’000 N’000Current assetsDonations receivable A - - - Interest receivable B - 26,614 26,614 Other receivables C - 101,000 101,000 Prepayments D - 405,179 405,179 Cash and cash equivalents 4,713,408 - 4,713,408
Total assets 4,713,408 532,793 5,246,201
Notes to the financial statementFor the year ended 31 December 2013
FUNDS AND LIABILITIESFunds 4,713,408 387,312 5,100,720
4,713,408 387,312 5,100,720
Current liabilitiesAccounts payable E - 145,481 145,481
Total liabilities - 145,481 145,481
Total funds and liabilities 4,713,408 532,793 5,246,201
60 MTN Nigeria Foundation
1.3 Reconciliation of income statement for the Nigerian GAAP Adjustment IFRS as at 31 December 2012 year ended 31 December 2012. Note N’000 N’000 N’000Revenue F 2,438,134 (111,850) 2,326,284 2,438,134 (111,850) 2,326,284 Costs of activities in furtherance of Foundation Objectives: - Health 553,109 (231,867) 321,242 - Economic Empowerment 414,354 (23,629) 390,725 - Education 793,422 (112,530) 680,892 - Community Sponsorship 326,854 28,462 355,316 - Donation to Orphanages 78,177 - 78,177 - Other operating expenses 33,535 9,571 43,106
Total Expenditure G 2,199,451 (329,993) 1,869,458
Surplus of income over expenditure 238,683 218,143 456,826 Interest on investment H 442,436 6,578 449,014
Surplus revenue for the year 681,119 224,721 905,840
Notes to the financial statement For the year ended 31 December 2013
1.4 Reconciliation of statement of cashflows for the year ended 31 December 2012.
Nigerian GAAP Adjustment IFRS as at 1 January 2012 Note N’000 N’000 N’000 Cash flow from operating activities:
Cash generated from operations 238,684 - 238,684 Interest received - 442,435 442,435 Net cash generated from operating activities 238,684 442,435 681,119
Cashflows from investment activities:Interest received I 442,435 (442,435) - Net cash used in investing activities 442,435 (442,435) -
Net (decrease)/increase in cash & cash equivalents 681,119 - 681,119 Cash and cash equivalents at the beginning of the year 4,032,289 - 4,032,289
Cash and cash equivalents at the end of the year 4,713,408 - 4,713,408
61Annual Report 2013
Notes to the financial statement For the year ended 31 December 2013
2. General information
MTN Nigeria Communications Limited (MTNN) has been at the forefront of the mobile telephone revolution in Nigeria since its inception in 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 (the “Foundation”) has therefore been established for the purpose of focusing MTN Nigeria’s efforts in terms of its Corporate
Social Responsibility initiatives to help reduce poverty and foster sustainable development in Nigeria.
In September 2004, MTN Nigeria Communications Limited consulted with a diverse 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 a more focused strategy that targets three key areas of need, namely Education, Health and Economic
Empowerment. It is against this background that the MTN Nigeria Communications Limited Board resolved to make available up to 1% of its profit after tax annually to the
Foundation, which was duly incorporated in July 2004. The Foundation’s programme of activities is supported by MTN Nigeria Communications Limited.
The address of the Foundation’s registered office is 4, Aromire Street, Ikoyi, Lagos.
3. Accounting policies
The principal accounting policies adopted by the Foundation in the preparation of the Financial Statements are set out in the summary of principal accounting policies on
pages 54 to 55.
4. Revenue December 2013 December 2012
N’000 N’000
Donations- MTNN 2,108,087 2,326,284
2,108,087 2,326,284
MTNN made available the sum of N2.1 billion (December 2012: N2.3 billion) to MTN Foundation, in support of the Foundations activities for the year.
5. Other Receivables December 2013 December 2012 January 2012
N’000 N’000 N’000
Refundable deposits 12,177 101,000 101,000
Refundable deposits are amounts due from beneficiaries of advances provided to economically empower selected Nigerians under the Foundation’s economic empowerment
projects as approved by the Foundation Board.
