NCC, MTN reach agreement on $5.2b fine

Reps Fault Agreement

After about six months of negotiation, re-negotiation and fireworks over the $5.2 billion fine later slashed to $3.9 billion slammed on MTN Nigeria for contravening regulatory orders in the country, the South African firm has finally reached an agreement with the Federal Government through the Nigerian Communications Commission (NCC) on the payment pattern, which will be now be staggered from now till 2019.

Accordingly, MTN has agreed to pay $1.671 billion (about a third of the $5.2 billion) over three years to settle its case with the Nigerian government. The case started in October.

Meanwhile, the House of Representatives yesterday faulted telecommunication giant, MTN ‘s offer of N330 billion to federal government in place of the N1. 04 trillion fine for breaching SIM cards registration rules.

Chairman of the House Committee on Telecommunications, Mr. Saheed Akinade Fijabi, who addressed journalists yesterday in Abuja described the MTN’s latest offer as a surprising development since the lower legislative chamber is yet to conclude its investigation into MTN’s out of court settlement with the federal government.

According to the NCC, in its own statement, signed by the Director of Public Affairs, Tony Ojobo, “MTN is pleased to inform shareholders that the matter has been resolved with the Federal Government of Nigeria.

“MTN Nigeria has agreed to pay a total cash amount of N330-billion over three years (the equivalent of $1.671 billion at the official exchange rate and $902 million at the Lagos parallel market rate) to the government in full and final settlement of the matter.”

The telecommunications firm, which controls about 39 per cent market share and currently services about 57 million customers in Nigeria, added that the earlier N50 billion paid on February 24 was part of the settlement.

According to the NCC, in its own statement, signed by the Director of Public Affairs, Tony Ojobo, the balance of N280 billion will be made in six tranches.

The statement disclosed that MTN will pay N30 billion 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.

Other dates of payments include: March 31, 2017 (N30 billion); March 31, 2018 (N55 billion); December 31, 2018 (N55 billion and the balance will be in May 31, 2019 (N55 billion).

The lawmaker said that the Minister of Communications and officials of the Nigerian communications commission (NCC), and MTN would be summoned to appear before the House on Monday to shed more light on the resolution with the MTN.