The Nigerian Communications Commission (NCC) has defended the $5.2-billion sanction on MTN Nigeria, adding that it was the second fine imposed on the operator in two months for the same violation.

The commission’s director of public affairs, Tony Ojobo, said the NCC had acted “in the interest of the public”, which had been suffering security challenges as a result of unregistered and improperly registered SIM cards.

Technically, he said, the fine was the result of a violation of section 20(1) of the Registration of Telephone Subscribers Regulation of 2011, which states: “Any licensee who activates or fails to deactivate a subscription medium in violation of any provision of these regulations is liable to a penalty of N200 000 for each unregistered but activated subscription medium.”

Ojobo added that there was “overwhelming evidence” of non-compliance and “obvious disregard to the rule of engagement” by MTN and, therefore, the NCC had no choice but to impose the sanction.

Ojobo said MTN had admitted the infraction and pleaded for leniency in a letter dated November 2.

He said the commission was “looking into their plea without any prejudice to the fine”. He added: “The fine remains, but the appeal and other engagements with MTN may affect the payment deadline.”

Ojobo said the fine was the second imposed on MTN in two months after the operator had ignored a 7-day ultimatum to deactivate unregistered and improperly registered SIM cards in August.

He said the deadline had been imposed after a meeting of representatives of all mobile network operators on August 4, where the agenda had focused on major security challenges created as a result of unregistered and improperly registered SIM cards.

Ojobo said the NCC had carried out a network audit on August 14, three days after the ultimatum had expired. He said four operators – MTN, Airtel, Globacom and Etisalat – had been sanctioned for non-compliance. MTN was fined N102.2 million (just over $500 000), Globacom N7.4-million, Etisalat N7-million and Airtel N3.8-million.

“Others complied while MTN flouted the fine,” Ojobo said, adding that the NCC had a statutory responsibility to monitor and enforce compliance of the rules especially “when national security is at stake”.

“As a responsible regulator, the NCC will not stand by and watch rules and regulations for engagement being flouted by any operator.” He said sanctions were the last resort after all other overtures had failed, “but this does not in any way undermine industry standards and the interest of investors”.

MTN says it is in talks with Nigerian authorities over the matter.