Governors insist MTN must pay $5.2bn fine

State Governors Wednesday night insisted that the MTN must pay the N$5.2billion (about N1.04trillion) fine imposed on it by the Nigerian Communications Commissions (NCC), urging the Federal Government to expedite action in ensuring that the communications giant pays.

The governors also said payment of the N18,000 is no longer possible under the present circumstances of reduced revenues to the government.

They argue that minimum wage was imposed on them when oil was being sold for $126 as against its present cost of $41.

The 36 state governors who met at the presidential villa under the auspices of the Nigerian Governors Forum (NGF) also said they have resolved to meet with President Muhammadu Buhari, to find a way out of the pressing hardship in the face of the deteriorating state of the economy.

Abdul’aziz Yari, Zamafara state governor and chairman of the NGF, who briefed journalists after the meeting, which lasted for about three hours said the forum received a comprehensive brief on the development from the NCC’s acting Executive Vice Chairman Umar Garba Danbatta.

The NCC had fined the MTN for failing to meet a deadline to disconnect 5.2 million unregistered subscribers earlier this year.

Following the fine imposed on the firm, it’s Chief Executive Officer Sifiso Dabengwa announced his resignation last week.

Records show that the network operator has already lost about 24 per cent of their share value since the fine was made public on October 26.

“The Forum also commended the NCC for its strict compliance and enforcement of the law with regards to the fine issued to MTN and advised the Federal Government to ensure prompt and full payment” he said.

Reading out a communique issued at the end of the meeting, Yari, said the states could no longer bear the N18,000 minimum wage that was imposed on them when oil sold for $126 as against its present cost of $41.

According to him, “We resolved that we must look at ways to enhance revenue generation and at the same time time look at ways to cut our overhead costs more especially the political office holders’ salaries and other overhead expenses.

“The situation is no longer the same when we were asked to pay N18,000 minimum wage, when oil price was $126 (per barrel) and continued paying N18,000 minimum wage when the oil is $41 and the source of government expenditure is from oil, and we have not seen prospects in the oil industry in the near future.

“We will diversify our economy in the area of agriculture and mining.

But at the same time, we should understand our situation where some of us (states) today are taking N100million take home  (monthly allocation) and the have salaries in particular of over N2billion to pay”.

Elizabeth Archibong