MTN Nigeria Communications Plc has initiated an investigation into the activities of its Chief Marketing Officer (CMO), Ms. Adia Sowho, who is accused of misappropriating part of the N5 billion allocated for the commercial launch of the company’s 5G network in 2022.
The investigation led to Ms. Sowho’s resignation last week, a move many believe was aimed at avoiding potential indictment and dismissal for corruption.
In September 2022, MTN launched its 5G network in Lagos, marking a new era of fast-speed internet connectivity in the country. However, shortly after the launch, internal auditors discovered that portions of the funds designated for launch and marketing activities were misappropriated through inflated contracts and other means.
Adia Sowho, who became CMO in 2021, is under investigation after it was found that she had been procuring services from contractors at significantly higher rates than those used prior to her appointment.
A former employee of MTN’s marketing department, who resigned and relocated overseas, spoke with Sahara Reporters under anonymity, revealing that Sowho has been accused by her team of changing contractors for several services and attempting to impose her own associates as suppliers.
The source stated, “MTN previously worked directly with a contractor called TRANSSION for digital campaigns. Adia Sowho tried to force the marketing team to switch to a vendor called Hippo AD. This would have been more expensive for MTN, as Hippo AD would still have to work with TRANSSION to provide the services effectively in Nigeria. This was an attempt by Sowho to introduce an unnecessary middleman. Fortunately, the media team resisted, and the plan fell apart. She has since made efforts to punish those who opposed it.”
The source also revealed a specific instance: “When the Consumer Marketing team wanted to run a campaign for ‘Blow My Hustle,’ they approached her with a budget of just over N30 million. However, she attempted to increase the budget to over N100 million and directed the funds to her preferred contractors. When the team resisted, she threatened to approve only N7 million, which would have been insufficient to complete the campaign. Ultimately, the team gave in.”
In another instance of alleged mismanagement, the source mentioned, “Sowho instructed the CVM team to pay a vendor for sending bulk SMS to a target audience, despite the fact that the team previously sent SMS messages directly to customers at no cost. After resisting, the team was forced to pay a company called ‘Out There Media’ over N50 million for an SMS blast. This unnecessary expenditure was a waste of company resources and a mismanagement of shareholder investment.”
Additionally, it’s alleged that Adia Sowho colluded with MTN contractor SPV Communications to inflate their invoices for marketing activities. According to sources, since her arrival, marketing costs for even simple services have surged.
“Sowho has also introduced McKinsey consultants without following proper procedures, resulting in billions of naira in unnecessary costs. McKinsey has failed to provide any new insights for the business. At the time I left, and even today, colleagues who remain at MTN report that McKinsey’s suggestions in marketing were merely reiterations of strategies already in place,” the source added.
