The telecoms industry regulator, Nigerian Communications Commission (NCC) said on Friday it had cut the N1.04tr fine on South Africa’s MTN Group by 25 percent to N780 billion ($3.9bn), and blamed a typing error for the announcement on Thursday that it had reduced the penalty by 35 percent to N674 billion ($3.4 billion).
NCC hit MTN with a $5.2 billion penalty in October for failing to disconnect 5.1 million users with unregistered SIM cards, prompting weeks of lobbying by Africa’s biggest mobile phone company to get the fine reduced.
After announcing on Thursday that the NCC had cut the fine by 35 percent to N674 billion, MTN said on Friday it had received a second letter saying the regulator had in fact intended to lower the fine to N780 billion.
“The information that was conveyed to them initially said 35 (percent reduction) but it was 25. It was a typo,” NCC spokesman Tony Ojobo said.
Nigeria has been pushing telecoms firms to verify the identity of subscribers amid worries unregistered SIM cards were being used for criminal activity in a country facing the insurgency of militant Islamist group Boko Haram.
MTN makes about 37 percent of its revenue from Nigeria, and a reduced fine of $3.9 billion would still equate to more than twice its annual average capital spending over the past five years.
Its shares, which have plunged more than a quarter since the fine was announced on October 26, closed down 3 percent at 135.74 rands.
“The regulator exercised its discretionary powers based on consultations with the Federal Government and other stakeholders,” Ojobo said, when asked why the fine was reduced.
He added no decision had been taken on whether MTN would be permitted to pay in instalments.
Ojobo said MTN had two weeks, starting from December 3, to respond to the NCC’s penalty reduction.
MTN said NCC had given it until the end of the year to pay the fine.
“Neither the first letter nor the second letter sets out any details on how the reduction was determined,” MTN said, adding that its Chairman, Phuthuma Nhleko, would immediately hold talks with Nigerian authorities before responding.
The fine came months after Muhammadu Buhari swept into power in Africa’s biggest economy, after a campaign in which he promised tougher regulation and a fight against corruption.
-Reuters