By MKPE ABANG
The recent fine of N1.4 trillion ($5.2 billion) imposed on Nigeria’s leading mobile operator, MTN Nigeria, by the telecom regulator, the Nigerian Communications Commission (NCC), calls for caution, close examination and keener understanding.
As has become wont with our environment many phoney and pretentious ‘association’ and ‘groups’ have come out from a no existence at all, in their crazy quest for relevance and attention, to ‘support’ the fine against certain arguments which in their opinion, justify such a decision. They have neither looked at the larger implication of such a fine on the economy nor have they considered the finer reasons leading to the fine.
The NCC, in exercise of its functions, is fully empowered and has the right to impose any level of fine on any operator found to have run afoul of prevailing and extant laws. And, it must be added: the commission has been very up and doing in this regard.
In the case of the current fine imposed on MTN Nigeria, however, the underlining facts seem to go beyond just telecom infraction. Reports say MTN Nigeria, over a number of months, had around five million subscribers whose SIM cards were unregistered. This in itself is wrong, and cannot be encouraged. And, there is no way the operator would take it as a proper conduct.
Going further, it was further learnt that some officials of the regulator, in exercise of their functions had approached the operator at various points and times, to be allowed access into the operator’s switches for the purpose of closely examining those switches to determine the exact numbers of SIMs registered or unregistered.
Whereas the accusation has been that MTN Nigeria refused to allowed officials of the NCC access, the company has yet to come out with a plausible reason for such blockade, if indeed that was the case. Let us hope that when the facts are finally laid bare, it will be that MTN Nigeria did not act in such a manner; for, if they did, that would be an indefensible position.
Going further, however, is the unfortunate incidence of the kidnap of an elder statesman, Chief Olu Falae, by hoodlums, who, it was later found, used an unregistered MTN number while perpetrating their act, including the collection of a ransom to the tune of N5 million. But while that act is itself condemnable in all respects, we must look beyond the pedestrian level of the fact that the SIM used was unregistered.
Yes, it is true that not being registered made it difficult to trace who owned the number; but the call log provided by the operator already provided useful and valuable information which helped the agile security operatives in apprehending and arresting the criminals. We must not lose sight of this fact; in fact, but for the non-registration of the SIM, the operator should have been commended for helping the security agents in this regard. It should therefore not been seen that the operator is part of the crime; rather, the operator should be seen as part of the solution that led to the resolution of the crime.
Looking at the level of the fine, however, it is important to go back on history lane. MTN Nigeria, being part of a quoted company, is perhaps the only mobile operator in Nigeria whose revenue, expenditure and profits are published for public consumption; and this has been the case from inception.
Viewed from the pedestrian, for instance, there are many Nigerians – indeed among them, those who should know better – who make statements such as MTN Nigeria is making huge profits from Nigeria and taking it to its owners in South Africa. It pains the stomach when one hears such comments.
First, it is sad that Nigerians forget all too easily how this company suffered serious setback on its share value on the Johannesburg Stock Exchange all because it dared to venture and take a mobile licence in a country then considered the worst area with inestimable risks to invest in. The picture was that MTN had thrown away shareholders money by taking a licence in Nigeria. It was held that that money had been thrown down the drain. It is on record that at that time, Vodacom refused to venture into Nigeria for the licence for the same reasons.
It is therefore sad that such a company would today be vilified for having the big heart, for identifying with Nigeria and for taking the plunge into nowhere, when indeed there was nothing to hold onto.
It is sad that all too easily, Nigerians forget the huge contributions year in year out, that this company makes in taxes, swelling the country’s treasury as statutorily required – in fact MTN Nigeria has been recognised as a leader in tax compliance in the country.
It is indeed sad to hear people make comments that give the impression that one should set up a company to make losses. Little wonder that many Nigerian companies have folded up, throwing millions into the unemployment market. It is sad that people expect a company such as MTN Nigeria, which, ordinarily should be praised for making progress where there are so many challenges, that such a company should be punished for making profits. And, those who make the call forget how on an on-going basis, the company continues – and must continue – to make investments into the network running into hundreds of millions of dollars; most of these funds from offshore.
While no one will praise MTN Nigeria or any other company for flouting regulatory rules, such as failure to disconnect SIMs when directed to do so, it will amount to stupid and blind rage to accuse this company or any other, of doing the wrong thing by making a profit – if indeed profit is being made.
I will be happy to see proofs by anyone to show that MTN Nigeria has been making ‘huge profits’ and taking same out of Nigeria to South Africa without declaring same to the Nigerian authorities, such as the Federal Inland Revenue Service. That will actually mark the FIRS as an ineffective institution; it will mark it as an agency that has failed to act to its calling. But is that really the case? The FIRS should tell Nigerians if indeed MTN Nigeria has been making profits and taking outside Nigeria without paying what is due statutorily to the Nigerian government.
Globally, countries are gauged for being investment destinations and areas best to business in. This is meant to attract foreign direct investment. But where companies invest in a country and they are being vilified and nationals of that country are calling for such companies to be punished for making progress of their investment even in the face of daunting challenges created by the environment, which the government itself is incapable to fix, then such companies are being told in clear terms: you’re not welcome here. If they are not welcomed, surely no other companies will enter such a territory. This much Nigerians must realise.
Now to the fine itself. In every situation, an offence is evaluated against a fine that is to be paid for it. The NCC may be right in placing the huge fine it has placed on MTN Nigeria. However, given that the regulator itself is keen on seeing a vibrant, sustainable and value-driven ICT industry, it would be sane to use the stick and carrot approach: flog the irritant with the stick and pull it back with the carrot, because it needs to encourage the operator to grow and continue to serve the environment. That indeed is the basis of fuelling healthy competition.
To that end therefore, a fine that is nearly equal to the value of a business is tantamount to liquidating that business entity. And this is where I personally appeal to the wisdom of the NCC to soften its approach, MTN Nigeria having learnt its lesson, and reduce the fine to manageable limits such that the company can afford to pay and still keep the business running.
I think of the many Nigerians who work in MTN Nigeria; I think of the many businesses that depend on MTN Nigeria for survival and their staff – from the diesel suppliers to the generator companies; from the security companies to the transport companies, from the recharge card sellers to the subscribers, whose businesses will practically come to a halt if their lines were to go off.
I also say that with a sense of whole: realising that the death of MTN Nigeria will mean the apparent death of the mobile phone industry in Nigeria; not because it is the only operator, but because that will send wrong signals to the world, it will cause psychological shock even among the other operators, it will lead to a run on the industry much the same as when a bank collapses and depositors have to rush to remove their money from that bank: they will simply lose confidence even in the surviving banks.
Therefore, I call out to our respected NCC: temper justice with mercy. The amount of fine on MTN Nigeria is mind-boggling. As I understand, the company’s owners at the highest level are in talks with the NCC; it is my prayer that our regulator will give a good listening ear, so that this matter can be resolved amicably – for the good of the telecom industry in particular and the country in general.