MTN’s N1.04 trn fine still remains- NCC

The Nigerian Communications Commission (NCC)   says the N1.04 trillion fine imposed on mobile network operator, MTN for failing to comply with the regulator’s directive to de-activate unregistered Subscriber Information Modules (SIM) is unavoidable.

This follows an earlier statement by MTN stating  that  yesterday’s deadline for payment of  the fine had been deferred until conclusion of negotiations with the regulator.

An official statement signed by Tony Ojobo, the NCC’s Director of Public affairs, confirmed that the commission had acknowledged MTN’s plea for leniency, but said the fine still remains.

The NCC statement read that; “The fine of N1.04Trillion on MTN Nigeria by the NCC was done in the interest of the public which has been at the receiving end of security challenges.

“The commission on its part, has a statutory responsibility to monitor and enforce compliance to the rules, more so when national security is at stake.

“As a responsible regulator, the NCC will not stand by and watch rules and regulations for engagement being flouted by any operator. The commission has adopted a smart regulation in its oversight function in the industry; hence it has always weighed the implications of sanctions, that is why it had to place the appropriate sanction accordingly.”

The statement explained that national interest is paramount because when lives are lost they cannot be replaced.

A source at the NCC told BusinessDay that negotiations are ongoing between the regulator, government officials and MTN.

“Meetings are still being held concerning this issue and whatever is concluded at the meetings will decide if MTN will be given more time to pay the fine and how, but the issue is that the fine still remains.”

MTN confirmed the ongoing meetings by stating that its acting executive chairman, “Phuthuma Nhleko, has personally met with the Nigerian authorities to continue the ongoing discussions with them, regarding the fine of N200, 000 for each unregistered subscriber, the equivalent of US$5.2 billion imposed on MTN Nigeria by the NCC. These discussions include matters of non-compliance and the remedial measures that may have to be adopted to address this.”

When asked if one of the remedial measures discussed includes a plea to reduce the fine payment by up to 80 percent, as previously reported by the media, Funso Aina, MTN’s Public Relations Officer told BusinessDay that the company was only ready to say what it had released in its official statement.

Some analysts had warned that the huge fine, despite its arithmetic correctness, might serve as dissincentive to investors looking forward to establishing a foothold in Nigeria.

Jumoke Akiyode