South African telecommunication company, MTN appears to have gotten a temporary reprieve on the $5.2 billion fine imposed by the Nigerian federal government, on the company.
For failing to deactivate 5.1 million unregistered SIM cards, the Nigerian Communications Commission (NCC) penalised MTN a few weeks ago.
The fine heavily affected the telecommunication company, as their share price nosedived, while the company’s Chief Executive Officer, Sifiso Dabengwa, resigned.
The deadline for payment of the fine was today, Monday, November 16, but the company announced a few hours ago that the NCC had agreed to give them more time.
Consequently, the fine will not be payable until the end of negotiations entered into by acting executive chairman Phuthuma Nhleko.
“Shareholders are advised that the executive chairman of the company, Mr Phuthuma Nhleko, has personally met with the Nigerian authorities to continue the ongoing discussions with them regarding the fine.”
“These discussions include matters of non-compliance and the remedial measures that may have to be adopted to address this.
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.”