MTN drags Nigeria to court over N1.04trn fine
It’s the latest twist to the battle between the Nigerian Communications Commission (NCC) and African telecoms giant MTN Group.
You’ll recall new MTN CEO Phuthuma Nhleko vowed “to deal with” the regulatory body.
Apparently that would not involve negotiations alone; a lawsuit is in progress.
The NCC fined MTN N1.04 trillion for refusing to block unduly registered phone lines. The fine was later reduced to N780 billion.
Not only has MTN told its Nigerian subsidiary not to pay the fine. The company now says it is dragging the telecoms regulators to court.
Here’s the response of NCC’s Public Affairs Director, Tony Ojobo, to the latest twist:
When we get it, the NCC will react appropriately. The commission is ready for them. When we get the summons, we shall meet them in court.
And here the statement MTN’s Group Public Affairs Manager, South Africa, Chris Maroleng, issued on Thursday.
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.
All factors having a bearing on the matter were thoroughly and carefully considered, including a review of the circumstances leading to the fine and the subsequent letters received from the Nigerian Communications Commission.
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.
Shareholders are, therefore, advised to continue to exercise caution when dealing in the company’s securities until a further announcement is made.
MTN said the lawsuit will not stop it from continuing to negotiate with the NCC on the best possible way to resolve the wahala.
MTN has some 233 million subscribers in 22 countries in Africa, Asia and the Middle East. Its nearly 63 million subscribers in Nigeria make it is the largest telecoms operator in the country.
The NCC fine sent shudders down the spine of stock traders as MTN shares slumped more than 20 per cent on the Johannesburg Stock exchange.
The dip was so deep it wiped out nearly $4.2 billion off MTN’s market value, reports say. South Africa authorities had to suspend MTN stocks, and probe a “possible insider trading.”
Authorities feared MTN top shots who probably had prior knowledge of the fine may have “illegally” traded in company stocks for private gain before the news became public, reports say..
