MTN to pay R25-billion fine
MTN has reached a settlement with the Federal Government of Nigeria to pay a 330 billion naira (R24.8 billion) fine over three years.
MTN Nigeria was handed a fine for failing to disconnect 5.2 million unregistered SIMs on its network by a Nigerian Communications Commission-given (NCC) deadline.
The NCC originally fined the operator ₦200,000 (R15,061) per unregistered SIM active on its network.
This fine was later reduced by 25% to ₦780 billion (R59 billion), but MTN elected to take the matter to Nigeria’s courts.
It later dropped the case and paid a “good faith” sum of ₦50 billion (R3.8 billion at the time) in an effort to achieve an amicable settlement.
MTN said this amount forms part of the monetary component of the settlement, leaving a balance of ₦280 billion outstanding which will be discharged as follows:
- 8 July 2016: 30 billion naira (R2.3 billion)
- 31 March 2017: 30 billion naira (R2.3 billion)
- 31 March 2018: 55 billion naira (R4.1 billion)
- 31 December 2018: 55 billion naira (R4.1 billion)
- 31 March 2019: 55 billion naira (R4.1 billion)
- 31 May 2019: 55 billion naira (R4.1 billion)
In addition to the monetary settlement, MTN said it will:
- Subscribe to the voluntary observance of the Code of Corporate Governance for the Telecommunications Industry and will ensure compulsory compliance when the said Code is made mandatory for the Telecommunications Industry.
- Undertake to take immediate steps to ensure the listing of its shares on the Nigerian Stock Exchange as soon as commercially and legally possible after the date of execution of the settlement agreement.
- Always ensure full compliance with its licence terms and conditions as issued by the Nigerian Communication Commission.
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