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Nigeria: CEO of African telecom giant MTN resigns after fine

By  |  November 9, 2015

The CEO of Africa’s biggest telecommunications company resigned on Monday because of a $5.2 billion fine meted out to MTN Group’s Nigerian subsidiary.

Sifiso Dabengwa was quoted in a company statement as saying he resigned “due to the most unfortunate prevailing circumstances occurring at MTN Nigeria.”

Former group president Phuthuma Nhleko will act in his place for the next six months, the company said. Nhleko promised to “proactively deal” with the Nigerian Communications Commission, the regulator that fined the subsidiary for failing to meet a deadline to deactivate 5.2 million unregistered cellphone SIM cards. It’s considered a security threat in Nigeria, where authorities say cell phones are used to coordinate suicide bombings and other militant attacks by Boko Haram Islamic extremists as well as in rampant kidnappings and armed robberies.

“Shareholders are advised to continue to exercise caution when dealing in the company’s securities until a further announcement is made,” MTN said.

Full content: The Wall Street Journal

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