By MKPE ABANG
After what appeared like failed political moves to resolve the impasse over the N1.04 trillion ($5.2 billion) fine slammed on MTN Nigeria by the Nigerian Communications Commission (NCC), which was later reduced by 25 per cent, the mobile operator is taking the matter to the last hope for every law abiding citizen – corporate or individual – the judiciary.
Thus, as the deadline of December 31 draws near for MTN Nigeria to pay the now $680 million (or N694 billion), a Lagos High Court will be the next battle ground as Nigeria’s leading mobile phone operator seeks to save its neck and potentially the jobs of thousands who rely on it for survival, as the company heads to court for protection and possible quashing of the fine.
The dust raised by the fine, which has seen the resignation of the MTN’s Group CEO, Sifiso Dabengwa in the first instance, and followed by the CEO of MTN Nigeria, Michael Ikpoki as well as the Corporate Services Executive in charge of corporate and other sundry matters, Akinwale Goodluck, has hardly settled as the company continued to engage Nigerian authorities at the highest level for clemency over whatever mistakes that might have been made.
But it would seem those moves continued to meet deadlock, and, rather than face the too late, MTN has elected to go to court.
In a statement issued at the MTN headquarters in Johannesburg, South Africa, December 17, incidentally the 73rd birthday of Nigeria’s President, Muhammad Buhari, the company wrote:
“Further to the SENS (stock exchange news service) announcement issued by the Company on 4 December 2015, shareholders are advised that all factors having a bearing on the matter have been thoroughly and carefully considered including a review of the circumstances leading to the fine and the subsequent letters received from the Nigerian Communications Commission (NCC).
“MTN Nigeria acting on legal advice has resolved that the manner of the imposition of the fine and the quantum thereof is not in accordance with the NCC’s powers under the Nigerian Communications Act and therefore there are valid grounds upon which to challenge the fine.
“Accordingly MTN has followed due process and has instructed its lawyers to proceed with an action in the Federal High Court in Lagos seeking the appropriate reliefs.”
Writing further, the company stated:
“MTN is advised that in the current circumstances in line with the lis pendens rule (pending legal action) the parties are enjoined to restrain from taking further action until the matter is finally determined. This is consistent with previous judicial decisions in Nigeria.”
Essentially, this move is to ensure that NCC does not take any action even as the December 31 deadline it set for the company to pay the fine approaches.
However, MTN continued:
“Notwithstanding this action the Company will continue to engage with the Nigerian Authorities to try and ensure an amicable resolution in the best interests of the Company, its stakeholders and the Nigerian Authorities.”
MTN Nigeria was slammed the landmark fine of N1.4 trillion ($5.2 billion) by the Nigerian telecom regulator, NCC, for failing to disconnect some five million of its over 62 million subscribers whose SIMs were unregistered as provided by the regulator’s directives.
It was later learnt that the kidnap of a former Secretary to the Federal Government of Nigeria and Chairman of the Social Democratic Party (SDP), Chief Olu Falae, stoked the most anger within government circles leading to the unprecedented find handed down to MTN Nigeria by the NCC as security operatives found the hoodlums used an unregistered MTN Nigeria SIM in that dastardly operation.
Chief Falae, a former minister of finance in Gen. Ibrahim Babangida’s administration, was kidnapped on his 77th birthday, on September 21, 2015 at Ilado, along Igbatoro road, in Akure, the capital city of Ondo State, in a manner that threw the country into shock in the rising spade of cases of kidnaps, insurgencies and the likes, thereby making nonsense of the well-meant efforts by government to keep the insurgents and criminals at bay. It was a national embarrassment that caused vexation in the bellies of security agencies and President Muhammadu Buhari, who has vowed to wipe out insecurity and insurgency in the country.
Talks have however been ongoing at the highest level to resolve the matter of the fine, which by all indications is beyond the company’s capacity to pay and still remain in business,
For instance, only last week, the NCC renewed the mobile licence held by the MTN Group for another period of five years, ending on August 31, 2021 for its operations in Nigeria operating as MTN Nigeria through which it offers GSM services among a bouquet of telecom offerings.
For the renewal, MTN Group will pay N18,845,030,550 (Eighteen billion, eight hundred and forty-five million, thirty thousand five hundred and fifty Naira) ($94,225,152.75) by latest December 31, this year. The licence issued in 2001 went for $285 million.
In throwing in the towel, Dabengwa, who stepped in as CEO of MTN Nigeria after Adrian Wood’s tenure came to an end and worked here for a considerable period of time, wrote:
“Due to the most unfortunate prevailing circumstances occurring at MTN Nigeria, I, in the interest of the company and its shareholders, have tendered my resignation with immediate effect.”
The statement which was issued from the MTN Group headquarters in South Africa at 6 a.m. November 9, 2015, also informed that the current Non-Executive Chairman, of the Group, Mr. Phuthuma Nhleko has been appointed Executive Chairman in a temporary capacity.
Nhleko will act in that capacity for a maximum period of 6 months while the company identifies a successor for Mr. Dabengwa, the company explained in the statement.
On December 3, the company announced the resignation of both Ikpoki and Goodluck, from MTN Nigeria, thus throwing more confusion into the crisis. It was hoped that with their resignation coupled with the earlier resignation of the Group CEO, Dabengwa, there would be a resolution of the crisis; but that was not to be.
With the Group’s decision to go to court and challenge NCC’s powers however, the stage may have been set for yet another landmark case, depending on which the pendulum swings.