MTN refuses to pay N1.04 trn fine, threatens court action

MTN Nigeria has finally concluded it would not pay the N1.04 trn fine, the Nigerian Communications Commission, NCC imposed on it, for its failure to disengage about 5.1 million improperly registered subscribers on its network in August and September 2015 and has decided to challenge the NCC in court. Not even the reduction of the fine to N780 billion last week by the commission, could sway the telecommunications company.

Addressing its shareholders, yesterday, MTN said that “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 Nigerian Communications Commission (NCC).
“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. Accordingly MTN has followed due process and has instructed its lawyers to proceed with an action in the Federal High Court in Lagos seeking the appropriate reliefs.
Appropriate reliefs
MTN is advised that in the current circumstances in line with the lis pendens rule (pending legal action) the parties are enjoined to restrain from taking further action until the matter is finally determined. This is consistent with previous judicial decisions in Nigeria”.
The telecommunications company said that notwithstanding this action, the company will continue to engage with the Nigerian authorities to try and ensure an amicable resolution in the best interests of the company, its stakeholders and the Nigerian authorities. The Nigerian Communications Commission, NCC, last week reduced the N1.04 trillion fine it imposed on MTN Nigeria to N780 billion. However, the commission also mandated the telecom operator to pay the fine on or before December 31, 2015.
Meanwhile, the MTN’s latest decision has attracted several reactions from stakeholders in the industry. While some agreed that MTN reserved the right to seek court interpretation to the issue, others warned of the consequences taking the matter to court might bring to both the company, the sector and the country at large particularly with the level of impact the sector has on foreign direct investment and the country’s GDP.