MTN TO CHALLENGE NIGERIA FINE IN COURT
South African telecoms giant MTN announced late Thursday that it intends to mount a legal challenge to the $3.4 billion fine imposed by Nigeria’s telecommunications regulator.
The fine was initially fixed at $5.2 billion when it was first announced on Oct. 26, but MTN has been able to negotiate that down to $3.4 billion as of Dec. 3.
However, negotiations to reduce the fine further have failed to yield any result.
“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 NCC,” the company said in a statement issued to its shareholders.
The firm said it had instructed its lawyers to proceed with “legal action in the federal high court in Lagos to seek the appropriate relief”.
The statement added: “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.”
All parties in the case would be obliged to stay action until the court has ruled on the matter, the MTN statement noted. This could delay MTN’s obligation to pay the fine beyond the Dec. 31 deadline.
“This is consistent with previous judicial decisions in Nigeria,” according to the statement.
Nigeria’s communication minister recently said the MTN case is being reviewed, along with its plea for leniency, but added that the final decision rests with President Muhammadu Buhari.
MTN was fined after it missed a deadline to disconnect its customers who had not properly registered their SIM cards.
MTN, with 56 million subscribers, is the country’s largest mobile telephone network provider — its largest market in Africa. MTN has operations in 21 countries across Africa and the Middle East.
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