The Federal Government of Nigeria is expecting the second tranche payment of N30billion from telecoms giant, MTN by March 2017.
Adebayo Shittu, minister of communications, said the Federal Government was planning to use revenue from the telecoms industry and MTN fine for the development of the nation.
“When MTN was fined, they did four things; one they accepted that they were in default, two, they apologised, three, they committed themselves never to allow such a thing to happen and number four, they asked for remission.
“Government had to look at a number of factors because if they have to pay this amount; they will pack up. We also knew that we invited the international community to come and invest and anything that will be done to shake the confidence of international investors in the Nigerian economy must be avoided,” Shittu said.
Months after negotiation and re-negotiation over the N1.04 trillion fine imposed on MTN, Nigeria by the Nigerian Communications Commission (NCC), for failing to disconnect over five million improperly registered SIM cards, the Federal Government agreed to the operator’s plea for leniency and reduced the fine to N330billion which was to be paid in six tranches after the initial N50billion paid in “goodwill”, as part of the conditions for continued negotiations.
It should be recalled that in June 2016, MTN Nigeria paid the first instalment of N30billion to the NCC. This was in addition to the goodwill payment, which brought the total amount paid by MTN to N80billion.
According to the agreement and resolution signed by Umar Danbatta, Executive Vice Chairman, NCC, Felix Adeoye, NCC Secretary, Ferdinand Moolman, CEO, MTN Nigeria and Uto Ukpanah, Company Secretary, MTN Nigeria, other dates of payment for the fine include, March 31, 2017 where another N30billion is to be paid and thereafter, subsequent payments of N55billion on December 31, 2018, March 31, 2019 and May 31, 2019, to complete the N330billion fine imposed on the telco.
In arriving at this agreement, Umar Danbatta, said the regulator’s decision was taken based on professionalism and global best practices and in line with the NCC’s core value “to be fair, firm and forthright.”
According to Danbatta, “the Commission has always carried industry and stakeholders along in taking transparent regulatory actions. At no point will the regulator do anything to jeopardise the business health of the entire sector.”
Analysts say that the total of N80billion paid by MTN Nigeria as at when due, shows the commitment of the company to the country.
“MTN has contributed immensely to the Nigerian telecommunications industry and the economy at large, they also have the largest number of subscribers, and the Nigerian market is their biggest market.
“They came into the country at a time when many other operators thought it was impossible to operate in the market, they have also invested so much and will continue to invest in the country, so you can know how committed they are to the Nigerian market,” said Lanre Ajayi, immediate past President, Association of Telecommunications Companies of Nigeria.
Ferdi Moolman says; “MTN is delighted that the matter of the fine imposed by the NCC was amicably settled in the interest of all parties.”
Moolman said he was pleased to announce that the first payment of N30billion in terms of the settlement was disbursed to the NCC in June, in addition to the earlier payment of N50billion in February 2016, totaling N80billion.
“We are taking steps to ensure that we comply with all regulatory directives and determined not to breach any agreements. It is fair enough that the Federal Government agreed to reduce the fine and stagger the payment, so we are working to make sure that we pay all the fine as at when due,” said MTN.
Jumoke Akiyode
