ABUJA, Federal Republic of Nigeria. Nigeria has extended an olive branch to the troubled African mobile phone giant MTN, allowing more time for talks about a huge fine.
The South African-based telecom group faces a fine of $5.2bn (£2.7bn) by the regulators in Nigeria for failing to deactivate five million unregistered Sim cards, a necessary security measure in the fight against militants Islamists.
MTN Group, through their Chairman Phuthuma Nhleko, said on Monday, 16 Nov. 2015, that: “Shareholders are advised that the Nigerian authorities have, without prejudice, agreed that the imposed fine will not be payable until the negotiations have been concluded.”
Nigeria recognises the huge fine could derail MTN’s business and the extension of today’s deadline signals the prospect that the penalty could be reduced.
However, investors in the company who have watched their shares plunge up to 20% will want to see MTN get more serious about shaking up the top management.
MTN chairman Phuthuma Nhleko is currently taking care of the chief executive’s job as the company searches for a new permanent one.
Mr Nhleko led MTN for almost nine years until 2011 and successfully increased subscriber numbers through rapid international expansion, but he is also responsible for the phone giant’s lapses in Nigeria.
With more than 200 million customers in 22 countries in Africa, Asia and the Middle East, MTN has great prospects.
However, investors will need reassurance that it can convince the Nigerian authorities to cut the fine allowing it to revive its business there and perhaps equally important that a similar problem is not hiding in the shadows with subsidiaries in other emerging markets.
Credit: BBC / Unic Press UK
