African largest telecommunications giant MTN, is seeking to further pursue a reduction in the N680 Billion fine imposed by the Nigerian Communications Commission (NCC), despite 35 percent recent reduction in fine amount with a more conducive payment terms.
MTN's parent company announced yesterday in Johannesburg, South Africa, that it had secured a reduction of the fine imposed on it by NCC from N1.04 trillion to N680 billion ($3.4 billion), with NCC giving MTN a deadline of December 31 to pay up the revised amount.
NCC imposed the fine on MTN in October for failure to meet its deadline for the disconnection of 5.2 million unregistered subscribers. Under the regulator's rules, a N200,000 surcharge was fined per unregistered subscriber.
However, an official of the company recently stated that, "Even with the reduction to $3.4 billion, no company has that kind of money lying around to pay in one fell swoop and in such a short time frame.
"We are certainly going to appeal the new fine and hope that NCC will accept out plea." A source also told Reuters that MTN was likely going to open up new negotiations on the issue. "The fine is still big enough to cripple MTN's ability to invest in its network and that's what further talks with the NCC are about."
The executive chairman of MTN Group, Phutuma Nhkelo, released a recent statement to shareholders in Johannesburg, saying that he would immediately and urgently re-engage with the Nigerian authorities before making any formal response.
He stated: "Furthermore, as it is essential for the company to follow due process to ensure the best outcome for the company, its stakeholders and the Nigerian authorities and accordingly all factors having a bearing on the situation will be thoroughly and carefully considered before the company arrives at a final decision."
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