MTN’s decision to place former CEO Phuthuma Nhleko back at the helm is already paying off. The well-known industry figure has managed to secure extra time to negotiate with the Nigerian telecoms regulator, potentially signalling a reduction to an onerous US$5.2bn fine.
Nigerian telecoms regulator the NCC has extended today’s deadline for MTN (JSE:MTN) to pay a US$5.2bn fine incurred for failing to cut off unregistered phone lines.
The decision follows the interim appointment of former chief Phuthuma Nhleko, who last week took over from Sifiso Dabengwa in a bid to negotiate down the fine.
“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 said in a statement today.
MTN had indicated that, as it remained in talks with the regulator, it had not thought it had to meet the end of August deadline to switch off unregistered lines. Rivals Airtel and Etisalat did meet the deadline.
According to one industry source, MTN “has a history of not following the regulator” in Nigeria.