By Modupe Gbadeyanka
Top South African telecommunications firm, MTN, has said it will pay dividend in 2017 to its shareholders despite recording a huge loss in 2016 for the first time in 20 years.
Business Post correspondent reports that MTN recorded a loss $108 million, which was mainly due to the fine slammed on it by the Nigerian government in 2016 for failing to disconnect lines of its unregistered subscribers as required by law.
In June 2016, the Nigerian Communications Commission (NCC) fined MTN $5.2 billion, but this was later reduced to $1.1 billion.
Also in 2016, the Nigerian Senate accused MTN of repatriating about $14 billion from Nigeria to its parent country, South Africa, between 2006 and 2016 illegally.
A Minister and four banks were alleged to have helped in aiding this alleged illegal transfer.
Also last year, MTN had to operate under a harsh business environment in Nigeria like others due to recession and foreign exchange crisis, which saw the Naira exchanging about N420 per Dollar at the parallel market.
But despite the huge loss it suffered last year due to the above challenges, the company has promised to pay dividends to its shareholders in 2017.
According to MTN, it will pay 700 cents per share this year after declaring a similar amount for 2016.
This news made its shares to surge at the stock market.
Adedapo Adesanya