6. Finance Income December 2013 December 2012
N’000 N’000
Interest on short-term deposits 388,852 449,014
Finance income represents interest received on investment in short term commercial papers, call deposits and current account balances including interest receivable
of N10.9m (December 2012: N26.6m).
62 MTN Nigeria Foundation
7. Cash generated from operating activities December 2013 December 2012
N’000 N’000
(Deficit)/Surplus of income over expenditure (92,928) 905,840
Finance income (388,852) (449,014)
Changes in working capital;
Decrease/(Increase) in donations receivable - 111,850Decrease/(Increase) in other receivables 88,823 -Decrease/(Increase) in prepayments 113,966 (348,923)
(Decrease)/Increase in accounts payable (34,868) 18,931 (Decrease)/Increase in other payables 13,473 -
(300,386) 238,684
December 2013 December 2012 January 2012
8. Other Payables N’000 N’000 N’000
13,473 - -
This comprises withholding tax liability for December 2013 remitted in January 2014.
Notes to the financial statementFor the year ended 31 December 2013
9. Contingent Liabilities
Contingent liabilities represent possible obligations that arise from past event whose existence will be confirmed only by the occurence or non-occurence of
uncertain future events not wholly within the control of the Foundation.
The Foundation is subject to a claim based on a legal suit in the ordinary course of business. In the opinion of the Directors, based on legal advice, no material loss
is expected to arise from this claim.
63Annual Report 2013
Notes to the financial statementFor the year ended 31 December 2013
December 2013 December 2012 January 2012
10. Cash and cash equivalents N’000 N’000 N’000
Short term deposits 3,600,000 4,302,008 3,446,587
Call deposits 1,217,525 411,400 585,702
4,817,525 4,713,408 4,032,289
December 2013 December 2012 January 2012
11. Commitments N’000 N’000 N’000
The commitments as at the balance sheet date are as follows:
Approved and contracted with project partners 766,599 1,482,141 575,156
Approved but not contracted with project partners 1,341,489 844,143 1,497,350
2,108,088 2,326,284 2,072,506
December 2013 December 2012 January 2012
12. Prepayments N’000 N’000 N’000
291,213 405,179 56,255
Prepayments are advance payments to project partners.
64 MTN Nigeria Foundation
Notes to the financial statementFor the year ended 31 December 2013
13 Financial risk management and financial instruments
13.1 Introduction
Financial assets and financial liabilities are recognized 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: loans and receivables and financial liabilities depending
on the purpose for which the financial instruments were acquired.
Financial instruments comprise cash and cash equivalents, other receivables, interest receivables and accounts payable.
13.2 Risk profile
The Foundation’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the
financial performance of the Foundation.
The carrying value of financial instruments materially approximates the fair value.
Accounting classes and fair values Assets Liabilities
Loans & Receivables Amortised cost Total carrying amount
N’000 N’000 N’000
31 December 2013Current financial assetsOther receivables 12,177 - 12,177 Interest receivable 10,962 - 10,962 Cash and cash equivalents 4,817,525 - 4,817,525 4,840,664 - 4,840,664 Current financial liabilitiesAccounts payable - 110,613 110,613
- 110,613 110,613
65Annual Report 2013
Notes to the financial statementFor the year ended 31 December 2013
Accounting classes Assets Liabilities
Loans & Receivables Amortised cost Total carrying amount
N’000 N’000 N’000
31 December 2013Current financial assetsOther receivables 101,000 - 101,000 Interest receivable 26,614 - 26,614 Cash and cash equivalents 4,713,408 - 4,713,408 4,841,022 - 4,841,022 Current financial liabilitiesAccounts payable - 145,481 145,481 - 145,481 145,481
01 January 2012 Current financial assetsDonations receivable 111,850 - 111,850 Other receivables 101,000 - 101,000 Interest receivable 20,035 - 20,035 Cash and cash equivalents 4,032,289 - 4,032,289 4,265,174 - 4,265,174 Current financial liabilitiesAccounts payable 126,548 126,548 - 126,548 126,548
66 MTN Nigeria Foundation
Notes to the financial statementFor the year ended 31 December 2013
Financial risk management and financial instruments (continued)
13.3 Credit risk
Credit risk, or the risk of financial loss to the Foundation due to partners 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 2013 31 December 2012 01 January 2012
N’000 N’000 N’000
Donations receivable - - 111,850
Other receivables 12,177 101,000 101,000
Interest receivable 10,962 26,614 20,035
Cash and cash equivalents 4,817,525 4,713,408 4,032,289
4,840,664 4,841,022 4,265,174
Cash and cash equivalents
The Foundation’s exposure and the credit rating of its counter party is continuously monitored, reviewed and approved in accordance with the global standard
practice.
