Mobile Telecommunications Network (MTN) has been slapped with the biggest fine they or any other telecoms service in the country has ever experienced by the NCC for its failure to meet up to the regulation put in place by the NCC. Having set a deadline for the SIM registration exercise, MTN failed to deactivate over 5 million subscribers from its network and NCC has ordered the firm to pay #200,000 per subscriber, totaling a massive $5.2 billion or in Nigerian currency, #1.04 trillion.
For the first day, MTN’s stock value dropped a very big 12% which marked the biggest drop that the firm has experienced in 17 years. Their woes were not soon to end as much more investors who are looking to minimize their losses have taken the option of the door, seeing MTN drop a further 16% and lose a total value of 50 billion rands (about $3.66 billion) in the period of these two days.
While NCC has stipulated November 16 as the deadline for payment of this fine, sources close to both parties and in the know as regards the issue on ground have stated that MTN is in negotiations with NCC in a bid to reduce the fine reasonably to not affect the business.
It is somewhat worthy of note that if NCC refuses to back down in its request, MTN could lose more than 2 years of its annual profits in a click.