First and foremost I am no employee of MTN or have any Stake with MTN. I am just a concerned citizen. I personally frown at some of their services ranging from unsolicited text or calls etc

On the 26th of October the NCC fined MTN Nigeria for failing to disconnect 5.1 million of its unregistered cellphone subscribers.
The $5.2 billion fine is equivalent to at least two average years' profit for MTN Nigeria and nearly three times the $1.8 billion that it has invested in the West African country according to the company's website. Africa's leading cellphone service provider, MTN paid $285 million for one of four GSM licenses in Nigeria in 2001.
$5.2b is equivalent to about N1.2trn currently; This amount is way too far from the recently imposed fines of about N5b by CBN to two banks who failed to remit certain amount of money to the Treasury Single Account

As a result of this, I came up with some possible effect it may have on the Economy,
1. INCREASE IN RATES/CHARGES:
This no doubt this remains the major effect on the customer. Basic economics teaches us that whenever there is increase in the cost of production of a particular good or service, the burden is usually passed on the final consumers through the form of increased Price. Don’t be surprised when N100 airtime last just 2-3 minutes or data rates increase to 50k/kb. This is the likely strategy to recoup what must have been expended in the cost of paying the enormous fees.

2. INVESTORS’ CONFIDENCE :
When potential investors see the rate of such huge fees, it is likely to dampen their confidence in the economy especially now we are grappling with the issues of dwindling oil prices and security catastrophes looming in the North East. Bloomberg further stressed this, check article here

https://www.nairaland.com/2699526/investors-losing-faith-buharis-govt

3. UNEMPLOYMENT:
MTN Nigeria employs a reasonable size of the Nigerian workforce. The heavy fines levied on them could be able to pay the salaries of all staff and employees over the next 5yrs with full entitlements and benefits in kind. An organization may deem it fit to cut down its staff strength in order to reduce its cost of operation and this would in turn have a massive effect on the labour force of our country, I‘m sure you know our present unemployment status, it need not be overemphasized.

4. INCREASE IN THE COST OF MAST USAGE AND RENT :
Most communication networks dealing mainly with the provision of internet services especially 4G network use the mast of already established networks like MTN to mount their Base Transmission Station (BTS) for effective delivery of service. As a result of this huge fine levied, this could likely increase the cost of rent to be charged to other communication networks and this may subsequently increase their subscription rate thereby affecting final consumers

It is good to have regulations in a country shielding the public of exploitative tendencies by providers of goods and services ( whether local or foreign companies), it is also a laudable idea for NCC to ensure that all sim cards be duly registered for efficient administration and most especially security reasons. Fines as a form of penalty is in itself an effective method of compliance
However, it is unjust to fine a single company with such an outrageous amount. $1000 on every unregistered sim is just so exorbitant.

Source: Juddexy2

In as much as I don't want to join issues with you because I don't know your background. But from your analysis, it came out strong that you have little or no economic knowledge as u claim. Your first point is totally not only untrue but lack any base in the field of economics. The ability of a producer to shift the increase in the cost of production to the consumer depend on the elasticity of the product or service. In this case, Nigeria telecommunication industry is perfectly elastic as we have it now. What this means is that it's almost impossible for MTN to shift the burden to the consumer through increase in the tariff, based on the elasticity of demand of their service. The only way MTN can shift the burden to the consumer is only when other sector operators chose to gang up through formation of cartel to deal with NCC by unanimously increase their tariff by certain rate. May be you don't know, most Nigerians have multiple Sim cards and are more than willing to port to any network that offer cheaper prices at any particular point in time.

juddexy2:
First and foremost I am no employee of MTN or have any Stake with MTN. I am just a concerned citizen. I personally frown at some of their services ranging from unsolicited text or calls etc

On the 26th of October the NCC fined MTN Nigeria for failing to disconnect 5.1 million of its unregistered cellphone subscribers.
The $5.2 billion fine is equivalent to at least two average years' profit for MTN Nigeria and nearly three times the $1.8 billion that it has invested in the West African country according to the company's website. Africa's leading cellphone service provider, MTN paid $285 million for one of four GSM licenses in Nigeria in 2001.
$5.2b is equivalent to about N1.2trn currently; This amount is way too far from the recently imposed fines of about N5b by CBN to two banks who failed to remit certain amount of money to the Treasury Single Account

As a result of this, I came up with some possible effect it may have on the Economy,
1. INCREASE IN RATES/CHARGES:
This no doubt this remains the major effect on the customer. Basic economics teaches us that whenever there is increase in the cost of production of a particular good or service, the burden is usually passed on the final consumers through the form of increased Price. Don’t be surprised when N100 airtime last just 2-3 minutes or data rates increase to 50k/kb. This is the likely strategy to recoup what must have been expended in the cost of paying the enormous fees.

2. INVESTORS’ CONFIDENCE :
When potential investors see the rate of such huge fees, it is likely to dampen their confidence in the economy especially now we are grappling with the issues of dwindling oil prices and security catastrophes looming in the North East. Bloomberg further stressed this, check article here

https://www.nairaland.com/2699526/investors-losing-faith-buharis-govt

3. UNEMPLOYMENT:
MTN Nigeria employs a reasonable size of the Nigerian workforce. The heavy fines levied on them could be able to pay the salaries of all staff and employees over the next 5yrs with full entitlements and benefits in kind. An organization may deem it fit to cut down its staff strength in order to reduce its cost of operation and this would in turn have a massive effect on the labour force of our country, I‘m sure you know our present unemployment status, it need not be overemphasized.

4. INCREASE IN THE COST OF MAST USAGE AND RENT :
Most communication networks dealing mainly with the provision of internet services especially 4G network use the mast of already established networks like MTN to mount their Base Transmission Station (BTS) for effective delivery of service. As a result of this huge fine levied, this could likely increase the cost of rent to be charged to other communication networks and this may subsequently increase their subscription rate thereby affecting final consumers

It is good to have regulations in a country shielding the public of exploitative tendencies by providers of goods and services ( whether local or foreign companies), it is also a laudable idea for NCC to ensure that all sim cards be duly registered for efficient administration and most especially security reasons. Fines as a form of penalty is in itself an effective method of compliance
However, it is unjust to fine a single company with such an outrageous amount. $1000 on every unregistered sim is just so exorbitant.

Source: Juddexy2

MTN exit from Nigeria will affect Nigeria in the short-term and MTN in the long term...
its not a monopoly remember? and you don't ditch a country's laws and threaten her with retrenchments and GDP jargon

muri4mig:
In as much as I don't want to join issues with you because I don't know your background. But from your analysis, it came out strong that you have little or no economic knowledge as u claim. Your first point is totally not only untrue but lack any base in the field of economics. The ability of a producer to shift the increase in the cost of production to the consumer depend on the elasticity of the product or service. In this case, Nigeria telecommunication industry is perfectly elastic as we have it now. What this means is that it's almost impossible for MTN to shift the burden to the consumer through increase in the tariff, based on the elasticity of demand of their service. The only way MTN can shift the burden to the consumer is only when other sector operators chose to gang up through formation of cartel to deal with NCC by unanimously increase their tariff by certain rate. May be you don't know, most Nigerians have multiple Sim cards and are more than willing to port to any network that offer cheaper prices at any particular point in time.

I do agree with you but beg to differ a little.I think the demand for telcom service in Nigeria is FAIRLY ELASTIC (glo,eti,and airtel are good substitutes for mtn, hence consumers can easily switch should mtn increase its tariffs).