In a significant move towards the resolution of the fine crisis plaguing it, South African telecoms company MTN has pulled out of court and paid N50bn or $250m to Nigerian authorities paving way for an agreement over a $3.9bn fine it faces from the government for failing to disconnect unregistered sim cards.
The “good faith payment” from MTN came alongside a decision to withdraw the case from the High Court in Lagos, as part of an attempt to “achieve an amicable settlement,” MTN said on Wednesday. In a statement, the company added that it hopes the payment will go towards an eventual settlement.
Nigerian authorities decision to levy the penalty, which has been cut from an original $5.2bn, has weighed on MTN’s share price and threatens its profits. The company has engaged Eric Holder, the former attorney general under Barack Obama, to help reach a settlement.
MTN added that Phuthuma Nhleko, its executive chairman, is leading negotiations with the government.
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