The Nigerian Communications Commission (NCC) has confirmed MTN Nigeria’s adherence to the deal entered in 2015 after the South African company was fined ₦1.04 trillion for non-compliance with the deactivation of unregistered SIM cards on its network.
The commission confirmed that MTN Nigeria is in line with the payment agreement reached in 2015 for the reduced amount of the fine of ₦330billion.
“It is a whopping sum of money and they have not defaulted,” the Executive Vice Chairman of NCC, Umar Danbatta said. He added that the payments are being made in line with the terms of the agreement.
For MTN Nigeria’s major contributions to the economic and digital growth of the nation’s economy, Danbatta reassured the company of the commission’s continued cooperation.
The payment schedule of the agreement:
- ₦50 Million – to the government- Paid
- ₦30 Billion – NCC Treasury Single Account( Between June 10, 2016, and 30days after the agreement.)
- ₦30 Billion – March 31, 2017- Paid
- ₦55 Billion – March 31, 2018
- ₦55 Billion – December 31, 2018
- ₦55 Billion – March 31, 2019
- ₦55 Billion – May 31, 2019
Part of the terms of the deal struck with the telecommunications industry regulator was that MTN Nigeria would be listed on the Nigerian Stock Exchange, and the company revealed earlier in 2018 that the listing is slated for later this year.
Aside the next batch of payment in December 2018 and the subsequent, all that’s left for the telecom giant is going public in Nigeria.
And the listing is expected to increase the market capitalisation of the NSE by 22% while also encouraging other multinational companies and telcos to follow suit.
Will the recent drop to a 3-month low of Nigerian stocks — attributable to the President Muhammadu Buhari’s announcement of his 2019 re-election bid — have an effect on MTN Nigeria’s IPO plan?
Nigerian startups raised $17.6m in Q1 2019, 8.5% higher than they did in Q1 2018. Find out more in the latest quarterly edition of the Nigerian Startup Funding Report here.