The Group Chief Executive Officer of telecommunications giant MTN, Mr Sifiso Dabengwa, has tendered a letter of immediate resignation over a $5.2 billion fine imposed by the Nigerian Communications Commission (NCC) on the Nigerian branch of the company.
Nigeria’s telecommunications regulator, NCC, imposed the over N1 trillion fine on MTN for failing to deactivate some 5 million unregistered SIM cards and failing to provide registration information for certain lines that were traced to terrorist group, Boko Haram.
A statement released by MTN Group on Monday morning said Mr Dabengwa will be replaced by non-executive chairman Phuthuma Nhleko for a maximum of six months while the company identifies a successor.
Dabengwa resigned over the weekend after consultation with the board and his financial compensation has not been resolved, MTN spokesman Chris Maroleng told Bloomberg.
“Due to the most unfortunate prevailing circumstances occurring at MTN Nigeria, I, in the interest of the company and its shareholders, have tendered my resignation with immediate effect,” Dabengwa said in the statement.
MTN has until November 16 to pay the fine imposed by the NCC, which relates to the timing of the disconnection of 5.1 million subscribers and is based on a charge of 200,000 naira ($1,008) for each unregistered customer. The company’s shares lost almost a quarter of their value following the disclosure of the fine, before a partial recovery.