Saturday, 11 June 2016

NCC, MTN Finally Reach Truce - MTN to Pay N330 Billion Fine

South Africa’s president, Jacob Zuma, led by the Nigeria Attorney General of the Federation (AGF) as well as the Minister of Justice, Mr. A... thumbnail 1 summary
South Africa’s president, Jacob Zuma, led by the Nigeria Attorney General of the Federation (AGF) as well as the Minister of Justice, Mr. Abubakar Malami (SAN) in negotiation of the N1.04 trillion by the Nigerian Communications Commission (NCC) to MTN which resulted in a huge panic among the managing body of the Communication Company – MTN, that led to the resignation of the previous Chief Executive Officer of the Communication Company, 
NCC, MTN Finally Reach Truce - MTN to Pay N330 Billion Fine

Mr. Sifiso Dabengwa and two other persons who resigned few weeks later. Mr. Michael Ikpoki - Former Chief Executive Officer of MTN Nigeria as well as Mr. Akinwale Goodluck - Former Head, Regulatory and Corporate Affairs of MTN Nigeria.


Mr. Sifiso Dabengwa after his resignation was without wasting time replaced by an Acting Executive Chairman, the person of Phuthuma Nhleko
Bloomberg report reports that the Communication Company’s stock in South Africa has since the pronouncement of the fine in October 26 last year, gone down by 25% and has continued to.

NCC who claimed to have acted in order of the law by enforcing the said sum of N1.04 trillion on the Telecommunication Company, states that it suppressing that Telecommunication Company (MTN) could go as far as to breach the commissions law on SIM cards deactivation. They noted that MTN went as far as leaving more than 5,200,000 unregistered as well as improperly registered SIM’s on its network. While they are fully aware that per default SIM card attracts a fine of N200,000 each. This later led to the total fine of N1.04 trillion by NCC to the Telecommunication Company in October last year.


The fine, after numerous deliberations and negotiations was later reduced to N780 billion which is by 25%. But this amount still huge for Telecommunication Company, in December last year (2015), MTN charged NCC to court for imposing such huge amount on them.


But on the advice of the Nigeria Federal Government in February this year, the Telecommunication Company had to drop the charge so as to further aid the negotiation with NCC for a more peaceful resolution, which cost the Telecommunication Company (MTN) N50 billion to the federal government.

But almost 6 months of serious deliberation and negotiation on the issue, both the NCC and MTN have finally come to an agreement of N330 billion to be paid by MTN from the previous said amount of N780 billion. This also include the N50 billion paid by MTN to the Federal Government and they are left with a balance of N280 billion, to be paid in 6 tranches from now till 31st May, 2019.


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