…N30 billion was due today
MTN Nigeria has kept to its agreed schedule with Nigerian authorities to pay down its N330 billion fine. This has doused fears that the telecom giant might default on its scheduled payment after declaring a loss in the 2016 financial year.
The telecommunications company has however upheld its promise and paid N30 billion as its second tranche of payment to the Nigerian government, BusinessDay confirms.
Sources close to MTN Nigeria say, “MTN has been taking all steps to ensure that they comply with all regulatory directives and because of the company’s determination not to breach any agreements, I can confirm that MTN has made the second due payment of N30 billion to the NCC.”
The Nigerian Communications Commission (NCC) had imposed a N1.04trillion fine on MTN, Nigeria for failing to disconnect over five million improperly registered SIM cards but 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.
“Government had to look at a number of factors when the Nigerian Communications Commission (NCC) imposed a N1.04 trillion fine on MTN because if they had to pay this amount; they would 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.
MTN Nigeria paid the first installment of N30billion to the NCC in June 2016. 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, today, March 31, 2017 when another N30billion is due and has been paid.
Subsequent payments of N55billion on December 31, 2018, March 31, 2019 and May 31, 2019, to complete the N330billion fine imposed on the Telco are expected to be made.
In arriving at this agreement, Umar Danbatta, the Executive Vice Chairman, NCC said the regulator’s decision was taken, based on professionalism and global best practices and in line with the NCC core value “to be fair, firm and forthright.”
According to the EVC, “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 N110billion 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 see how committed they are to the Nigerian market,” Lanre Ajayi, immediate past President, Association of Telecommunications Companies of Nigeria, told BusinessDay.
Jumoke Akiyode
