Lagos – After agreeing to a settlement with the Nigerian government over a landmark fine, the MTN Group has been advised to prioritise on corporate governance to avoid a recurrence of ethical issues.
Recently, the mobile network operator agreed to pay a record N330 billion ($3,9 billion) fine Nigeria Communications Commission slapped on it last year for failure to register over 5 million subscribers.
The fine, initially pegged at N1 trillion, led to an exodus of senior executives.
“We have already seen MTN commit itself to good governance,” said industry expert, Arthur Goldstuck.
He said the emphasis now must be on transformation of corporate culture within and across the group.
Also read: MTN to pay $1.7 billion Nigeria telecoms fine
“Without that internal commitment and cultural shift, compliance will remain an idea rather than a priority,” Goldstuck pointed out.
“We have seen significant restructuring, but the proof lies in the manner in which the organisation conducts itself rather than in how it structures itself.”
He highlighted the plan by the South African-headquartered operator to list its beleaguered entity in the Nigeria Stock Exchange was pivotal.
“Considering that Nigeria is MTN's biggest market in terms of subscribers and may eventually become the same for revenue, a local listing makes sense,” said Goldstuck.
– CAJ NewsFor the latest on national news, politics, sport, entertainment and more follow us on Twitter and like our Facebook page.
- CAJ News