TVC E, BUSINESS – Minister of Communication, Adebayo Shittu has advised telecom provider, MTN Nigeria to drop its legal action over a $3.9 billion fine against Nigerian Communications Commission to help facilitate talks on a possible settlement.
It would be recalled that the Nigerian Communications Commission (NCC) had in October 2015 slapped a $5.2 billion fine on MTN for failing to disconnect users with unregistered SIM cards but after weeks of negotiations reduced it by 25 percent.
MTN, which makes about 37 percent of its revenue from Nigeria, then filed a suit in the West African country questioning NCC’s legal grounds for imposing the penalty.
“I’m not aware of any out-of-the-court settlement,” telecoms minister Adebayo Shittu told reporters.
Shittu said President Muhammadu Buhari will have the final decision on the matter, adding that MTN might be advised to withdraw the court case filed against the fine.
“If they withdraw it creates a better environment, an environment where there is no stress or pressure on either side,” he said.
A judge in Lagos, Nigeria’s commercial capital, last week gave the company until March 18 to try to reach a settlement with the Nigerian authorities over the fine. The prospect of a lower fine boosted MTN shares. [nL8N15622A]
The fine equates to more than twice MTN’s annual average capital spending over the past five years.
