Nigerian Communications Commission (NCC) has said it has no plans to reduce the $5.2 billion it slammed on the telecommunications networks, MTN, over failure to cut off unregistered SIMs in the country before deadline, as it also accused the operator of ‘routinely flouting regulations.’
Spokesperson Tony Ojobo of the NCC said the fine was the second imposed on MTN in two months over the same infraction: A failure to deactivate unregistered cellphone SIM cards.
“The issue is one of national security in Nigeria, where law enforcers say cellphones are used to activate bombs and coordinate other attacks by Boko Haram Islamic extremists as well as in kidnappings and armed robberies.
“When all four Nigerian cellphone service providers missed an August 11 deadline, they were fined amounts from $19 000, for Airtel, to $511 000 for MTN,” Ojobo said in a statement, adding; “Only MTN failed to pay.”
“When an enforcement team audited MTN from September 2-4, the company admitted it still had 5.2 million unregistered SIM cards active on its network,” the statement said. “Other companies had complied,” Ojobo added.
“They (MTN) have always been flouting regulations,” Ojobo said.
“The fine remains but the appeal and other engagements with MTN may affect the payment deadline.”
Institutional investors have complained the fine is punitive and warned it could deter investment in Nigeria, but the regulator’s statement said “sanctions are the last resort after all overtures fail but this does not in any way undermine industry standards and the interest of investors.”
Shares of South Africa-based MTN Group, Africa’s biggest telecommunications company, have slumped, even as CEO Sifiso Dabengwa resigned last week.
Despite the furor, the regulator this month extended MTN Nigeria’s operating license until 2021 for $94.2m. Nigeria is the group’s most lucrative subsidiary.
Other fines meted out recently include: $15m for United Bank for Africa or failing to transfer government deposits to a single treasury account by September 15; $5m to Stanbic IBCT Holdings, a subsidiary of Standard Bank of South Africa, which is contesting in court allegations that it filed misleading financial statements; and most recently the $5m to Guinness Nigeria for allegedly re-validating expired products and exposing raw materials to rats. The brewer denies wrongdoing.