Interest receivables
The majority of the Foundation’s interest receivables are due from investments in short-term deposits where the risk of default is considered low.
Other receivables
The Foundation draws up a legally binding contract and also obtains letter of indemnity from project partners stating that the funds received will be used for the
purpose, which they were released for and that refunds will be done as stated in the contract.
Donations receivables
Donations receivable are funds already approved by the Foundation’s Board but yet to be moved from MTN Nigeria Communications Limited to the Foundation
because the board is yet to approve the specific project they should be applied to. Given the status of MTN Nigeria Communications Limited to the Foundation,
the management does not expect the counter party to fail to meet its obligations.
67Annual Report 2013
Financial risk management and financial instruments (continued)
Credit risk (continued)
13.4 Ageing and impairment analysis 31 Dec 2013 31 Dec 2013 31 Dec 2013 31 Dec 2012 31 Dec 2012 31 Dec 2012
N’000 N’000 N’000 N’000 N’000 N’000
Gross Allowance for Net Gross Allowance for Net impairment impairment
Neither past due nor impaired 23,139 - 23,139 127,614 - 127,614 Other receivables 12,177 - 12,177 101,000 - 101,000 Interest receivable 10,962 - 10,962 26,614 - 26,614
Notes to the financial statementFor the year ended 31 December 2013
13.5 Ageing and impairment analysis 1 January 2012 1 January 2012 1 January 2012
N’000 N’000 N’000 Gross Allowance for impairment Net Neither past due nor impaired 232,885 - 232,885 Donations receivables 111,850 - 111,850 Other receivables 101,000 - 101,000 Interest receivables 20,035 - 20,035
13.6 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.
13.7 Interest rate risk
Interest rate risk is the risk that the cash flow or fair value of an interest bearing financial instrument will fluctuate because of changes in market interest rates. Financial assets
that are sensitive to interest rate risk are cash and cash equivalents. The interest rates applicable to these financial instruments are on a fixed basis in line with those currently
available in the market.
68 MTN Nigeria Foundation
Notes to the financial statementFor the year ended 31 December 2013
N’000 N’000 N’000 N’000 N’000 N’000
Financial assetsCash and cash equivalent 4,817,525 - 4,713,408 - 4,032,289 - 4,817,525 - 4,713,408 - 4,032,289 -
Profile 31 December 2013 31 December 2012 1 January 2012 Fixed rate
instrumentsVariable rate instruments
Fixed rate instruments
Variable rate instruments
Fixed rate instruments
Variable rate instruments
Financial risk management and financial instruments (continued)
13.8 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.
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 liquid resources are available:
Carrying Amount
31 December 2013 31 December 2012 01 January 2012
N’000 N’000 N’000
Donations receivable - - 111,850
Other receivables 12,177 101,000 101,000
Interest receivable 10,962 26,614 20,035
Cash and cash equivalents 4,817,525 4,713,408 4,032,289
4,840,664 4,841,022 4,265,174
69Annual Report 2013
Notes to the financial statementFor the year ended 31 December 2013
Current Liabilities
31 December 2013
Accounts payable 110,613 - 110,613 - 110,613
110,613 - 110,613 - 110,613
31 December 2012
Accounts payable 145,481 - 145,481 - 145,481
145,481 - 145,481 - 145,481
01 January 2012
Accounts payable 126,548 - 126,548 - 126,548
126,548 - 126,548 - 126,548
Financial risk management and financial instruments (continued)
Carrying amount
Payable within 1 month or on
demand
More than 1 month but not exceeding
3 months
More than 3 months but not
exceeding 1 year
Total
N’000 N’000 N’000 N’000 N’000
14. 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.
