N1.04bn FINE: MTN Seeks N300bn Settlement Deal With FG

SENATE Committee on Communications has disclosed that the South African company, MTN Nigeria has proposed for the reduction of the N1.04 billion fine placed on the company by the Nigerian Communications Commission, NCC over its failure to comply with the directive to register all subscribers in its network on or before the stipulated deadline.

However, the committee faulted the court settlement arrangement between the Federal Government and the Mobile Telecommunication Network (MTN) which it said did not carry the Ministry of Communications Technology and the Nigeria Communications Commission (NCC) along in the settlement deal.

Chairman of the committee, Senator Gilbert Nnaji, noted that members of his committee are worried that a proposal initiated by the MTN for the reduction of the fine to N300 billion had already been acceptedby the Minister of Justice and Attorney General of the Federation, Abubakar Malami on behalf of the federal government without the consent of the Ministry of Justice and the NCC.

According to the report, an investigative hearing conducted on the controversial matter by the committee, however revealed that an account in the name of “recovery account” was opened for the N50 billion fine paid by the MTN as part of the settlement adding that an initial 25 per cent reduction of the initial N1.04 trillion fine to N780 billion was based on the directive of President Muhammadu Buhari.

Similarly, it presented a document indicating the proposal by MTN to pay N300 billion made up of N150 billion on installments as well as the N50 billion already paid as part of the settlement deal.

The terms of the settlement also show that the parties have agreed that the preliminary payment of N50 billion by MTN on February 24 2016 in order to commence settlement negotiations will form part of the whole sum of the settlement.

Categorically, it states that MTN Nigeria shall pay a total of N100 billion by electronic funds transfer to the Federal recovery account of the Central Bank of Nigeria commencing on December 31, 2016 and will be made by 31 December of each subsequent year.

It added that the proposal has a proviso that the MTN would buy N80 billion worth of Nigeria’s foreign bond and the terms were accepted by MTN Nigeria.