MTN chief executive Sifiso Dabengwa resigned on Mo nday, a direct consequence of the US$5.2 billion fine imposed on the telco’s Nigerian operation.
In late October, the Nigerian Communications Commission (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 (US$5.2 billion).
According to reports last week, Dabengwa travelled to Nigeria to discuss the situation with with senior officials.
"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 Dabengwa, in a statement on Monday.
MTN has appointed non-executive chairman and former CEO Phuthuma Nhleko as executive chairman for the next six months. His first priority will be to deal with the urgent situation in Nigeria, he said in a statement.
MTN Nigeria has until 16 November to pay the fine.
"My second priority will be to find an appropriate chief executive officer to take MTN forward. I will then revert to my non-executive chairman role," Nhleko said.
