MTN Group CEO Arrives Nigeria to Negotiate with FG on N1trn Fine

MTN Group CEO  Sifiso Dabengwa

MTN Group CEO  Sifiso Dabengwa  has arrived in Nigeria to negotiate with the Federal Government over the N1.04trn fine imposed on the telecom firm by the Nigerian Communications Commission (NCC) ) for violating its directive on SIM deactivation.

Dabengwa, who led a powerful team from South Africa, is currently in Abuja where he will be engaging Nigerian authorities concerning the company’s fine.

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.

“Any material developments in these engagements will be communicated to shareholders,” a statement from the company issued Monday stated.

MTN has until November 16 to pay the fine, which relates to the timing of the disconnection of 5.1 million subscribers and is based on a charge of N200,000 for each unregistered customer not disconnected from its network.

Trading in MTN shares resumed yesterday on the Johannesburg Stock Exchange (JSE) after the telecoms firm issued a cautionary statement on its shares. JSE had temporarily suspended trading in MTN Group shares after the company’s stock tumbled last week following a $5.2bn fine by the Nigerian Communications Commission (NCC) for violating its directive on SIM deactivation.

JSE Director, Issuer Regulation, John Burke, had stated that “The JSE has halted all trading on MTN Group Limited. Trading will resume as soon as MTN Group Limited issued a SENS announcement."

In a statement later, MTN Group Executive for Corporate Affairs, Chris Maroleng, said: "We take note of the JSE's decision to suspend MTN's shares.”

Trading in the shares later resumed after MTN issued the cautionary statement.

After declining by about 20 per cent last week, the company’s shares dipped further by about eight per cent Monday.

Credit rating agencies Fitch and Moody’s have lowered MTN’s credit rating outlook to "negative" from "stable", citing the regulatory fine. Standard & Poor’s also lowered the group to "BBB-" from "BBB" and placed it on credit watch with negative implications.