At Last, FG Reduces MTN Fine to N330bn

After nearly six months of negotiation and re-negotiation between
MTN and Federal Government over the N1.04Trillion fine imposed on
MTN, Nigeria by the Nigerian Communications Commission (NCC),
the fine was on Friday reduced to N330 billion.

In statement signed by NCC’s Director of Public Affairs, Mr. Tony
Ojobo, and which was made available to the media in Abuja, said this
amount includes the “goodwill” payment of N50 billion earlier made
by MTN to the government.
The statement read: “The balance of N280 billion will be made in six
tranches in the following order. By the terms of agreement, 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,
March 31, 2019: – N55 billion and the balance will be
in May 31, 2019: N55 billion.
The agreement and resolutions, according to the statement were
jointly signed by the Executive Vice Chairman (EVC) of NCC, Prof.
Umar Danbatta, Secretary of the Commission, Mr. Felix Adeoye, Chief
Executive of MTN, Fredinand (Fredi) Moolman and MTN’s Company
Secretary, Mrs. Uto Ukpanah.
Witnessed to the agreement included, 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.
The statement further explained that it was also agreed that MTN
shall undertake the followings: “Tender an apology in line with the
apology previously tendered in correspondences relating to this
matter to the Government of Nigeria and Nigerians within the one
month of the execution of this Agreement.
“Subscribe to the voluntary observance of the Code of Corporate
Governance for the Telecoms Industry and would ensure compulsory
compliance when the said Code is made mandatory for the
telecommunications industry.
“Undertake 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 this Settlement Agreement.”
Both parties THISDAY also learnt agreed that these terms of
settlement cannot be altered, varied, annulled or modified in any
respect, except by writing duly executed by both parties; and the
terms of settlement constitute all the terms and conditions of the
settlement and supersede and replace any previous offers,
representations and terms.
“It will be recalled that the NCC on October 20, 2015, imposed a fine
of N1.04 trillion on MTN for infraction of the provisions of the
Nigerian Communication Commission (registration of the telephone
subscribers) regulations, 2011 for failure to disconnect 5.1million
improperly registered lines within the prescribed deadline.”
In arriving at the agreement, the EVC said our decision was taken
based on professionalism and global best practices, and in line with
the NCC core value “to be fair, firm and forthright”
“We were careful not to take decisions that were likely to cripple the
business interest of the operators we regulate. Besides, the
downturn of the global economy is biting hard on everybody and
every sector, so we must therefore be sensitive and flexible in our
decisions.” the statement added.
According to the EVC, the Commission has always carried industry
and stakeholders along in taking transparent regulatory actions,
adding that at no point will the regulator do anything to jeopardise
the business health of the entire sector .