Giant telecommunications operator, MTN has said the N1.04trn fine slammed on it by the Nigerian Communications Commission can run the company aground.
The newly appointed chief executive officer of MTN Nigeria, Mr. Ferdi Moolman has lamented the N1.04 trillion ($5.2 billion) fine slammed on the network operator by the Nigerian Communications Commission is actually 95 per cent of its annual revenue.
The company's CEO stressed that paying such an amount in its entirety could liquidate the network.
NCC had in late October 2015 imposed a N1.05 trillion on MTN for not deactivating 5.1 million pre-registered subscriber identification module (SIM) lines discovered on its network.
Moolman, who spoke with media at the weekend, acknowledged the tough operating environment MTN has found itself. He noted that though the fine was hash on the operator, he said MTN has learnt lessons from it and would work to restore relationship with the regulator, stakeholders and its customers.
“I see a situation where the relationship with NCC is restored in the interest of the Nigerian public, where we start providing services again to the Nigerian public together with the NCC” he said.
He said the amount was about 95 per cent of the company’s total revenue for a year.
“The size of the fine blows my mind when you start looking at the figure. It is huge, it is massive. How do you fix it, what do you do? Operating in the telecom world has become challenging” he said.
He explained that the falling oil prices and fluctuating foreign exchange were having a negative impact on the ability of the company to import equipment from abroad.
“It is really disturbing and it has become more difficult to import equipment from abroad. These two issues of falling oil prices and fluctuating foreign exchange regime are serious issues, but we have confidence in the Central Bank of Nigeria’s (CBN) efforts to resolve the matter.”
He added that henceforth, MTN is positioning itself as full digital company playing deep in the broadband, broadcasting and digital content space in the information and communications technology sector.
“We would like to take this company from a telecom company to a people’s company so that people can communicate with each other, entertain themselves, something that people are proud to be part of" Moolman said.