70 MTN Nigeria Foundation
Notes to the financial statementFor the year ended 31 December 2013
14.1. Key management compensation: December 2013 December 2012
The remuneration paid to the directors of the Foundation are as follows: N’000 N’000
Fees 7,725 7,125
Other emoluments 10,197 10,423
Total 17,922 17,548
14.2. Gifts in kind
In addition to the 1% PAT donation of N2.1 billion (December 2012: N2.3 billion) to the Foundation, the following resources were provided by
MTN Nigeria Communications Limited in the year:
December 2013 December 2012
N’000 N’000Staff costs 137,538 136,816
Facilities CostsOffice space, Utilities 11,595 12,661
Administrative ExpensesTravel 1,363 - Professional fees 3,314 1,320 Others 2,607 2,276 Training 3,468 3,435
Gifts in kind are not recognised in the financial statements of the Foundation.
15. Events after reporting dateThe directors are not aware of any matter or circumstance arising since the end of the reporting period, not otherwise dealt with therein, which significantly affects the financial position or the result of the operation or cash flows for the year ended.
71Annual Report 2013
Other Requirements - Local LegislationThe year ended 31 December 2013
1. General informationMTN Nigeria Communications Limited (MTNN) has been at the forefront of the mobile telephone revolution in Nigeria since its inception in 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 (the “Foundation”) has therefore been established for the purpose of focusing MTN Nigeria’s efforts in terms of its Corporate Social Responsibility initiatives to help reduce poverty and foster sustainable development in Nigeria.
In September 2004, MTN Nigeria Communications Limited consulted with a diverse 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 a more focused strategy that targets three key areas of need, namely Education, Health and Economic Empowerment.
It is against this background that the MTN Nigeria Communications Limited Board resolved to make available up to 1% of its profit after tax annually to the “Foundation”, which was duly incorporated in July 2004. The Foundation’s programme of activities is supported by MTN Nigeria Communications Limited.
The address of the Foundation’s registered office is 4, Aromire Street, Ikoyi, Lagos.
December 2013 December 2012
N’000 N’0002. Other operating expenses The following items have been included in arriving at surplus of income over expenditure: Bank charges 119 176 General expenses 18,564 20,171 Professional fees 351 212 Audit fees 5,848 5,000 Directors remuneration 17,922 17,548 42,804 43,107
3. Directors’ Remuneration The remuneration paid to the directors of the Foundation is as follows:Fees 7,725 7,125 Other emoluments 10,197 10,423 17,922 17,548 Fees and other emoluments disclosed above include amount paid toThe chairman 2,700 2,700 The highest paid director 4,252 4,007
72 MTN Nigeria Foundation
Other financial informationFor the year ended 31 December 2013
N’000 N’000 N’000 N’000 N’000 Revenue 2,108,087 2,326,284 1,970,712 1,799,037 993,240 Expenditure 2,589,867 1,869,458 889,795 1,646,022 915,271 Interest Income 388,852 449,014 145,275 93,952 321,707 (Deficit)/surplus income over expenditure (92,928) 905,840 1,226,192 246,967 399,676
Assets employed:Current assets 5,131,878 5,246,201 4,032,289 2,806,098 2,559,131 Current Liabilties 124,086 145,481 - - - Net assets 5,007,792 5,100,720 4,032,289 2,806,098 2,559,131 Funds 5,100,720 4,194,880 2,806,098 2,559,131 2,159,455(Deficit)/surplus income over expenditure (92,928) 905,840 1,226,191 246,967 399,676
Total Funds 5,007,792 5,100,720 4,032,289 2,806,098 2,559,131
Note: Figures for 2012-2013 are stated in accordance with International Financial Reporting Standards (IFRS) while the figures for 2011, 2010 and 2009 are stated in accordance with Nigerian GAAP (Statement of Accounting Standards).
IFRSDecember
2013
IFRSDecember
2012
NGAAPDecember
2011
NGAAPDecember
2010
NGAAPDecember
2009
4. Five-Year Financial Summary
73Annual Report 2013
Map Showing Spread of MTN Nigeria Foundation Projects accross the country in 2013
Key
74 MTN Nigeria Foundation Design + Production; M2DC Limited - 08033058989