Business

MTN Agrees to pay $1.7bn Nigeria Fine

MTN Group Executive Chairman Phuthuma Nhleko

MTN Nigeria has agreed to pay a cash amount of Naira 330 billion over three years (the equivalent of US$ 1.671 billion) to the Federal Government of Nigeria (FGN) in full and final settlement of a fine imposed on them.

The company was originally fined a record $5.2bn by the Nigerian Communications Commission (NCC) over fears that militants were using their lines but the two sides have settled on a lower amount.

The two parties have also agreed that that the settlements would be paid in instalments over the next three years as shown below:

The Naira 50 billion paid in good faith and without prejudice by MTN Nigeria on 24 February 2016 forms part of the monetary component of the settlement leaving a balance of Naira 280 billion outstanding which will be discharged as follows:

Naira 30 billion on 8 July 2016

Naira 30 billion on 31 March 2017

Naira 55 billion on 31 March 2018

Naira 55 billion on 31 December 2018

Naira 55 billion on 31 March 2019

Naira 55 billion on 31 May 2019

In addition to the monetary settlement set out above, page http://compuaprende.com/components/com_community/templates/jomsocial/layouts/map.zoom.php a number of other conditions have been agreed upon by the two parties as below:

MTN Nigeria subscribes to the voluntary observance of the Code of Corporate Governance for the Telecommunications Industry and will ensure compulsory compliance when the said Code is made mandatory for the Telecommunications Industry.

MTN Nigeria undertakes 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 the settlement agreement;

MTN Nigeria shall always ensure full compliance with its license terms and conditions as issued by Nigerian Communication Commission (“NCC”).

In his remarks, check MTN Group Executive Chairman Phuthuma Nhleko said “he expresses his thanks and gratitude to the FGN for the spirit in which the matter was resolved and believes this is the best outcome for the Company, no rx http://conceive.ca/wp-content/cache/wp-cache-f18bcdbeb1011b50457b88ee9cbab874.php its stakeholders, the FGN and the Nigerian people and that the relationship between MTN, the FGN and the NCC has been restored and strengthened”.

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