Nigeria orders MTN to pay $3.9 bln fine by Dec 31

MTN was the only operator in the country that did not meet the deadline for this order.

MTN’s Nigerian unit could find itself on the receiving end of another financial penalty if it fails to pay its existing $3.9 billion fine by the end of the year, it emerged this week.

Reacting to MTN’s suit filed against the federal government at a Lagos High Court, weekend, Minister of Communications, Mr. Adebayo Shittu yesterday insisted that the telecommunications company risks another fine if it fails to pay at the expiration of the deadline, irrespective of the court action.

In its statement, MTN signalled that it does not believe that the NCC is permitted to take further action until the court has ruled on the matter. As a business, we simply do not have the ability to pay a N780 billion fine by year-end, as this will have dire consequences for the company’s financial stability.

“The fact of the case is that the decision to go to court was a very hard one for MTN, coming after all attempts at a sustainable resolution were exhausted”.

She, however, added that notwithstanding the action, the company will continue to engage with the Nigerian authorities in an effort to reach an amicable resolution in the interest of all stakeholders. “We hold the Nigerian Government, its national objectives, laws and regulations in the highest regard”, Oyagbola said.

The regulator fined the telecoms operator N1.04 trillion, but later reduced it by 25 per cent after the intervention of President Muhammadu Buhari, amid pressure and negotiations from the company’s parent body in South Africa. As it stands, payment is due on 31 December 2015. “Fabian Ajogwu (SAN) and Dr. Oladapo Olanipekun (SAN) — is challenging the powers of NCC to impose such a fine on it.

The Nigerian Communications Commission imposed the penalty on MTN for failing to disconnect 5.1 million unregistered SIMs by an agreed-upon deadline.

Stating that the deadline of seven days to disconnect 5.2 million subscribers was grossly inadequate and impracticable, the telecoms company said the deadline to disconnect 5.2 million subscribers was unfair and ran contrary to the requirement to give adequate notice to the subscribers and all operators.