Minister of Communications, Adebayo Shittu had told telecommunications operator, MTN to drop its legal action over a $3.9 billion fine imposed by the Nigerian Communications Commission (NCC) in order to facilitate talks on a possible settlement.
It would be recalled that the NCC slapped a $5.2 billion fine on MTN in October last year, for failing to disconnect users with unregistered SIM cards but after weeks of negotiations reduced it by 25 percent.
MTN, which makes about 37 percent of its revenue from Nigeria, then filed a suit at a Lagos High Court questioning NCC’s legal grounds for imposing the penalty.
“I’m not aware of any out-of-the-court settlement,” telecoms minister Shittu told reporters.
Shittu said President Muhammadu Buhari will have the final decision on the matter, adding that MTN might be advised to withdraw the court case filed against the fine.
“If they withdraw it creates a better environment, an environment where there is no stress or pressure on either side,” he said.
A judge in Lagos, Nigeria’s commercial capital, last week gave the company until March 18 to try to reach a settlement with the Nigerian authorities over the fine. The prospect of a lower fine boosted MTN shares.
The fine equates to more than twice MTN’s annual average capital spending over the past five years.
