Africa mobile comms giant MTN’s $5.2bn Nigerian fine: Now the CEO resigns
Tuesday, November 10, 2015
The CEO of Africa’s largest mobile telecoms company, MTN Group, has resigned following two weeks of wrestling with the Nigerian authorities over the imposition of a massive fine.
In a statement to the Johannesburg Stock Exchange, the company announced that Sifiso Dabengwa will leave with immediate effect, to be replaced temporarily by non-executive chairman Phuthuma Nhleko.
MTN confirmed that Dabengwa’s resignation was related to a massive $5.2bn fine imposed on the company by the Nigerian regulator, the Nigerian Communications Commission (NCC) at the end of August.
The firm has a week left to pay or negotiate a settlement. The fine is almost double the firm’s net profit for the whole of 2014, and its shares have tumbled by 25 percent since it was announced. Last week, the JSE halted trading in MTN stocks temporarily amid rumours that a settlement was due.