MTN Cries Out Over NCC N1.4trn Penalty

Three days after Nigerian Communications Commission, NCC slammed a N1.4 trillion penalty on MTN Nigeria for failure to disconnect customers with unregistered SIM cards, Parent company MTN group has cried out that the fine was too extreme, even as it continues to engage the regulator on how to resolve the issue.

MTN Group noted with dismay that Nigerian Communications Commission refused to listen to its plea to reconsider its stand on the penalty slammed on its Nigerian arm last week.

According to a report, MTN Nigeria spokeswoman, Chineze Gbenga-Oluwatoye, had said in an e-mailed response, that “recommendations were put forward with respect to the non-commensurable nature of the fine but the Nigerian Communications Commission did not accept recommendations that the fine of 200,000 Naira ($1,005) per SIM was too heavy.”

‘‘MTN Nigeria contacted the regulator with concerns that a demand to disconnect SIM cards by a certain deadline would cause “severe disruption” for customers and recommended a staggered process to limit the possible impact,’’ said Oluwatoye.

As a result of the fine, MTN shares plummeted about 20 percent this week in Johannesburg. The biggest four-day drop since 2008, valuing the company at about 284 billion rand ($21 billion).

A MTN service provider tries to register a client's SIM card in Lagos, on October 27, 2015. Nigeria's telecommunications regulator has fined South African mobile giant MTN $5.2 billion for missing a deadline to disconnect unregistered SIM cards, the company announced on Monday. The penalty saw shares in Africa's largest telecommunications company crash more than 12 percent to 167 rand on the Johannesburg Stock Exchange, the biggest fall the firm has suffered in a day since November 1998.

Nigeria’s telecommunications regulator has fined South African mobile giant MTN $5.2 billion for missing a deadline to disconnect unregistered SIM cards, the company announced on Monday. The penalty saw shares in Africa’s largest telecommunications company crash more than 12 percent to 167 rand on the Johannesburg Stock Exchange, the biggest fall the firm has suffered in a day since November 1998.

The phone operator had said on Monday that the Nigerian Communications Commission is seeking the penalties because it missed a deadline to disconnect 5.1 million subscribers and is reviewing its management in the country.