Nigeria says $5.2bn MTN fine stays as deadline passes

MTN’s share price slumped by more than 8% on Tuesday morning over fresh concerns among investors about whether the group, which is listed on the JSE, will have to pay the full amount of a record-setting fine imposed on it by Nigerian authorities.

Nigerian Communication Commission (NCC) has pushed back the deadline for payment of the $ billion fine it slapped on Africa’s largest telecom operator, MTN Group, unit in the country until negotiations are concluded, the mobile service firm said in a statement.

LEADERSHIP recalls that a Lagos-based lawyer, Oluyinka Oyeniji, applied for an exparte order at the FHC, Lagos, seeking to restrain NCC from enforcing the N1.04 trillion sanctions it imposed on MTN Nigeria.

He added that there is “overwhelming evidence” of non-compliance and “obvious disregard to the rule of engagement” by MTN.

Specifically, they said the burden of the wage was lighter when oil sold at one hundred and twenty-six dollars as against the current forty-one dollars per barrel.

Ojobo pointed out the fine imposed on MTN was the second within two months after the operators were given a seven-day ultimatum to deactivate all unregistered and improperly registered Subscriber Identification Module (SIM) cards.

The NCC confirmed the deadline extension and that MTN had admitted the breach in a letter and “pleaded for leniency”. The Commission has acknowledged this and is looking into their plea without any prejudice to the fine.

“Shareholders are educated that the official administrator concerning the organization, Mr Phuthuma Nhleko, has by and by met with the Nigerian powers to proceed with the progressing talks with them in regards to the fine”, the announcement said. After an audit and further discussions, MTN was the only company left that “showed no sign of compliance at all”.

NCC spokesman Tony Ojobo told AP that all main phone providers in Nigeria ( MTN, Globacom, Airtel and Etisalat) were fined after allegedly failing to disconnect unregistered SIM cards.

“Others complied while MTN flouted the fine”, Ojobo said.