The Chief Executive Officer of MTN Nigeria Sifiso Dabengwa has resigned his position with immediate effect, no thanks to the humongous fine on the company’s Nigeria’s operation by the Nigerian government.
The company has been battling to no avail get the Nigerian government to rescind the fine or to cut it down substantially. The company was fined $5.2 billion for failing to disconect 5.1 million unregistered lines, which the country said posed security risks to Nigeria.
Dabengwa had reportedly been in Nigeria to lead the push to change the huge fine, which has been unprecedented in this jurisdiction.
According to the CEO, he resigned “in the interest of the company and its shareholders”.
The fine, which amounts to double MTN’s profit last year, was for failing to cut off unregistered mobile users.
The firm was given until November 16, just two weeks, to pay the penalty.
“Due to the most unfortunate prevailing circumstances occurring at MTN Nigeria, I, in the interest of the company and its shareholders, have tendered my resignation with immediate effect,” said Mr Dabengwa in a statement.
He had been in the post since 2011.
Non-executive chairman Phuthuma Nhleko has been appointed executive chairman for a maximum of six months while the company looks for a successor.
It is thought that the Nigerian government imposed the fine after the kidnapping of a former finance minister, Chief Olu Falae.
The kidnappers used an unregistered Sim card from MTN to demand a ransom.
Nigeria is MTN’s biggest market, with 28.5 million subscribers, followed by Iran and South Africa.
BBC.
