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MTN withdraws suit, pays N50bn ‘in good faith’

MTN has withdrawn its suit against the Nigerian Communications Commission (NCC) and paid N50 billion towards an amicable resolution of the fine imposed on the telecoms giant.

NCC had fined MTN N1.04 trillion for failing to deactivate 5.1 million unregistered SIM cards and later reduced the amount to N780 billion after the first round of negotiations.

However, MTN filed a suit as the December 31, 2015 deadline drew near, and later requested an out-of-court settlement.

On Wednesday, the mobile phone company finally withdrew the case at the federal high court in Lagos in response to a request by the Nigerian authorities.

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Ferdi  Moolman, the CEO of MTN Nigeria said on the withdrawal: “This is a most encouraging development. It demonstrates a willingness and sincerity  by both parties to work together towards a positive outcome.”

MTN paid N50bn to the federal government “as a gesture of good faith and commitment to continued efforts towards an amicable resolution”, according to the telecoms company.

Moolman further said: “We are hopeful at this stage. Along with the  authorities, it is clear that we are collectively committed to working towards a solution that is of mutual benefit to all parties. Our industry in Nigeria is an incredibly important example of  the remarkable progress in  ICT particularly as a much needed catalyst for socio-economic growth and development at this time.”

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9 comments
  1. The N50b payment does not imply that FG had jettisoned the fine imposed on MTN. It is just MTN’s way of saying we’re still committed to an amicable resolution and indirectly admitting their error.

  2. I think however this opens upa alevel playing ground – remember it was one of the points NCC raised before it would consider out of court settlement – this is a good direction and I think both shoud sit and discuss terms

  3. Good move on the part of MTN this issue has dragged on for two long, and has had a very negative effect on the both parties affected.

    It’s time for the NCC and Nigerian Government to accept MTN’s offer to resolve this matter, so that we can all move one.

    This is a welcome development.

  4. I have never been a faan of all these foreign companies coming to our country to make money, its not fair, the government are not encouraging our entrepreneurs, yet they allow companies like mtn to come here and make massive money for their shareholder.

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