Mobile giant MTN plans to seek reduction of the N1.4trillion ($5.2 billion) fine imposed on it by the Federal Government.
Non-executive chairman Phuthuma Nhleko was named executive chairman of MTN for up to six months after Sifiso Dabengwa stepped down as CEO with immediate effect on Monday.
His priority is dealing with the crisis in Nigeria, Africa’s most populous nation, which is MTN’s largest market and contributes more than a third of its revenues.
“I can’t say whether we’ll pay the whole fine. I don’t want to negotiate with Nigerian regulators on a public forum,” Nhleko, who is also a former CEO of MTN was quoted to have said.
MTN has a Monday deadline to pay the fine imposed on its unit in Nigeria for failing to cut off 5.2 million users with unregistered SIM cards.
The Nigerian communications regulator has been pushing cell phone network companies to verify the identity of their subscribers because of fears that unregistered SIMs were being used for criminal activity.
MTN would not comment on whether it has approached banks to ensure enough cash is available should the fine be enforced.
“The planning is based on all possible outcomes and contingencies and our aim is to comply with all regulations in Nigeria,” said MTN spokesman Chris Maroleng.
Shares in MTN were down 3.9 per cent at 153.75 rand by 1252 GMT, compared to a 1.6 per cent drop in the Johannesburg Stock Exchange’s benchmark Top-40 index.