MTN Nigeria fined $5.2 billion over SIM deactivation

MTN Nigeria fined N1.04 Trillion (US $5.2 billion) after failing to follow a directive from Nigeria Communications Commission (NCC) to deactivate 5.2 million incomplete subscriber identification module (SIM) cards on its network

NCC has also suspended all the regulatory services until the fine is paid which in turn the share price of MTN Group reacted failing by 12 per cent yesterday.

A source in NCC said MTN was fined after it failed to carry out the commission’s directive despite repeated warnings.

According to Daily Trust, the penalty, according to the NCC, represents N200,000 (US $1,000) for each of the unregistered 5.1 million SIM cards.

From 2012 when the SIM registration started, SIM card buyers had to register the card under their name by law.

But the telecoms regulator found out in August that the telecoms operators did not carry out the exercise properly on 38.78 million subscribers, and they were directed to re-register the subscribers within one month or be sanctioned.

NCC’s Head of Compliance and Monitoring Unit, Efosa Idehene said, “The commission had cited poor finger prints, no facial information and other biometric challenges for the incompleteness of the subscribers’ registration.”

“We need to handle this issue of sanction very carefully as it may send wrong signals to would-be investors both in our sector and in other sectors of the economy.” Mr. Gbenga Adebayo, the president of Association of Licensed Telecommunications Operators of Nigeria (ALTON)