Telecom company pays first instalment of record fine

folarin okunola

July 1, 2016 12:10 PM

MTN Nigeria CEO Ferdi Moolman said that the first N30 billion payment towards the settlement has already been disbursed to the Nigerian Communications Commission (NCC).

A worker walks past an outlet of South Africa's MTN Group in Johannesburg, South Africa, February 23, 2016. REUTERS/Siphiwe Sibeko/File Photo

Media reports say MTN has announced that it has already paid the first N30 billion instalment of its fine to the NCC, although it was due next week.

The telecom company said it has paid the first of six instalments to settle a $1.671 billion fine in Nigeria and has also won an auction for a 10-year spectrum licence in the country.

According to Nigeria CommunicationsWeek, MTN Nigeria CEO Ferdi Moolman said that the first N30 billion payment towards the settlement has already been disbursed to the Nigerian Communications Commission (NCC).

Earlier this month, South Africa-based MTN reached a settlement with the NCC and agreed to pay the government 330 billion naira ($1.671 billion) for the penalty.

ALSO READ: Former MTN executive Udoaka appointed as business development director

The original $5.2 billion fine was imposed on MTN last October for failing to meet a deadline to disconnect 5.1 million unregistered SIM cards in the country. The fine was later reduced by 25% to $3.9 billion.

"We are also delighted that the matter of the fine imposed by the NCC was amicably settled in the interest of all parties," said Moolman, MTN Nigeria CEO.

The N330 billion settlement amount which MTN agreed with the NCC includes a "good faith payment" made by MTN in February when it was still trying to settle the fine.

Per the settlement agreement, MTN is due to pay the outstanding N280 billion in six instalments over the next three years. The first instalment, which MTN Nigeria says it has already paid, was due for payment on 8 July.

MTN Nigeria is due to pay another N30 billion on 31 March 2017. Thereafter, four instalments of N50 billion each will be paid on 31 March 2018, 31 December 2018, 31 March 2019 and 31 May 2019.

folarin okunola