MTN Nigeria to pay record fine over 3 years. (Image Source: http://allafrica.com/).
MTN Nigeria has revealed that it has reached an agreement with the government of Nigeria regarding its record fine.
Back in October 2015, the Nigerian Communications Commission had fined MTN for failing to disconnect 5.2 million unregistered subscribers on its network. The fine stood, at the time, at a monumental $5.2 billion USD.
The operator revealed in a media statement that it has agreed to pay a total cash amount of Naira 330 billion over three years.
According to MTN, the Naira 50 billion paid in good faith and without prejudice by MTN Nigeria on 24 February 2016 forms part of the monetary component of the settlement leaving a balance of Naira 280 billion outstanding which will be discharged as follows:
Naira 30 billion on 8 July 2016
Naira 30 billion on 31 March 2017
Naira 55 billion on 31 March 2018
Naira 55 billion on 31 December 2018
Naira 55 billion on 31 March 2019
Naira 55 billion on 31 May 2019
According to MTN, in addition to the monetary settlement set out above:
– MTN Nigeria subscribes to the voluntary observance of the Code of Corporate Governance for the Telecommunications Industry and will ensure compulsory compliance when the said Code is made mandatory for the Telecommunications Industry.
– MTN Nigeria undertakes to take 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;
– MTN Nigeria shall always ensure full compliance with its license terms and conditions as issued by Nigerian Communication Commission (“NCC”).
MTN Group Executive Chairman Phuthuma Nhleko said: “he expresses his thanks and gratitude to the FGN for the spirit in which the matter was resolved and believes this is the best outcome for the Company, its stakeholders, the FGN and the Nigerian people and that the relationship between MTN, the FGN and the NCC has been restored and strengthened”.
Staff Writer