According to the Nigerian Communications Commission (NCC), MTN Group Ltd. is in deliberations with Nigerian authorities over the removal of sanctions imposed for not meeting phone-service quality standards.
The NCC is investigating whether MTN, Africa’s largest wireless company, is now compliant with standards, spokesman Tony Ojobo said last Friday. The sanctions, including withdrawal of regulatory services, were imposed last December, he added.
After the news, MTN shares declined by 20 per cent, the steepest fall in 18 years. “MTN was here last week to discuss these sanctions and how they could be bridged,” Ojobo said. “MTN has agreed to comply and we have some people in the field now to make sure that MTN is indeed doing what they promised. We will accordingly lift the sanctions if the company is compliant.” He added, “The settlement of a record $3.9bn fine imposed on MTN by the regulator in 2015 wasn’t debated.” Since lawyers representing both sides were leading the deliberations. A Lagos court last month adjourned a hearing called by MTN until 18 March so that both sides could reach an agreement.
“Our lawyers and their lawyers are in talks and trying to reach some kind of agreement,” Ojobo said. MTN stock dropped more than a third since the huge fine was first announced last October.
