$3.9bn fine: MTN pays $250m to Nigeria, withdraws suit

Feb 24 2016 - 2:54pm
Nhleko MTN CEO: company moves to settle Nigerian fine headache

Nhleko MTN CEO: company moves to settle Nigerian fine headache

MTN moved to settle the $3.9 billion fine imposed by Nigerian regulator, the Nigerian Communications Commission, by paying $250million and also withdrawing a legal challenge of the fine.

The company disclosed the move in a statement on Wednesday.

Africa’s leading telecoms firm was fined by the NCC in October for failing to disconnect unregistered SIM users, prompting weeks of lobbying to reduce the fine.

The original amount was based on fining the company $1,000 for every unregistered SIM card in use.

“MTN Nigeria has today made an agreed without prejudice good faith payment of 50 Billion Naira ($251.3 million) to the Federal Government of Nigeria on the basis that this will be applied towards a settlement, where one is eventually, hopefully arrived at, the company said.

MTN, which makes 37 percent of its sales in Nigeria, said it would withdraw its court challenge in an effort to reach an amicable settlement.

Shares in the company rose about 2 percent ay 1158 GMT to 130.37

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