S’African govt ‘in talks with NCC’ over N1.04tr fine

South African government officials met with the Nigerian Communications Commission (NCC) over the N1.04 trillion fine imposed on MTN.

According to Reuters, the meeting was aimed at reviewing the decision, which threatens MTN’s existence in the Nigerian economy.

“The federal government at the presidential level is holding a meeting with MTN and the NCC. The main thing on the agenda is the fine,” a source told Reuters.

The largest telecommunication outfit in Nigeria attracted the record levy for failing to disconnect 5.1 million unregistered Subscriber Identity Module (SIM).

Calixthus Okoruwa, an industry analyst, described the fine as “excessive and clownish”, saying it appeared like a 400-year jail term for a traffic offence.

David McIlroy, chief investment officer at Alquity, which oversees $100 million of frontier market stocks, including MTN shares, told Bloomberg that it is the last thing Nigeria needs now.

“It’s the last thing Nigeria needs, given the economic and political struggles it’s contending with at the moment. It’s concerning for MTN and in terms of the wider implications for foreign investment,” he said.

The fine equates to more than 20 percent of MTN’s market value across 22 countries.