NCC reduces MTN’s fine to N330bn, pays in 6 trenches

The Nigerian Communications Commission and MTN on Friday finally agreed after six months of negotiation and re-negotiation over the N1.04 trillion fine now reduced to N330 billion and would be pay in 6 trenches.

The agreement and resolutions were signed by Executive Vice Chairman (EVC) of NCC, Prof. Umar G. Danbatta, NCC Commission Secretary, Mr. Felix Adeoye, Chief Executive of MTN, Fredinand (Fredi) Moolman and MTN’s Company Secretary, Mrs. Uto Ukpanah, and witnessed by 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.

Tony Ojobo, Director, Public Affairs, NCC, in a statement said that the amount, N330 billion includes the “goodwill” payment of N50 billion earlier made by MTN to the government.

Ojobo also said that 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.”

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; and 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 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 5.1 million 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.”

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.

“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 that is biting hard on everybody and every sector, so we must therefore be sensitive and flexible in our decisions”

However, MTN Nigeria Chief Executive Officer, Ferdi Moolman has also issued a statement confirming this development.

“MTN will pay the NCC the sum of N330 billion in full and final settlement of the fine in line with an agreed payment plan,” MTN Nigeria Chief Executive Officer, Ferdi Moolman, said in a statement.

Moolman said that in addition to the monetary settlement, MTN Nigeria would commit to complying with the Code of Corporate Governance for the telecommunications industry.

He said the company would also take steps to ensure the listing of its shares on the Nigerian Stock Exchange (NSE) as soon as is commercially and legally possible as well as ensure full compliance of its license terms and conditions as issued by the NCC.

“MTN Nigeria once again offers its most sincere apologies for the series of unfortunate events that led to the imposition of the fine,” Moolman said.