MTN Fined $5.2 Billion by Nigeria

ABUJA – Shares in telecommunications giant MTN reportedly fell to a three-year low on Tuesday after the Nigerian Communications Commission on Monday fined the company $5.2 billion for failing to disconnect users with unregistered SIM cards.

Nigeria is apparently MTN’s biggest market by subscribers. The penalty could wipe out more than two years of MTN’s profits, one news report said.

The NCC reportedly accused MTN Nigeria of failing to deactivate unregistered SIM cards in a timely manner, and said the fine is designed “to ensure that the wilful non-compliance ceases”.

According to The Guardian, unregistered SIM cards are seen as a major security threat by the Nigerian government, which is concerned that anonymous numbers facilitate terrorism and crime. Some saw the fine, which works out at about $1,000 per infringement, as excessive.

News reports said the fine could negatively affect Nigeria and deter investors, who might see the fine as a way to make up for a budget shortfall in the country.