The Federal Government of Nigeria is expecting MTN’s final tranche payment of N55 billion to complete N330 billion SIM infraction fine by May 31, 2019.
So far, the telco has made a total payment of N275 billion out of the N330 billion fined by the Nigerian Communications Commission (NCC) in 2015 for failing to disconnect over 5 million improperly registered SIM cards.
According to NCC, the telecoms company was fined for “infraction of the provision of the NCC Telephone Subscribers Registration Regulations 2011; for failure to disconnect 5.2 million improperly-registered Subscriber Identification Modules (SIM) lines within the prescribed deadline, because these lines had economic activities on them without proper registration”.
MTN’s N1.04 trillion fine was reduced to N330 billion after negotiations with the Federal Government, and there was an agreement for the fine to be paid in six tranches after the initial N50 billion paid in “goodwill”, as part of the conditions for continued negotiations.
In June 2016, MTN Nigeria paid the first instalment of N30 billion to the NCC. This was in addition to the goodwill payment, which brought the total amount paid by MTN to N80 billion.
On March 31, 2017, another N30 billion was paid into the NCC’s Treasury Single Account (TSA) with the Central Bank of Nigeria (CBN).
Thereafter, subsequent payments of N55 billion were made on December 31, 2018 and March 31, 2019. The final payment is due on May 31, 2019, to complete the N330 billion fine imposed on the telco.
Part of the fallout of the negotiated terms of payment of the fine is the listing of MTN on the Nigerian Stock Exchange (NSE), and this has been done, as the company listed by introduction on Thursday, May 16.
Speaking on the state of MTN fine payment at the valedictory service organised for Adebayo Shittu, minister of communications, in Abuja on Monday, Umar Garba Danbatta, executive vice chairman (EVC) of NCC, said the Commission had succeeded in empowering Nigerians “to control, manage and own telecommunications companies in Nigeria by owning shares in MTN Nigeria”.
Danbatta explained that, through the MTN’s listing on the NSE, the Commission had translated into action one of its important functions, which is to promote local investment and ownership in the telecom sector.
“By MTN listing on the stock exchange, we have given reality to that important function of the Commission. Through this listing, Nigerians will be empowered to control, own and manage one of the dominant telecommunications companies in the country. We consider this a very important milestone in translating the function of the Commission into reality, as enshrined in the Nigerian Communications Act 2003,” he said.
Jumoke Akiyode-Lawanson
