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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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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.


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


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


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


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)



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.


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


1

2

3

4

5

6

7

8

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



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


For the year ended 31 December 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



Nonny Ugboma - Executive Secretary

Executive SecretaryA Detailed Report from our


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


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



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.


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


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


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



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


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:


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


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/



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



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



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


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/


Persons with Disabilities


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.


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.



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



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



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


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



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



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


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.


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


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.


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


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.



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



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


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


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



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


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.


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.


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 )


Statement of Financial Positionat 31 December 2013


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



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



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.


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.


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


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


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


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


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


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


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


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.



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


First-time adoption of IFRS (continued)

1.1 Reconciliation of funds as at 1 January 2012 (date of transition to IFRS)


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


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


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


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).


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.


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.




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


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


12. Prepayments N’000 N’000 N’000

291,213 405,179 56,255

Prepayments are advance payments to project partners.



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



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



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.



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


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.



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


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



Current Liabilities

31 December 2013

Accounts payable 110,613 - 110,613 - 110,613

110,613 - 110,613 - 110,613

31 December 2012


145,481 - 145,481 - 145,481

01 January 2012


126,548 - 126,548 - 126,548


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.



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.


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


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


Map Showing Spread of MTN Nigeria Foundation Projects accross the country in 2013

Key

74 MTN Nigeria Foundation Design + Production; M2DC Limited - 08033058989

Documents

Partnershipsfoundation.mtnonline.com/sites/default/files/u60/MTNF A… · · 2015-02-13Our intention at MTN Foundation is to harness that innate power of partnerships ... roles