MTN confirms $5.2bn fine in Nigeria

MTN logo. (Duncan Alfreds, Fin24)
MTN logo. (Duncan Alfreds, Fin24)

Johannesburg - Africa’s biggest mobile network MTN [JSE:MTN] confirmed on Monday afternoon that it’s been fined $5.2bn in Nigeria for failing to disconnect unregistered subscribers.

On Monday morning a report in Nigeria's Leadership newspaper on the fine sparked a sell-off of MTN shares on the Johannesburg Stock Exchange (JSE).

The report detailed how MTN is facing a one trillion naira fine from the Nigerian Communications Commission (NCC) for the alleged transgression, making it one of the biggest penalties ever for a telecommunications operator in West Africa.

And, subsequently, MTN in a market update confirmed the report.

“Shareholders are advised that the NCC has imposed a fine equivalent to US$5.2 billion on MTN Nigeria,” said MTN in a statement to shareholders.

“This fine relates to the timing of the disconnection of 5.1 million MTN Nigeria subscribers who were disconnected in August and September 2015 and is based on a fine of N200 000 for each unregistered subscriber,” said the company.

MTN further said it is in discussions with the NCC in a bid to resolve the matter.

Meanwhile, MTN’s share price fell sharply by over 8% in trade on Monday in Johannesburg to R171 at 14:40.

Nigeria is MTN’s biggest market with over 60 million subscribers, according to the company’s latest quarterly update.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
14.13
-0.0%
Rand - Pound
19.92
-0.0%
Rand - Euro
17.16
-0.0%
Rand - Aus dollar
11.00
-0.0%
Rand - Yen
0.13
-0.0%
Gold
1,843.76
0.0%
Silver
27.42
0.0%
Palladium
2,894.50
0.0%
Platinum
1,229.50
0.0%
Brent Crude
68.71
+2.5%
Top 40
60,573
+0.6%
All Share
66,598
+0.7%
Resource 10
69,386
-0.1%
Industrial 25
83,277
+0.9%
Financial 15
12,685
+1.5%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 1452 votes
No, I did not.
52% - 3625 votes
My landlord refused
27% - 1924 votes
Vote