“Nobody wants MTN to die. Nobody wants MTN to shut down.”
These were the words of the new minister of Communications, Adebayo Shittu when he spoke to Reuters in an interview today.
He emphasized that Nigeria would not want MTN to quit the country because of a $5.2bn fine imposed last month, just as the deadline for paying the money falls on next Monday.
The minister said that the period for the enforcement of the judgment has not yet passed, adding that the company has sent top executives to Abuja to try to negotiate a way out.
On the level of the talks so far between the African mobile phone giant and the government, Shittu simply said: “nothing before me”.
“If any new thing would happen, there must be initiative from concerned quarters. It is up to MTN.”
The fine, if fully enforced, would amount to more than the past two years of profit for MTN in its biggest market.
The fine is based on $1,000 per outstanding unregistered SIM card, as stipulated by Nigerian telecommunications laws, although most analysts expect some sort of a reduction.
Nigeria accounts for 37% of revenues for MTN, which operates in more than 20 countries in Africa and the Middle East. Since the announcement of the fine, its shares have lost nearly 25% of their value.
Nigeria has been pushing telecom operators to verify the identity of subscribers due to concerns that unregistered SIM cards are being used for criminal activity or even by Boko Haram militants waging an Islamist insurgency in the northeast. [myad]
….,I think that decision is MTN’s to stay or not. But they have to find a way to pay the penalties. What they did was criminal and unethical practice that wane down on its core value and practice, with very serious security implication to the country, when the nation is fighting its worst challenge in its history against insurgency.
Mr minister, what MTN did would have been met with no less punishment anywhere in the serious world. Fortunately, MTN has the capability to pay the penalties even fif on their very huge profits.