South African telecoms operator, MTN, is still in talks with the Nigerian regulator to reduce its N1trn ($5.2bn) fine by 80 percent, according to a Renaissance Capital’s (Rencap) note to clients.
A Bloomberg report quoted RenCap Head of Research, Adesoji Solanke as saying that the telecoms giant is “pushing to reduce the fine by 60 percent to 80 percent.”
The telecoms firm is also looking at borrowing from the banks to help offset the penalty which has been considered harsh by industry operators.
“MTN is considering borrowing from banks, as it recently checked what the banks’ lending capacity to it is,” RenCap disclosed, citing an unnamed bank and another lender as sources.
MTN has until November 16 to pay the penalty, which relates to the timing of the disconnection of 5.1 million subscribers. The fine is based on a charge of 200,000 naira ($1,005) for each unregistered customer.
The Johannesburg-based company’s shares lost almost a quarter of their value following the disclosure of the fine, before recovering 9 percent over the past two sessions.
“We don’t comment on banking matters and banking regulators in Nigeria are best placed to provide context on these matters,” MTN spokesman Chris Maroleng said by phone.
“I don’t have that information,” Tony Ojobo, a spokesman for the NCC, said in a text message to Bloomberg.
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