MTN withdraws suit, Pays FG N50bn, FG Denies (Details)

MTN Nigeria has announced its withdrawal of its suit against the Nigerian Communications Commission and paid N50 billion for the resolution of the fine imposed on the telecommunications company.

MTN was fined N1.04 trillion in 2015 for failing to deactivate 5.1 million unregistered SIM cards, however, the fine was later reduced to N780 billion after the company entered into negotiations with the Nigerian government.

The telecommunications giant, commenting on the resolution on Wednesday, stated that: “MTN paid N50bn to the federal government as a gesture of good faith and commitment to continued efforts towards an amicable resolution.”

“This is a most encouraging development. It demonstrates a willingness and sincerity by both parties to work together towards a positive outcome,” the CEO of MTN Nigeria, Ferdi Moolman said.

“We are hopeful at this stage. Along with the authorities, it is clear that we are collectively committed to working towards a solution that is of mutual benefit to all parties. Our industry in Nigeria is an incredibly important example of the remarkable progress in ICT particularly as a much needed catalyst for socio-economic growth and development at this time.”

The Federal government has however denied the report via the Special Assistant to the Minister of Communications, Victor Oluwadamilare in an interview with Vanguard Newspapers.

He stated that the reports had not been officially communicated to the government and was still under observance.

He said: “That has not been confirmed and I can confirm to you that the situation is still being studied. To the best of my knowledge, the amount announced is not the fine they are expected to pay. Federal Government is still studying it.”

“They decided to go to court and never wanted an amicable settlement. If they now want settlement, there has to be an official statement on that soon.”

MTN had reportedly on Wednesday, February 24 dropped its suit to stop the payment on the fine imposed on them by the NCC in court and proceeded to pay N50 billion as a show of good faith and readiness to pay up the balance.