MTN drops legal action against Nigerian regulator
by Agency Staff,
2016-02-24 15:47:19.0
MTN Group has withdrawn its legal action against Nigeria’s regulator over a $3.9bn fine and paid $250m towards a possible settlement, the company said in a statement on Wednesday.
Africa’s leading telecoms firm was fined by the Nigerian Communications Commission in October for failing to disconnect unregistered SIM users, prompting weeks of lobbying to reduce the fine.
The original amount was based on fining the company $1,000 for every unregistered SIM card in use.
"MTN Nigeria has today made an agreed without prejudice good faith payment of 50-billion naira ($251.3m) to the federal government of Nigeria on the basis that this will be applied towards a settlement, where one is eventually, hopefully arrived at," the company said.
MTN, which makes 37% of its sales in Nigeria, said it would withdraw its court challenge in an effort to reach an amicable settlement.
At about 2pm shares in the company rose about 2% to R130.37.
Reuters
A man enters a customer’s mobile cellphone sim card details on an MTN Group Ltd. registration machine at a roadside kiosk in Lagos in November last year. Picture: BLOOMBERG/GEORGE OSODI
MTN Group has withdrawn its legal action against Nigeria’s regulator over a $3.9bn fine and paid $250m towards a possible settlement, the company said in a statement on Wednesday.
Africa’s leading telecoms firm was fined by the Nigerian Communications Commission in October for failing to disconnect unregistered SIM users, prompting weeks of lobbying to reduce the fine.
The original amount was based on fining the company $1,000 for every unregistered SIM card in use.
"MTN Nigeria has today made an agreed without prejudice good faith payment of 50-billion naira ($251.3m) to the federal government of Nigeria on the basis that this will be applied towards a settlement, where one is eventually, hopefully arrived at," the company said.
MTN, which makes 37% of its sales in Nigeria, said it would withdraw its court challenge in an effort to reach an amicable settlement.
At about 2pm shares in the company rose about 2% to R130.37.
Reuters
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