MTN Nigeria CEO Michael Ikpoki resigns

Michael Ikpoki and Wale Goodluck have both resigned as the chief executive officer (CEO) of MTN Nigeria and head of regulator and corporate affairs of the firm respectively.

Both quit as part of broader changes to improve oversight at Africa’s biggest mobile-phone operator.

Their departure came hours after the telecoms regulator NCC cut the fine imposed on MTN by about a third.

While their departure may sooth the market, it however, leaves unchanged the real matter of the utter arrogance, which has plagued most South African companies operating in Nigeria and elsewhere in Africa.

“MTN has received a formal letter dated Dec. 2, 2015 from the NCC informing the company that, after considering the company’s request, it has taken the decision to reduce the fine,” the Johannesburg-based company said in a statementThursday. MTN named Ferdi Moolman, the previous CEO of the company’s Iran unit and most recently the chief financial officer of MTN Nigeria, as head of the Lagos-based operations, replacing Michael Ikpoki.

The Nigerian regulator imposed the levy on MTN for failing to meet a deadline to disconnect 5.1 million unregistered subscribers. Its shares have lost 23 percent of their value since the fine was made public on Oct. 26. Group Chairman Phuthuma Nhleko took an executive position in November and led negotiations with the NCC after Chief Executive Officer Sifiso Dabengwa resigned.

The initial fine of $5.2 billion was more than MTN’s total sales in Nigeria in 2014 and the equivalent of about 37 percent of the group’s total revenue. A full payment would have exceeded the revenue the Nigerian government made from oil in the second-quarter, and more than double the state’s non-crude proceeds, according to central bank data. MTN’s largest shareholder, the Public Investment Corp., in November called on the board to take greater responsibility for the fine.

Nhleko will “immediately and urgently re-engage with the Nigerian authorities before responding formally,” MTN said in the statement. “All factors having a bearing on the situation will be thoroughly and carefully considered before the company arrives at a final decision.”

The company decided to reinstate its previous reporting structures to boost oversight, leadership and compliance across 22 countries in Africa and the Middle East, the company said in a separate statement. Jyoti Desai will be group chief operating officer, based in Johannesburg, while Karl Toriola will be vice president for the West and central African region and Ismail Jaroudi will play the same role for the Middle East and North Africa. Amina Oyagbola replaces Akinwale Goodluck as head of regulatory and corporate affairs in Nigeria.