The Nigerian Communications Commission (NCC) reduced the $5.2 billion fine facing South Africa’s MTN by about one third to $3.4 billion, while the management fallout continues at the group with two more executive departures and a revamped reporting structure.

Talks between the NCC and the company have been going on for several weeks and this is the outcome, which was delivered in a letter dated yesterday (2 December).

MTN’s reaction to the reduction was cautious, saying the company is “carefully considering” the NCC’s reply. Executive chairman Phutuma Nhkelo will “immediately and urgently re-engage” with the Nigerian authorities “before making a formal response”, said a statement.

The statement continued: “Furthermore, as it is essential for the company to follow due process to ensure the best outcome for the company, its stakeholders and the Nigerian authorities and accordingly all factors having a bearing on the situation will be thoroughly and carefully considered before the company arrives at a final decision.”

And a source told Reuters that MTN more negotiations are on the cards: “The fine is still big enough to cripple MTN’s ability to invest in its network and that’s what further talks with the NCC are about.”

MTN is facing the fine after failing to cut off 5.1 million unregistered SIM cards from its network, with NCC stepping up efforts to verify the identity of subscribers amid concerns about terrorism.

Nhkelo was appointed executive chairman following the resignation of group president and CEO Sifiso Dabengwa last month.

Now the affair has claimed the resignations of MTN Nigeria CEO Michael Ikpoki and the head of regulatory and corporate affairs, Akinwale Goodluck.

New reporting structure
The company also unveiled a new operating structure following a review which decided to re-implement its previous structure. This will see the group restructured into three regions: West and Central Africa (WECA), South and East Africa (SEA) and Middle East and North Africa (MENA).

From 1 December 2015, Jyoti Desai assumed the new position of group chief operating officer, reporting to the executive chairman. Her replacement as group chief technology and information officer will be announced soon.

Two regional vice presidents have been appointed, also reporting to the Executive Chairman. The VP for WECA is Karl Toriola, with Ismail Jaroudi the VP for MENA. The VP for SEA will be announced soon.

Also reporting to the executive chairman is the new Group Executive for M&A, Matthew Odgers, a former investment banker.

Finally, the statement said the search for a new MTN Group CEO, Dabengwa’s successor, is underway and is a priority.