A final agreement has been reached between MTN Nigeria and the Federal Government with respect to violations of the Nigerian Communication Commission regulations. On October 20th, 2015, the NCC imposed a fine of ₦1.04 trillion on MTN Nigeria, as a result of this violation, which in essence was a failure on the part of MTN to deactivate 5.1 million unregistered SIM cards by the set deadline of August 11th, 2015.
With negotiations and re-negotiations over the fine, a conclusion has finally been reached. Based on the agreement, the fine has been reduced to ₦330 billion and will be paid in 6 instalments. The first two instalments will be ₦30 billion each while the final 4 will be ₦55 billion each. It will be recalled that MTN had earlier made a goodwill payment of ₦50 billion, this would also be subtracted from the agreed amount.
Also as part of the resolution, MTN will be doing the following:
- Tender an apology in line with the apology previously tendered in correspondences relating to this matter to the Government of Nigeria and Nigerians within one month of the execution of the agreement.
- Subscribe to the voluntary observance of the Code of Corporate Governance for the Telecoms Industry and would ensure compulsory compliance when the said Code is made mandatory for the telecommunications industry.
- Undertake immediate steps to ensure the listing of its shares on the Nigerian Stock Exchange as soon as commercially and legally possible after the date of execution of the Settlement Agreement.
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