MTN group CEO Sifiso Dabengwa has travelled to Nigeria for negotiations with senior officials about the US$5.2 billion fine imposed on the telco for failing to disconnect unregistered SIM cards.
"Engagements with the Nigerian authorities are continuing and any material developments in these engagements will be communicated to shareholders," said MTN, in a statement.
According to a ThisDay report on Tuesday, Dabengwa is expected to meet with Umaru Garba Danbatta, executive vice chairman of the Nigerian Communications Commission (NCC), the telco regulator that issued the fine. He is also expected to meet the president’s national security advisor, Major-General Babagana Monguno, and chief of staff Alhaji Abba Kyari.
Details are scarce about what Dabengwa hopes to achieve, but ThisDay and the BBC both claim that he aims to have the penalty reduced.
Last week, the NCC fined MTN Nigeria for failing to disconnect 5.1 million unregistered SIM cards in accordance with the regulator’s timeline. The telco was fined 200,000 naira (approximately $1,000) for every SIM, leaving it with a total bill in excess of NGN1 trillion.
MTN Nigeria has until 16 November to pay the penalty.
The news has sent MTN’s share price tumbling, prompting a temporary trading suspension on the Johannesburg Stock Exchange (JSE) on Monday. Trading resumed later the same day after MTN issued a cautionary statement relating to MTN Nigeria’s woes.
"Shareholders should specifically exercise caution when reacting to information on this matter which has not been released by the company," MTN said.
Licence renewal
Meanwhile, in a separate statement on Tuesday, MTN announced its Nigerian arm has paid $94.2 million to extend its 900 MHz and 1800 MHz licences.
The concessions were due to expire in February 2016, but will now run until 31 August 2021.
