Eventually preferring an out-of-court settlement, MTN has paid the Federal Government of Nigeria, $250 million or N50 billion in the hope for an eventual resolution of the lingering crisis in which the mobile operator has been embroiled in with the Nigerian authorities as a result of the N1.04 trillion fine imposed on it by the Nigerian Communications Commission (NCC).
A statement issued by the MTN Group in Johannesburg, South Africa, on the matter stated:
“Pursuant to the ongoing engagement with the Nigerian Authorities, MTN Nigeria has today made an agreed without prejudice good faith payment of 50 Billion Naira (USD250 million) 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 statement went on to add:
“In an effort to achieve an amicable settlement, MTN has agreed to withdraw the matter from the Federal High Court in Lagos.”
It reminded shareholders thus:
“Shareholders were advised on 22 January 2016 that the above-mentioned matter came up for hearing before the Federal High Court in Lagos, Nigeria when the judge adjourned the matter to 18 March 2016 in order to enable the parties to try and settle the matter.”
The company stated further that “Phuthuma Nhleko in his capacity as Executive Chairman of MTN Group and a director of MTN Nigeria is continuing to lead the team engaging the Nigerian Authorities with a view to settling the matter.
“Shareholders are therefore advised to continue to exercise caution when dealing in the Company’s securities until a further announcement is made.”
And, in Lagos, MTN Nigeria issued a statement titled ‘MTN/NCC negotiating an amicable resolution, MTN withdraws court case.”
In the statement, issued through Funso Aina, a PR Manager at MTN Nigeria, the company stated:
“In renewed steps towards a negotiated settlement and to create a conducive atmosphere for further negotiations, MTN Nigeria today withdrew its case against the NCC at the Federal High Court of Lagos in response to a request by the authorities.
“MTN Nigeria CEO, Ferdi Moolman speaking on the issue said “This is a most encouraging development. It demonstrates a willingness and sincerity by both parties to work together towards a positive outcome”.
“Furthermore MTN Nigeria has paid N50 Billion to the Federal Government as a gesture of good faith and commitment to continued efforts towards an amicable resolution.
“The NCC had imposed a N1.04 Trillion fine on MTN Nigeria in October 2015, for its failure to disconnect 5.1 Million improperly registered lines within the prescribed deadline. Subsequently the fine was adjusted by 25% to N780 Billion, an amount that was considered inimical to the survival of the business. MTN Nigeria subsequently sought judicial determination as a means of protecting the local ecosystems valued and supported by MTN’s business.
The statement quoted the MTN Nigeria CEO, Mr. Ferdi Moolman as saying about the withdrawal of the court case and the N50 Billion payment:
“We are hopeful at this stage. Along with the authorities, it is clear that we are collectively committed to working towards a solution that is of mutual benefit to all parties. Our industry in Nigeria is an incredibly important example of the remarkable progress in ICT particularly as a much needed catalyst for socio economic growth and development at this time.’