MTN Group challenge in court a $3.9bn fine by the Nigerian Communications Commission (NCC) after resolving that the penalty that has wiped 28% off the company’s value was not within the powers of the regulator to impose.
A statement by the company, Thursday, assured that it will also continue to engage with the Nigerian authorities to try and ensure an amicable resolution.
It also advised in the statement that pending the court hearing, ‘neither party should take further action until the matter is resolved.’
“There are valid grounds upon which to challenge the fine,” MTN said.
“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.”
It would be recalled that NCC imposed the penalty on MTN for failing to meet a deadline to disconnect 5.1 million unregistered subscribers as security agencies seek to fight crime in a country with poor identity records.
Chairperson Phuthuma Nhleko is leading negotiations with the NCC after Chief Executive Officer Sifiso Dabengwa resigned.
The initial fine of $5.2bn was reduced by 25% to $3.9bn earlier this month, with a payment deadline set for December 31.
NCC spokesperson Tony Ojobo declined to comment on MTN’s plan to challenge the fine.
