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The Nigerian government seems not to be moved by the
resignation of the CEO of MTN Group, Sifiso
Dabengwa on Monday over a $5.2 billion fine imposed
on the company by the Nigerian Communications
Commission (NCC) for failing to cut off subscribers
with unregistered SIM cards, as it has insisted on the
fine being paid on or before November 16.
A senior federal official, who spoke under the condition
of anonymity to reporters yesterday in Abuja disclosed
that “The MTN Group delegation met with the Chief
of Staff to the President, Malam Abba Kyari and he
told them they must pay the fine”.
The South Africa based MTN Group in a statement
yesterday, said its former CEO, Phuthuma Nhleko
would take charge for six months in acting capacity
after which a substantive CEO will be appointed.
Analysts, who have been reacting to the hefty fine
imposed on MTN, agree the development would make
multinational companies doing business in Nigeria to sit
up.
Of particular interest is the statement by telecoms
analyst and presenter, Tech Trends on Channels
Television, Fred Agbata Jr., who said “This will
make them know that it is not business as usual”.
MTN said it was continuing talks with the authorities
in Nigeria over the fine. But an NCC official insisted
that the federal government is only interested in seeing
the fine paid.
“The November 16 deadline still stands. No concession,
the government is only interested in seeing $5.2bn paid
by MTN”, the NCC official, who pleaded anonymity,
told Daily Trust.
Meanwhile, there are fears the fine may lead to job
loss in Nigeria as the resignation of Mr. Dabengwa is
only seen as a tip of the iceberg of what is to come.
Yesterday, MTN’s largest shareholder, South Africa’s
Public Investment Corporation (PIC), said it wanted
to meet with the new acting CEO about his plans to
tackle the fine and wants more staff at MTN to take
responsibility for the penalty.
“A lot more people need to take collective responsibility
for the fine… for the alleged failure to comply with
regulatory requirements”, the PIC’s chief executive
Daniel Matjila said in a statement.
The statement has been interpreted to mean the current
crisis may sweep away some of MTN Nigeria’s top
management staff especially the country’s CEO,
Michael Ikpoki as well as some others officials.
Other staff are also said to be on the edge because of
the implications of the fine of MTN businesses in
Nigeria should they go ahead to pay the sanction.
Source:INFORMATION NG
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