MTN Pays N50bn, Withdraws Court Case

At last, the embattled South African telecoms company, MTN Nigeria, has withdrawn its case against the Nigerian Communications Commission (NCC) at the Federal High Court, Lagos, in response to a request by the authorities. In addition, MTN said it has paid N50 billion to the Federal Government as a gesture of good faith and commitment to continued efforts towards an amicable resolution.

New Telegraph learnt that the N50 billion payment represents just about 6.4 per cent of the N780 billion, thereby cutting the balance to N730 billion. The move is seen as a renewed step towards a negotiated settlement and to create a conducive atmosphere for further negotiations.

In a statement yesterday, MTN Nigeria’s Chief Executive Officer, Mr. Ferdi Moolman, said: “This is a most encouraging development. It demonstrates a willingness and sincerity by both parties to work together towards a positive outcome.” Speaking on the withdrawal of the court case and the N50 billion payments, Moolman said: “We are hopeful at this stage.

Along with the authorities, it is clear that we are collectively committed to working towards a solution that is of mutual benefit to all parties. “Our industry in Nigeria is an incredibly important example of the remarkable progress in Information and Communication Technology (ICT), particularly as a much-needed catalyst for socio-economic growth and development at this time.”

However, the Public Affairs Director at NCC, Mr. Tony Ojobo, told New Telegraph on phone yesterday that the Commission was not aware of the withdrawal of the legal action and payment of N50 billion by MTN. “Well, we cannot confirm this information.

We just heard about it in the news as every other person. We have not received any official communication from MTN regarding the two actions it said it had taken,” Ojobo said. Reacting to the development, President, Association of Telecoms Companies of Nigeria (ATCON), Mr. Lanre Ajayi, described MTN’s action as “respect for the Nigerian authorities.”

He said: “This is a good development. It shows MTN’s respect for our government. The minister gave MTN two basic conditions to withdraw the court case and pay part of the sanction before government can come to the roundtable for an out-ofcourt- settlement.

“Interestingly, those two conditions have been met by MTN and I believe this would create a favourable platform and a friendly environment for the amicable resolution of the lingering issue.” In his reaction, President, National Association of Telecoms Subscribers (NATCOMS), Mr. Deolu Ogunbanjo, said: “The latest action by MTN suggests the issue is heading towards a final resolution.”

It would be recalled that NCC had imposed a N1.04 trillion fine on MTN Nigeria in October 2015 for its failure to disconnect 5.1 million improperly registered lines within the prescribed deadline. 

Subsequently, the fine was adjusted by 25 per cent to N780 billion, an amount that was considered inimical to the survival of the firm’s business. MTN subsequently sought judicial determination as a means of protecting the local ecosystems valued and supported by MTN’s business.On January 22, MTN announced decision to settle out of court with the NCC.

However, the Minister of Communications, Mr. Adebayo Shittu, on February 8, in Lagos, insisted that the mobile giant must pay ‘substantial part’ of the N780 billion fine imposed on it before any out-of-court settlement could be honoured by the authorities. As a second condition for accepting the out-ofcourt offer, Shittu said that MTN must also withdraw the court case already instituted against the telecoms regulator.

Shittu noted that the telco violated extant laws for which it accepted responsibility and wrote a letter of apology, promising to be a responsible corporate citizen. The infractions were committed under Dr. Goodluck Jonathan’s administration, which, according to Shittu, looked the other way. It took the courage of the present government to apply the law, he said. MTN begged for a revision of the sanction, “which Mr. President graciously acceded to,” but the company turned around to say it had no money to pay.

New Telegraph