Nigeria’s telco regulator has explained its decision to reduce the multi-billion dollar fine imposed on MTN Nigeria for failing to disconnect unregistered SIM cards.
In a report by Vanguard on Tuesday, the Nigerian Communications Commission (NCC) said it took into consideration several factors, including the operator’s admission of guilt and the contribution the operator has made to the sector.
"We are aware and conscious of the level of investment MTN has made in this market; they have the largest number of subscribers. It is also important to know that Nigeria remains their biggest market," said Tony Ojobo, the NCC’s director of public affairs, in the report.
Indeed, MTN is by far the largest mobile operator in Nigeria, serving 62.5 million customers at the end of September, according to the NCC’s most recent figures. Second-placed Glo Mobile has 31.3 million customers.
MTN Nigeria was fined in late October after failing to disconnect 5.1 million unregistered SIM cards in accordance with the NCC’s timeline. The telco was fined 200,000 naira (approximately US$1,000) per subscriber, leaving it with a total bill of $5.2 billion.
Last week, the fine was reduced to $3.4 billion but then it was almost immediately increased again to $3.9 billion after the NCC put the wrong figure in its first letter to MTN Nigeria.
"There was a mistake in [the] figure of the first letter which immediately prompted the second one," said Ojobo in Tuesday’s Vanguard report.
For its part, MTN said it is carefully considering both letters, and that executive chairman Phuthuma Nhleko will "urgently re-engage" with Nigeria’s authorities.
