MTN Nigeria Fine Reduced By $1.8 Billion As CEO Resigns In Fallou

Fine payable by the end of December, Nigerian
regulator says
MTN's chairman will consider penalty, to consult
further
The Nigerian telecommunications regulator cut the
fine imposed on MTN Group Ltd. to $3.4 billion from
a record $5.2 billion and the chief executive officer
in the country quit as part of a wider management
shake-up at Africa’s biggest mobile-phone operator.
The shares gained 1.2 percent to 148.49 rand as of
9:32 a.m. in Johannesburg, valuing the company at
274 billion rand ($19.1 billion). The stock is still
down about 22 percent since the penalty was made
public on Oct. 26.
The Nigerian Communications Commission decided
to reduce the levy after considering a request from
the company, Johannesburg-based MTN said in a
statement on Thursday. MTN named Ferdi Moolman,
the former CEO of the company’s Iran unit and most
recently the chief financial officer of MTN Nigeria,
as head of the Lagos-based operations, replacing
Michael Ikpoki, who resigned.
The Nigerian regulator imposed the fine on MTN for
failing to meet a deadline to disconnect 5.1 million
unregistered subscribers. Group Chairman Phuthuma
Nhleko took an executive position in November and
led negotiations with the NCC after CEO Sifiso
Dabengwa quit.
Reduction Considered
Nhleko will “immediately and urgently re-engage with
the Nigerian authorities before responding formally,”
MTN said in the statement. “All factors having a
bearing on the situation will be thoroughly and
carefully considered before the company arrives at a
final decision.”
The initial fine of $5.2 billion was more than MTN’s
total sales in Nigeria in 2014 and the equivalent of
about 37 percent of the group’s total revenue. A full
payment would have exceeded the revenue the
Nigerian government made from oil in the second-
quarter, and more than double the state’s non-crude
proceeds, according to central bank data. MTN’s
largest shareholder, the Public Investment Corp., in
November called on the board to take greater
responsibility for the fine.
The company decided to reinstate its previous
reporting structures to boost oversight, leadership
and compliance across 22 countries in Africa and
the Middle East, the company said in a separate
statement. Jyoti Desai will be group chief operating
officer, based in Johannesburg, while Karl Toriola
will be vice president for the West and central
African region and Ismail Jaroudi will play the same
role for the Middle East and north Africa. Amina
Oyagbola replaces Akinwale Goodluck as head of
regulatory and corporate affairs in Nigeria.