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Nigeria Risks Investment With `Brazen' $5.2 Billion MTN Fine

  • Investor perceptions already strained, ETM Analytics Says
  • MTN Johannesburg shares in biggest three-day fall since 2008
Updated on

A decision by Nigerian authorities to impose a fine on MTN Group Ltd. of more than 20 percent of its market value risks foreign investment in an economy struggling to cope with sliding oil prices, currency restrictions and no finance minister.

“The brazenness of Nigerian authorities to levy such a penalty is attracting attention,” Gareth Brickman, an Africa analyst at ETM Analytics NA LLC in Stamford, Connecticut, said in an e-mailed note to clients . “Investor perceptions of Nigeria have been strained to say the least by policy makers’ management of the naira and the new administrations’ lack of progress on economic reform.”