The Nigerian authorities imposed a fine of 5.2 billion US dollars on MTN – the largest mobile operator in Africa for failing to disconnect 5.1 million subscribers with unregistered or incomplete SIM cards in Nigeria.
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MTN Group Ltd in South Africa is making a few moves to get the $5.2 billion fine imposed by the Nigerian Communications Commission (NCC) reduced by as much as 80 per cent and it is considering borrowing money from banks to help settle the penalty, should its request for fine reduction sail through.
The scale of the fine, which MTN has been given until 16 November to pay, is devastating. He said Nigeria’s four cellphone service providers signed an agreement that set the fines in 2011 and MTN was the only company not to comply.
MTN must follow the rules in countries where it does business, South African Deputy President Cyril Ramaphosa said, according to a Naija247News report.
But despite all of these several engagements, the commission confirmed various cases of violations of the regulations against MTN and sanctioned appropriately.
Launched in 1994 in South Africa, MTN has 233 million subscribers in Africa, Asia and the Middle East, according to the company.
Shares in MTN traded 4.7 percent higher Wednesday after dropping about 20 percent since the fine was announced last week.
Adekola does not agree with chatter that had MTN been listed on the Nigerian Stock Exchange, then it would not have been fined because other listed companies have been fined, however not to the same magnitude, he admits.
“Cabinet trusts that the discussions under way between MTN and Nigerian authorities will result in the speedy resolution of the disputes so as to ensure MTN continues its business of investing in the Nigerian economy”.
“This issue does not affected the cordial relations between Nigeria and South Africa”. “On the face of it, this fine seems seriously over the top”.
“Since launching more than a decade ago, we have made significant investments in connecting customers to our network”.
Nigerian Vice President Yemi Osinbajo late Thursday denied that he is heading the Nigerian team negotiating with MTN executives from South Africa, as the AP erroneously reported.
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Relations between South Africa and Nigeria went through a rocky patch past year after delays in the repatriation of bodies of South Africans killed when a building of preacher TB Joshua’s Synagogue Church of All Nations collapsed in September.
