After
nearly six months of negotiation and re-negotiation over the N1.04Trillion fine
imposed on MTN, Nigeria by the Nigerian Communications Commission (NCC) the
fine was yesterday reduced to N330Billion.
This
amount includes the “goodwill” payment of N50Billion earlier made by MTN to the
government.
The
balance of N280Billion will be made in six tranches in the following order. By
the terms of agreement, MTN will pay N30Billion into NCC’s Treasury Single Account
(TSA) with the Central Bank of Nigeria (CBN) 30 days from the date of the
agreement dated June 10, 2016.
Other
dates of payments include:
March
31, 2017 - N30Billion;
March
31, 2018 - N55Billion;
December
31, 2018 - N55Billion;
March
31, 2019 - N55Billion and the balance will be in
May
31, 2019 - N55Billion
The
agreement and resolutions were signed by Executive Vice Chairman (EVC) of NCC,
Prof. Umar G. Danbatta, NCC Commission Secretary, Mr. Felix Adeoye, Chief
Executive of MTN, Fredinand (Fredi) Moolman and MTN’s Company Secretary, Mrs.
Uto Ukpanah, and witnessed by Mr. Tony Ojobo, NCC, Director, Public Affairs;
Mr. Usman Malah, Chief of Staff to the EVC, NCC; Ms Helen Obi, Assistant
Director, Legal, NCC and Ms. Amina Oyagbola, Corporate Executive, MTN.
It
was also agreed that MTN shall undertake the followings:
Tender
an apology in line with the apology previously tendered in correspondences
relating to this matter to the Government of Nigeria and Nigerians within the
one month of the execution of this 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; and
Undertake
to take 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 this Settlement Agreement.
Both
parties agreed that these terms of settlement cannot be altered, varied,
annulled or modified in any respect, except by writing duly executed by both
parties; and the terms of settlement constitute all the terms and conditions of
the settlement and supersede and replace any previous offers, representations and
terms.
It
will be recalled that the NCC on October 20, 2015, imposed a fine of
N1.04Trillion on MTN for infraction of the provisions of the Nigerian
Communication Commission (Registration of the telephone subscribers)
Regulations, 2011; for failure to disconnect 5.1million improperly registered
lines within the prescribed deadline.
In
arriving at the agreement, the EVC said our decision was taken based on
professionalism and global best practices, and in line with the NCC core value
“to be fair, firm and forthright”
According
to the EVC, the Commission has always carried industry and stakeholders along
in taking transparent regulatory actions, adding that at no point will the
regulator do anything to jeopardise the business health of the entire sector.
“We
were careful not to take decisions that were likely to cripple the business
interest of the operators we regulate. Besides, the downturn of the
global economy is biting hard on everybody and every sector, so we must
therefore be sensitive and flexible in our decisions”
This
perhaps is one of the attractions of the global communities to the activities
of the Commission through multiple awards recently.
A
week ago, the NCC got the European Award for Best Practices by the European
Society for Quality Research (ESQR) based in Switzerland. The award
ceremony involved over 63 Countries and global business giants like United
Air-lines, Cathay Pacific airlines amongst others took place in Brussels,
Belgium.
Only
two weeks ago, the NCC was named Africa Regulator of the year in Accra, Ghana.
“Africa
and global communication investors are excited about the Nigerian
telecommunication environment and have made Nigeria investors first choice”,
Danbatta explained.
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