We have reports that the N1.4 trillion fine on MTN lingers, the Nigerian Communications Commission (NCC) has just given MTN Nigeria a deadline of 16 November 2015 to pay the fine imposed on it for failing to register the personal details of 5.1 million subscribers.
The deadline is coming after reports of South Africa’s stock exchange, JSE Ltd, launched an investigation into the timing of the operator’s announcement of its penalty. “
A statement by MTN said its CEO is still in talks with the Nigerian authorities and its senior management and advisers also talking to JSE, after the announcement of the fine knocked around 20 percent off the company’s stock price.”
‘‘That’s why they are having the discussion so that they can reach a solution,” the spokesperson said.
As for the JSE probe, the head of the regulatory division, Andre Visser, said “the investigation will follow due process to establish whether there have been any breaches of the listings requirements and can be a lengthy process.”
Meanwhile, Fitch Ratings has revised MTN Group’s outlook to negative, owing “to the risk of a significant cash outflow due to a substantial fine imposed on MTN’s Nigerian operations, which could increase leverage and pressure MTN’s credit metrics.”