It will be recalled that the Nigerian Communication Commission (NCC) on October 20, 2015, imposed a fine of N1.04 Trillion on MTN Nigeria for infraction of the provisions of the NCC (Registration of the telephone subscribers) Regulations, 2011; for failure to disconnect 5.1million improperly registered lines within the prescribed deadline.
According to the Executive Vice Chairman (EVC) of NCC, Prof. Umar Danbatta, the Commission has always carried industry and stakeholders along in taking transparent regulatory actions, adding that at no point will the regulator do anything to jeopardise the business health of the entire sector.
“We were careful not to take decisions that were likely to cripple the business interest of the operators we regulate. Besides, the downturn of the global economy is biting hard on everybody and every sector, so we must therefore be sensitive and flexible in our decisions.” Africa and global communication investors are excited about the Nigerian telecommunication environment and have made Nigeria investors first choice – Prof. Umar Danbatta
After nearly six months of negotiation and re-negotiation over the N1.04 Trillion fine imposed on MTN Nigeria by the Nigerian Communications Commission (NCC) the fine was yesterday reduced to N330Billion. This amount includes the “goodwill” payment of N50Billion earlier made by MTN to the government. The balance of N280Billion will be made in six tranches in the following order. By the terms of agreement, MTN will pay N30Billion into NCC’s Treasury Single Account (TSA) with the Central Bank of Nigeria (CBN) 30 days from the date of the agreement dated June 10, 2016.
The remaining payments will be made accordingly:
- N30Billion – March 31, 2017
- N55Billion – March 31, 2018
- N55Billion – December 31, 2018
- N55Billion – March 31, 2019
- N55Billion – May 31, 2019
The agreement and resolutions also requires that MTN undertakes the following:
- Tender an apology in line with the apology previously tendered in correspondences relating to this matter to the Government of Nigeria and Nigerians within one month of the execution of the Agreement.
- Subscribe to the voluntary observance of the Code of Corporate Governance for the Telecoms Industry and would ensure compulsory compliance when the said Code is made mandatory for the telecommunications industry.
- Undertake immediate steps to ensure the listing of its shares on the Nigerian Stock Exchange as soon as commercially and legally possible after the date of execution of the Settlement Agreement.
In arriving at the agreement, the EVC of NCC, Prof. Umar G. Danbatta said that the decision to fine MTN was taken based on professionalism and global best practices, and in line with the NCC core value “to be fair, firm and forthright”.
Nigerian startups raised $55.4m in Q1 2020; over 99% of which came from foreign sources. Find out more when you download the full report.
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