Corporate News
MTN was fined by the Nigerian Communications Commission (NCC) at the end
of October for not disconnecting 5.2 million unregistered users from
its network. PHOTO | FILE
In Summary
- Nigeria has been pushing telecoms firms to verify the identity of subscribers amid worries unregistered SIM card s were being used for criminal activity in a country facing the insurgency of Islamic militant group Boko Haram.
Nigeria has cut a fine imposed on MTN Group by more
than a third to $3.4 billion and given the South African mobile phone
operator until the end of the year to pay it, the company said on
Thursday.
The Nigerian Communications Commission handed Africa's
biggest mobile phone company the penalty in October after MTN failed to
cut off users with unregistered SIM cards from its network.
Nigeria, MTN's biggest market, has been pushing
telecoms firms to verify the identity of subscribers amid worries
unregistered SIM cards were being used for criminal activity in a
country facing the insurgency of Islamic militant group Boko Haram.
The fine, originally $5.2 billion, prompted MTN to hold talks with the NCC over the past five weeks seeking a reduction.
"After further engagements with the Nigerian authorities, the NCC has reduced the imposed fine," MTN said in statement.
The company, which makes about 37 per cent of its sales from Nigeria, said it was considering the NCC's decision.
"Executive Chairman Phuthuma Nhleko will
immediately and urgently re-engage with the Nigerian authorities before
responding formally," it said.
Nhleko, who took charge for up to six months after
the abrupt resignation last month of Sifiso Dabengwa, led the company
for nine years before stepping down in 2011.
The fine came months after Muhammadu Buhari swept
to power in Africa's biggest oil producer, after a campaign in which he
promised tougher regulation and a fight against corruption.
It also came after the kidnapping on Sept. 21 of
Olu Falae, former Nigerian finance minister, by people whom the
regulator said had used MTN phone lines to negotiate a ransom.
Some analysts have said the size of the fine risked
damaging Nigeria's efforts to shake off its image as a risky frontier
market for international investors. Others said the fine showed Africa's
biggest economy was keen to enforce the law.
Separately, MTN announced a shake-up of its senior
management structure in an effort to strengthen oversight, governance
and regulatory compliance across its operations in 22 countries in
Africa and the Middle East.
MTN's Nigeria head Michael Ikpoki and the head of
regulatory and corporate affairs Akinwale Goodluck have resigned with
immediate effect, MTN said.
The company named Jyoti Desai, a 14-year veteran of
the Johannesburg-based firm, as chief operating officer with effect
from Dec. 1. Desai's replacement as Group Chief Technology and
Information Officer will be announced soon, MTN said.
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