MTN: Nigerian service is still hampered

AFRICA’S largest telecoms operator, MTN, yesterday said that its Nigerian services continued to be hampered despite the end of a fuel strike on Monday. Nigeria, its biggest market, has been suffering acute petrol, diesel and aviation fuel shortages for the last few weeks due to a strike by marketers and distributors over non-payment of subsidies by the government. Africa’s biggest oil producer and economy subsidises petrol and must import the bulk of the 40 million litres a day that it consumes owing to a neglected refining system. A dilapidated and grossly inadequate power grid means businesses and households depend on diesel for electricity. Other local telecoms operators also warned customers of reduced services and banks said they would start closing their branches early from Monday. Airlines, particularly Arik Air, have been forced to cancel or delay domestic flights. With an impending change in government on Friday, stakeholders across the fuel supply chain were concerned that the incoming government may not pay out the remaining subsidy debt. MTN shares fell 1.59 percent to R220.43 yesterday. – Reuters