An MTN billboard in Abuja, capital of Nigeria. The telecoms giant has been slapped with a $5.2-billion fine – by far the harshest penalty the Nigerian Communications Commission has yet imposed on a company – which has seen its share price nosedive.
Image: REUTERS
Image: REUTERS
MTN has enlisted the help of the South African government and is meeting with Nigerian officials “at the highest level” as it moves to fight off a $5.2-billion (about R72-billion) fine by the Nigerian Communications Commission, news of which wiped R64-billion off its market value in three days this week.
A high-level MTN management delegation, led by group CEO Sifiso Dabengwa, has flown to Nigeria for emergency talks with authorities over the fine, which threatens to wipe out MTN’s cash reserves and puts its dividend in jeopardy.
The Nigerian Communications Commission (NCC) fined Africa’s largest telecoms firm for missing a deadline to deactivate 5.1 million unregistered SIM cards.
News of the fine broke Monday morning in Nigeria, sparking a sell-off of MTN shares before the company formally notified shareholders later in the day.
