MENU

MTN fine cut to $3.9bn by NCC

December 3, 2015 • Mobile and Telecoms, Southern Africa, Top Stories, West Africa

MTN

Nigerian CEO, has handed in his resignation with immediate effect.

According to a report via fin24.com, MTN has stated that the Nigerian Communications Commission (NCC) had agreed to cut the fine to $3.4bn and that this penalty needs to be paid by December 31 2015.

According to the report, the company has also announced in a statement on Thursday morning that Michael Ikpoki, its Nigerian CEO, has handed in his resignation with immediate effect. MTN Nigeria’s head of regulatory and corporate affairs, Akinwale Goodluck, has also resigned.

The official statement from MTN can be found below:

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 Nigerian 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.

Update:
According to a report via the BBC, the fine was reduced to $3.9bn. According to the BBC, the Nigerian Communications Commission (NCC) initially said the $5.2bn fine had been reduced to $3.4bn; however, NCC spokesman Tony Ojobo says the correct amount is $3.9bn (£2.5bn).

Staff Writer

Comments

comments


Comments are closed.

« »