• Friday, March 29, 2024
businessday logo

BusinessDay

Update 1: MTN completes N330billion fine payment for SIM infraction

MTN closes in on Dangote Cement for most capitalised stock

MTN Nigeria has paid the sixth and final instalment of N55 billion to the Nigerian Communications Commission (NCC).

This completes MTN’s payment of the N330 billion negotiated settlement agreed between the NCC and the telecommunications company in 2016.

According to Tobechukwu Okigbo, MTN’s Chief Corporate Relations Officer, the successful resolution of the fine was the outcome of active collaboration between the NCC and MTN.

“We are very pleased to have completed the payment of the N330 billon negotiated settlement with the NCC. We are particularly gratified to be in a position to have fully met the terms of the settlement within the agreed timeframes. I would like to thank the NCC for their constructive and collaborative approach to this issue, and believe that we emerge from it with a stronger relationship, focused on ensuring maximum value is delivered to our people, from a strong and growing telecoms sector.”

It will be recalled that MTN and the NCC reached a negotiated settlement in relation to the fine imposed on MTN in 2015 as a result of a dispute over the disconnection of unregistered SIM cards amongst its subscriber base.

MTN’s N1.04trillion fine was reduced to N330billion after negotiations with the Federal Government, and there was an agreement for the fine to be paid in six tranches after the initial N50billion paid in “goodwill”, as part of the conditions for continued negotiations.

In June 2016, MTN Nigeria paid the first instalment of N30billion to the NCC. This was in addition to the goodwill payment, which brought the total amount paid by MTN to N80billion.

Other dates of payment for the fine include, March 31, 2017, when another N30billion was paid into the NCC’s Treasury Single Account (TSA) with the Central Bank of Nigeria (CBN).

Thereafter, subsequent payments of N55billion were made on December 31, 2018 and March 31, 2019. The final payment has been made on May 31, 2019, to complete the N330billion 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, 2019.

 

Jumoke Akiyode-Lawanson