The MTN Group announced on Thursday that the Nigerian Communications Commission (NCC) has slashed the N1.4 trillion fine slammed on it to N674 billion.
This was contained in a statement issued by the company on Thursday. The organisation also announced the resignation of its Nigeria CEO, Michale Ikpoki as well as the head of Regulatory and Corporate Affairs, Akinwale Goodluck.
The company’s statement reads:
The Nigerian Communications Commission (NCC) reduces imposed fine to US$3.4 billion equivalent and further cautionary announcementSouth Africa | 3/12/2015
Shareholders are advised that, after further engagements with the Nigerian Authorities, the NCC has reduced the imposed fine.
MTN has received a formal letter dated 2 December 2015 from the NCC informing the Company that, after considering the Company’s request, it has taken the decision to reduce the fine on the MTN Nigerian business from the original N1,040,000,000,000 (One Trillion, Forty Billion Naira) to N674 Billion Naira which has to be paid by 31 December 2015. The fine relates to the late disconnecting of 5.1 million MTN Nigeria subscribers in August and September 2015.
The Company is carefully considering the NCC’s reply, however the Executive Chairman Phuthuma Nhleko will immediately and urgently re-engage with the Nigerian Authorities before responding formally, as it is essential for the Company to follow due process to ensure the best outcome for the Company, its stakeholders and the Nigerian Authorities and accordingly all factors having a bearing on the situation will be thoroughly and carefully considered before the Company arrives at a final decision.
Shareholders are therefore advised to continue to exercise caution when dealing in the Company’s securities until a further announcement is made.
– Issued by MTN Group Corporate Affairs
The reduction of the fine comes after protracted negotiations between the firm and the Nigerian authorities which fined it for not disconnecting about 5.1 million unregistered MTN Nigeria subscribers in August and September 2015.
As regards the resignation of Ikpoki and Goodluck, the statement, “they are replaced by Ferdi Moolman as MTN Nigeria CEO and Amina Oyagbola as its head of Regulatory and Corporate Affairs. Mr Moolman who was previously COO at MTN Irancell and most recently CFO at MTN Nigeria.