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N330bn SIM infraction fine: MTN Nigeria pays N55bn balance to FG


N330bn SIM infraction fine: MTN Nigeria pays N55bn balance to FG

MTN Nigeria on NSE

MTN Nigeria Plc has paid the N55bn balance of the N330bn SIM infraction fine imposed on the telecom company by the Federal Government.

Sources from the Nigeria Communications Commission (NCC) disclosed this on Friday, noting that the company had met the May 31, 2019 deadline given by the regulatory body.

MTN had in 2015 incurred a fine of N1.04tn after it missed a deadline to disconnect 5.1 million unregistered lines amid a security threat in the country.

Sequel to negotiations, the fine was reduced to N780bn in December 2015, and it was further reduced in June 2016 to N330bn, with its payment spread over three years. The 55bn would be the sixth tranch of the payment.

The negotiated terms included the listing of MTN on the Nigerian Stock Exchange, which was achieved as the company listed 20.35 billion shares at N90 per share on the NSE on May 16.

“Specifically,   MTN began the payment structure with the payment of N30bn into NCC’s Treasury Single Account with the Central Bank of Nigeria 30 days from the date of the agreement dated June 10, 2016,” NCC had said.

“In the agreement reached by the parties involved, in a way to avoid a decision that is likely to cripple business interest of the operators the commission regulates, it was also agreed that MTN shall apologise to Nigerians, subscribe to the compulsory observance of Code of Corporate Governance for the telecom industry; as well as undertake immediate steps to ensure its listing on the NSE.”

Speaking on the state of MTN fine payment at the valedictory service organised for the Minister of Communications, Adebayo Shittu, the Executive Vice Chairman of NCC, Prof. Umar Danbatta, said the Commission had succeeded in empowering Nigerians “to control, manage and own telecommunications companies in Nigeria by owning shares in MTN Nigeria.”


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