MTN trying to reduce $5.2 billion fine
By now we surely all know about the $5.2 billion penalty that Nigeria's Communications Commission, the country's telecoms regulator, issued MTN following the company's failure to disconnect customers with unregistered SIM cards. In the latest news, MTN Group is trying to reduce the fine by as much as 80%. It is even considering borrowing money from various financial institutions to help settle the penalty.
- Read our full article on the Nigerian Communication Commission's fine here.
The Associated Press spoke to Tony Ojobo, the spokesman for the Nigerian Communications Commission. They reported that he said the regulator will not buckle to pressure from MTN shareholders to reduce the fine.
Repercussions of the fine are far-reaching. MTN recently listed its empowerment share scheme, Zakhele, on the JSE. But shares took a 26% hit before it even began trading. MTN Zakhele owns 4% of MTN Group. MTN Group's share price fell more than 22% in the week that followed the breaking news of the Nigeria fine.