FG sets conditions for telecom giants' out-of-court settlement plea

folarin okunola

February 9, 2016 11:47 AM

Mr. Adebayo Shittu, minister of Communication, during a parley with ICT journalists in Lagos‎, said that the federal government cannot return to renegotiation table with the telecom giant

Minister of Communication, Adebayo Shittu

According to various media reports, the Federal Government has set conditions including a “show of good faith” payment by MTN Nigeria before she (the FG) can consider the telecom giant’s proposal for an out of court settlement in the e N780 billion fine saga going on between the telecom company and the Nigerian Communications Commission (NCC).

Mr. Adebayo Shittu, minister of Communication, during a parley with ICT journalists in Lagos‎, said that the federal government cannot return to renegotiation table with the telecom giant until a substantial fraction of the fine has been paid to indicate its readiness to settle the issue.

South Africa-based MTN had taken the NCC to court after the commission imposed a N1.04 trillion fine on it for failing to deactivate millions of unregistered subscribers.

The NCC later reduced the fine to N780 billion.

READ: Etisalat drags telecom giant to court over Visafone acquisition

Shittu said: “When MTN came, we understood their pleas. However, we added that if you cannot meet up with the fine, you have to add your account details to show that upon paying, your company will collapse. They are yet to respond on that. The next thing was for me to get a call they are going to court. And now, they are coming back for out of court settlement. We don't want MTN to die; rather, we want them to obey the law."

MTN sought for an adjournment to enable it pursue an out of court settlement with the federal government at the last court hearing, an offer which the minister had dismissed publicly before making a U-turn on the matter on Monday.

The Minister further explained, saying, "See we don't want MTN to die; 99% of the staff are Nigerians. But when you default in the law, you have to bear the consequences; we want them to obey the law."

Following a request put in by MTN Nigeria, in the court case it instigated, a court of jurisdiction in Lagos gave MTN till March 18, 2016 to settle out of court with NCC/Federal Government.

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