The MTN Group yesterday said it was making arrangements to pay the $3.9 billion fine slammed on it by the Nigerian Communications Commission, NCC, over its failure to comply with a directive on SIM card registration, into government coffers.
The Group, in press statement issued in South Africa, confirmed that it was engaging the relevant authorities in Nigeria over the $3.9 billion even as it expressed optimism on reaching a conclusion on the matter in the short-term.
The Executive Chairman, MTN Group, Phuthuma Nhleko noted that the telecoms company will continuously monitor developments with regards to the fine and review the adequacy of the provision at the end of the reporting period.
He disclosed that by the end of June at the latest, a new MTN Group Chief Executive Officer will be announced, and that the company has made provision for the fine in its financial results for the year ended 31 December 2015.
Nhleko who has been holding fort since November 2015, when Sifiso Dabengwa, the former Group CEO resigned, said that the search for a new MTN Group CEO “is well under way” and the company hopes to make an announcement by the end of next month “at the latest”.
“The group took an exceptionally conservative stance related to the disconnection of subscribers that were deemed non-compliant, to mitigate future regulatory challenges.”
Since the telecos got into the fine saga last year, it has had several challenges in Nigeria as well as in South Africa where the company is quoted in the stock market.
During the first four months of 2016, MTN Nigeria’s organic revenue was down six percent yearly, according to its annual report.
The company said that it was mainly due to uncompetitive pricing arising from the suspension of regulatory services and regulatory restrictions that obliged operators to seek permission from customers to charge out-of-bundle rates upon the depletion of data bundles.
Also MTN Nigeria’s data revenue also declined 12 percent mainly due to the withdrawing of regulatory services; however its data traffic increased by 27 percent yearly supported by the continued improvements made to the data network.
