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Phuthuma Nhleko plans to step down from his post next month, according to an unnamed source; telco denies media speculation it has already reached agreement with NCC.
MTN is close to reaching agreement with Nigerian authorities over the hefty fine it incurred last year, as evidenced by the fact that its interim CEO is preparing to step down, according to press reports on Tuesday.
Phuthuma Nhleko, who took on the executive chairman role on a temporary basis after the resignation of then-CEO Sifiso Dabengwa in November, is making plans to leave his post next month, Bloomberg claimed, citing a source familiar with the situation.
That is a sign he is confident the fine debacle will be resolved soon, the source said, since Nhleko has pledged to retain his operational role until he has come to an agreement with Nigeria’s attorney general.
When he took on the task, Nhleko said he would hold the executive chairman role for six months, a period that is due to come to an end in early May.
The Nigerian Communications Commission (NCC) slapped MTN with a US$5.2 billion fine in October for failing to disconnect unregistered SIM cards in accordance with its timetable.
After reported attempts to resolve the situation, group CEO Dabengwa tendered his resignation.
The NCC later reduced the fine to $3.9 billion.
There have been various rumours of a resolution over the past few months, but MTN has repeatedly urged shareholders to exercise caution when reacting to media reports on the subject.
On Monday the telco issued a new, similar statement, this time explicitly denying that it has reached agreement with the regulator.
"The company has noted, with concern, the speculation and false information in the media," it said.
"MTN particularly cautions against reports purporting that the company has agreed a resolution with the NCC on the fine," the company added. "It is false as no resolution has yet been reached. MTN continues to engage the authorities in Nigeria on this matter."
MTN reiterated that it is still engaging with various authorities on the matter.
