The CEO MTN Group Sifiso Dabengwa has arrived in Nigeria to discuss with the Federal Government over the N1.04trn fine imposed on the telecom firm by the Nigerian Communications Commission (NCC) for violate its directive on SIM deactivation.
Dabengwa, who served as CEO of MTN Nigeria between 2004 and 2006, is expected to meet with the NCC Executive Vice Chairman, Umaru Garba Danbatta, National Security Adviser, Major-General Babagana Monguno (rtd.), and Chief of Staff to the President, Alhaji Abba Kyari, to negotiate a soft landing for the company.
Nigeria is MTN’s greatest business sector with 62 million clients as of September. The stock has declined more than a fifth since news of the punishment was accounted for a week ago, and is exchanging at around three-year lows.
They could likewise confront an investigation from the JSE to figure out if it, in addition to other things, neglected to advise the business sector timeously about its fine in Nigeria.
The fine was announced early last Monday but MTN informed shareholders only later that day, saying the fine was related to the “timing” of the disconnection of subscribers.
Under South African capital markets rules, companies are required to immediately warn shareholders of any materially price-sensitive information.
MTN is Africa’s largest mobile operator, with 233 million subscribers across the continent, with large market share in South Africa and Nigeria. It also has a large presence in the Middle East.
However, its stock began to tumble last week following a $5.2 billion (N1.04trn) fine by Nigerian regulators for not disconnecting up to five million unregistered SIM cards.