MTN relief from Zuma’s Nigerian trip
by Agency Staff,
2016-03-09 05:45:39.0
ABUJA — MTN is in talks with the Nigerian telecoms industry regulator to reduce a $3.9bn fine imposed for failing to disconnect unregistered SIM cards from its local network.
Nigerian President Muhammadu Buhari made this comment on Tuesday at a joint news conference with President Jacob Zuma, who is on a state visit to the country.
MTN, Africa’s largest mobile networks operator, which makes 37% of its sales in Nigeria, its biggest market, said last month it had made a $250m "good faith" payment towards a settlement after dropping a legal case against the Nigerian Communications Commission (NCC).
"MTN had withdrawn their case from the court and decided to go back and renegotiate the fine, which they consider very stiff … to find ways the fine can be reduced and given time to pay gradually," Mr Buhari said.
He did not say when talks had begun and Mr Zuma did not comment on the matter.
MTN spokesman Chris Maroleng also declined to comment. The company has made a $600m provision towards the fine.
Nigeria imposed a deadline on mobile operators to disconnect unregistered SIM cards amid fears the lines are being used by criminal gangs and militant Islamist group Boko Haram. MTN missed the deadline.
The fine, originally set at $5.2bn on the basis of charging $1,000 for each unregistered card remaining connected, is the latest sign of tension between the countries.
A number of South African companies have said they will leave Nigeria, citing currency restrictions imposed by the central bank in its bid to defend the naira, as the country battles the economic crisis caused by the plunge in oil prices.
But Mr Zuma said Nigeria and SA were forging closer ties. "Our two countries have signed over 30 bilateral agreements and memoranda of understanding," he said, in areas including trade, industry, security and immigration.
"We have directed the relevant ministers to move with speed in implementing all signed agreements," said Mr Zuma, who travelled with about 30 business leaders and seven ministers.
Relations between the countries have also been strained by claims of South African xenophobia, with Nigerians alleging that Pretoria subjects them to harsh visa restrictions. Mr Zuma said he and Mr Buhari agreed to "work on relaxing visa issuance".
Reuters
Nigerian President Muhammadu Buhari (right) greets South African counterpart Jacob Zuma at the presidential villa in Abuja, Nigeria, on Tuesday. Picture: AFP PHOTO/PHILIP OJISUA
ABUJA — MTN is in talks with the Nigerian telecoms industry regulator to reduce a $3.9bn fine imposed for failing to disconnect unregistered SIM cards from its local network.
Nigerian President Muhammadu Buhari made this comment on Tuesday at a joint news conference with President Jacob Zuma, who is on a state visit to the country.
MTN, Africa’s largest mobile networks operator, which makes 37% of its sales in Nigeria, its biggest market, said last month it had made a $250m "good faith" payment towards a settlement after dropping a legal case against the Nigerian Communications Commission (NCC).
"MTN had withdrawn their case from the court and decided to go back and renegotiate the fine, which they consider very stiff … to find ways the fine can be reduced and given time to pay gradually," Mr Buhari said.
He did not say when talks had begun and Mr Zuma did not comment on the matter.
MTN spokesman Chris Maroleng also declined to comment. The company has made a $600m provision towards the fine.
Nigeria imposed a deadline on mobile operators to disconnect unregistered SIM cards amid fears the lines are being used by criminal gangs and militant Islamist group Boko Haram. MTN missed the deadline.
The fine, originally set at $5.2bn on the basis of charging $1,000 for each unregistered card remaining connected, is the latest sign of tension between the countries.
A number of South African companies have said they will leave Nigeria, citing currency restrictions imposed by the central bank in its bid to defend the naira, as the country battles the economic crisis caused by the plunge in oil prices.
But Mr Zuma said Nigeria and SA were forging closer ties. "Our two countries have signed over 30 bilateral agreements and memoranda of understanding," he said, in areas including trade, industry, security and immigration.
"We have directed the relevant ministers to move with speed in implementing all signed agreements," said Mr Zuma, who travelled with about 30 business leaders and seven ministers.
Relations between the countries have also been strained by claims of South African xenophobia, with Nigerians alleging that Pretoria subjects them to harsh visa restrictions. Mr Zuma said he and Mr Buhari agreed to "work on relaxing visa issuance".
Reuters
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