MTN Nigeria is yet to comment on the events that unfolded following communication from the Nigerian Communications Commission (NCC) that alluded to a typo for the erroneous figure of the adjusted fine. NCC had written to MTN stating that the penalty had been reduced from USD 5.2bn to USD 3.4bn; less than 72 hours later, the Nigerian authorities wrote back to MTN stating that the reflected was less that what it and that the mistake was a typing error. This company is now expected to pay USD 3.9bn.
The commission fined MTN $5,2 billion last month following the company’s failure to disconnect up to five million unregistered sim cards.
Following fine, the Johannesburg Stock Exchange (JSE) temporarily suspended trade in the firm’s shares as the stock fell as much as 8%. Following signs that Africa’s largest telecomm was engaging with the Nigerian authorities with a potential positive outcome, the stock price steadily rose. However, the stock price has dropped by 5% following this new development. The stock market has clearly felt the impact of the USD 500million typo.
South Africa’s local media reports that NCC has explained that a ‘typo’ was responsible for the incorrect amount being stated in a document sent to MTN and the company will have to pay $500 million more than the original revised amount. The total reduction, according to NCC should have been 25%.
The fine saga has led to the resignations of the group and country CEOs.