Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Telecom giant MTN's earnings plunge over Nigeria fine

04 March 2016, 06:33

Johannesburg - South African telecoms giant MTN said Thursday that headline earnings last year fell by 51 percent, weighed down by $600 million it put aside to cover a huge fine imposed by Nigeria.

Without counting the fine, earnings were down 14 percent, chief executive Phuthuma Nhleko said.

MTN's Nigeria operation was slapped with a $3.9 billion penalty in October 2015 for failure to disconnect 5.1 million unregistered SIM cards.

The company said it had made provision of $594 million toward the fine.

It has so far paid out $250 million to the Nigerian government as it tries to negotiate a settlement.

The company said it had agreed to withdraw its legal challenge over the fine in the Lagos High Court, to enable the two parties to try to reach an agreement.

"We are working as urgently as we can to get an amicable solution of this matter," Nhleko said.

Also read: MTN set aside $600m for Nigerian fine

The MTN share price on the Johannesburg stock exchange rose seven percent after the announcement of the company results compared to the close on Wednesday.

Nigerian authorities ordered unregistered SIM cards to be deactivated for security reasons, as the country battles Boko Haram as well as criminality, especially kidnapping for ransom.

Nigeria is MTN's largest market, where it now has 61.3 million subscribers out of a total of 232.5 million.

Nhleko said 2015 was "an exceptionally difficult year for the company - I will probably say the most difficult year it has ever experienced in its 21-year history".

During the year, MTN had to disconnect 10 million subscribers - 6.7 million of them in Nigeria and 3.7 million in Uganda.


Tags mtn nigeria

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...