BEVERLY HILLS, June 10, (THEWILL) – Mobile telecommunication company, MTN Nigeria has agreed to pay N333 bn ($1.7 bn) to the Federal Government over a space of three years as “full and final settlement” for its failure to disconnect unregistered mobile subscribers. This is coming after an eight-month long negotiation between MTN and Nigerian Communications Commission, NCC.
The Federal Government announced on Friday that it has concluded terms of resolution, agreeing for MTN to pay N330 billion in full and final settlement of the fine in line with an agreed payment plan.
The Federal Government says that in addition to the monetary settlement, MTN Nigeria must – subscribe to the voluntary observance of the Code of Corporate Governance for the Telecoms Industry and would ensure compulsory compliance.
The company also undertakes to take immediate steps to ensure listing of its shares on the Nigerian Stock Exchange as soon as is commercially and legally possible, and lastly, the company must always ensure full compliance of its licence terms and conditions as issued by the NCC.
Chief Executive Officer of MTN Nigeria, Ferdi Moolman said, “MTN Nigeria once again offers its most sincere apologies for the series of unfortunate events that led to the imposition of the fine.
“It was of critical importance to reach a solution that would be of universal benefit to all stakeholders given the importance of the ICT industry in Nigeria and its tremendous impact on socio-economic growth. Along with the authorities, we believe that has been achieved.”
Moolman talking about the listing, “MTN Nigeria is undoubtedly one of Nigeria’s success stories. Broader public participation exemplifies this.”
MTN Nigeria considered the fine inimical to the sustainability of its business and sought judicial determination in December 2015. According to the company, this was done to protect the extensive local ecosystem, valued and supported by MTN’s business.
MTN Group Executive Chairman, Phutuma Nhleko, while commenting on the agreement of the NCC fine, thanked the Federal Government for the way the issue was resolved, noting; “This is the best outcome for the company, its stakeholders, the Federal Government and the Nigerian people and the relationship between MTN, the Federal Government and the NCC has been restored and strengthened.”
It could be recalled that MTN Nigeria was issued an initial fine of N1.04 trillion by the NCC in October 2015, for failing to disconnect 5.1 million improperly registered SIM cards within the prescribed deadline.
The initial fine of N1.04 trillion was later adjusted by 25 percent to N780 billion.
