World Bulletin / News Desk

Africa’s biggest mobile network MTN Group confirmed Thursday that Nigerian authorities have now reduced the fine that it has to pay for breaching industry regulations to $3.4 billion from $5.2 billion, MTN said in a statement to the regulatory news service of the stock exchange on Thursday.

Nigeria’s Communications Commission (NCC) slapped MTN with the hefty fine on Oct. 26,  after the company failed to deactivate 5.1 million unregistered subscribers from its network as required by regulations.

MTN said in a statement that it received a formal letter from the NCC reducing the fine.

“The MTN Group is carefully considering the NCC’s reply, however MTN Executive Chairman Phuthuma Nhleko will immediately and urgently reengage with the Nigerian Authorities before responding formally,” the statement said.

The mobile operator also said it is essential for the group to follow due process to ensure the best outcome for both its stakeholders and the Nigerian authorities. 

In a related development, MTN announced that Michael Ikpoki, MTN CEO in Nigeria  and the head of its regulatory and corporate affairs Akinwale Goodluck have resigned with immediate effect.

Experts believe the resignations are connected to the hefty fine that the company received in the West African country.

Last month, MTN Group CEO Sifiso Dabengwa also resigned from the company, citing the damage done by the fine.

He was temporarily replaced by Phuthuma Nhleko, the company’s current non-executive chairman.

The South Africa-based company, which operates in 22 African countries, Asia and the Middle East has faced turbulence since Nigerian authorities imposed the hefty fine.

 Its share price has continuously been volatile on the Johannesburg Stock exchange.

 “Shareholders are advised to continue to exercise caution when dealing in the Company’s securities until a further announcement is made,” the company has warned shareholders via the regulatory news.

MTN has until December 31 to pay the penalty.