The Nigeria Communications Commission has only reduced MTN’s fine by 25%, and not 35% as originally announced.
The fine relates to the late disconnection of 5.1 million MTN Nigerian subscribers in August and September 2015.
On 3 December, MTN announced that its fine in Nigeria was reduced to N674 Billion Naira (±R48.5 billion).
MTN has now issued an updated statement, saying it received a second letter from the NCC dated 3 December 2015 which gave it a higher fine.
“The second letter, which was stated to supersede the first letter, informed the company that the fine had actually been reduced by 25% to 780 Billion Naira (±R56.4 billion),” said MTN.
The full MTN statement is provided below:
Further update on the fine imposed by the Nigerian Communications Commission (NCC) and renewal of cautionary announcement
On 3 December 2015 shareholders were informed that MTN had received a formal letter dated 2 December 2015 from the NCC (the First Letter) informing the Company that, after considering the Company’s request, it had taken the decision to reduce the fine imposed on the MTN Nigerian business from the original N1,040,000,000,000 (One Trillion, Forty Billion Naira) (the Original Fine) to 674 Billion Naira, which had to be paid by 31 December 2015.
The fine relates to the late disconnecting of 5.1 million MTN Nigerian subscribers in August and September 2015. This was a reduction of 35% of the Original Fine.
Late on 3 December 2015, the day after receipt of the First Letter, the Company received a further letter from the NCC dated 3 December 2015 (the Second Letter). The Second Letter, which was stated to supersede the First Letter, informed the Company that the fine had actually been reduced by 25% to 780 Billion Naira and not by 35% to 674 Billion Naira, as was stated in the First Letter. The payment date remained 31 December 2015.
Neither the First Letter nor the Second Letter sets out any details on how the reduction was determined.
The Company is carefully considering both the First Letter and the Second Letter, and the Executive Chairman Phuthuma Nhleko will immediately and urgently re-engage with the Nigerian Authorities before responding formally, as it is essential for the Company to follow due process to ensure the best outcome for the Company, its stakeholders and the Nigerian Authorities, and accordingly all factors having a bearing on the situation will be thoroughly and carefully considered before the Company arrives at a final decision.
Shareholders are therefore advised to continue to exercise caution when dealing in the Company’s securities until a further announcement is made.