Thursday , June 1 2023
Breaking News
Home / Business / Finally, MTN Agrees To Pay N330 Billion Fine

Finally, MTN Agrees To Pay N330 Billion Fine

MTN-operationsAFTER eight months of going back and forth, telecom operator, MTN, has finally settled issues with the Nigerian government as the Nigerian Communications Commission, NCC yesterday reduced the N1.04 trillion fine on the operator to N330 billion.

The operator was also allowed to pay the money in a staggered payment plan that will last till May 31, 2019. The fine was imposed last October over alleged inability of the operator to disconnect about 5.1 million improperly registered users on its network.

Besides the payment the operator is expected to have its shares listed in the Nigerian Stock Exchange, NSE and as well tender an apology to the Government of Nigeria and Nigerians within one month of the execution of the Agreement.

These were the terms in which the federal government of Nigeria said it could consider the matter finally resolved. Vanguard gathered authoritatively that the N330bn includes the “goodwill” payment of N50Billion earlier made by MTN to the government. The balance of N280Billion will be made in six tranches in staggered arrangement which will last May, 31 2019.

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, (yesterday) and on March 31, 2017, It will pay N30Billion; In March 31, 2018 it is also to pay another N55Billion and on December 31, 2018 it will pay N55Billion.

Subsequently, March 31, 2019 it will pay N55Billion and the balance of N55 bn will be paid May 31, 2019 The agreement and resolutions were signed yesterday by the Executive Vice Chairman (EVC) of NCC, Prof. Umar G. Danbatta, NCC Commission Secretary, Mr. Felix Adeoye, Chief Executive of MTN, Fredinand (Fredi) Moolman and MTN’s Company Secretary, Mrs. Uto Ukpanah, and witnessed by Mr. Tony Ojobo, NCC, Director, Public Affairs; Mr. Usman Malah, Chief of Staff to the EVC, NCC; Ms Helen Obi, Assistant Director, Legal, NCC and Ms. Amina Oyagbola, Corporate Executive, MTN..

House of Reps kick

Meanwhile, Chairman of House of Representatives Committee on Telecommunications, Saheed Fijabi yesterday also kicked out at the arrangement, telling journalists in Abuja that it was ludicrous that even when the House Committee investigating the alleged MTN offence had not concluded investigations, some powerful forces had colluded with the operator to make mess of the fine.

He disclosed that the Minister of Communications, Adebayo Shittu and the Executive Vice Chairman of NCC, Prof. Umar Garba Danbatta have been invited to appear on Monday to explain the reason for recent development. According to Fijabi, the said N330Bn was the amount MTN had long offered to pay but was rebuffed by NCC.

Why the regulator would turn around to accept is a wonder. Fijabi noted that going by the NCC Act, instead of reducing the fine of N1.04 trillion, increment was more appropriate considering the enormity and consequences of the company’s negligence that led to the fine.

He recalled that NCC had in a letter to the Attorney General of the Federation AGF, and Minister of Justice, Abubakar Malami on the proposal of MTN’s N330Bn, said that the amount was a far cry, but expressed shock at the sudden change of mind.

“In a letter dated March 1, 2016, NCC said: “The proposal to pay the sum of N300 billion as against the fine of N1.04 trillion (and subsequently reduced to N700 billion by the Federal Government of Nigeria, FGN) is not supported by any verifiable justification, I wonder why the sudden change of mind” he submitted.

Recall that the matter which the NCC admitted has cast a shadow in the Nigerian telecom development, has seen to a 25 percent reduction of the fine, series of litigations and subsequent withdrawal of law suits, all in a bid to seek a resolution that never came.

However, in this latest settlement agreement, MTN admitted that in addition to the monetary settlement, it was required to: “subscribe to the voluntary observance of the Code of Corporate Governance for the Telecommunications Industry and will ensure compulsory compliance”.



Check Also

NNPCL unfolds new fuel price

The Nigerian National Petroleum Company Limited (NNPCL) has raised the pump prices of petrol (PMS) …

Akwa Ibom Gov appoints SSG, CPS

Gov. Umo Eno of Akwa Ibom State has appointed Mr Enobong Uwah, as the Secretary …

Social Media Auto Publish Powered By :