Nigeria authorities would not demand payment of $5.2b fine till after negotiations – MTN

MTN says the Nigerian authorities would not demand payment of the $5.2 billion imposed on the company for failing to disconnect about 5.1 million unregistered subscribers on the stated deadline until ongoing negotiations are completed.

The Nigerian Communications Commission gave MTN Nigeria up to today Monday November 16, 2015 to settle the fine.

A statement from MTN says, “Although the Nigerian Communications Commission set a deadline for payment of the fine by Monday, 16 November 2015, 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.”

MTN lost almost a quarter of its share value since the fine was announced on October 26, and its CEO, Sifiso Dabengwa resigned last week. He was said to have managed the Nigeria office in the past.

Following the fine, the ratings agency, Moody’s on October 29, downgraded MTN’s Baa2 ratings from stable to negative.

MTN had appointed a former CEO, Phuthuma Nhleko as executive chairman for six months to negotiate with the Nigerian authorities.

By Emmanuel K. Dogbevi