Confusion over reduction of MTN fine

Is it 25% or 35%?

There is confusion over the exact worth of the reduction to MTN’s initial N1.04 trillion fine by the Nigerian Communications Commission (NCC).

NCC had written to the telco to announce that its fine for late deactivation of unregistered lines had been cut by 35 percent to N674 billion.

However, MTN has now revealed that it is in possession of another letter from NCC announcing an entirely different percentage cut.

“On 3 December 2015, shareholders were informed that MTN had received a formal letter dated 2 December 2015 from the NCC (the First Letter) informing the Company that, after considering the Company’s request, it had taken the decision to reduce the fine imposed on the MTN Nigerian business from the original N1,040,000,000,000 (One Trillion, Forty Billion Naira) (the Original Fine) to 674 Billion Naira, which had to be paid by 31 December 2015,”  MTN said in a statement released by Chris Maroleng on behalf of its group corporate affairs.

“The fine relates to the late disconnecting of 5.1 million MTN Nigerian subscribers in August and September 2015. This was a reduction of 35% of the Original Fine.

“Late on 3 December 2015, the day after receipt of the First Letter, the Company received a further letter from the NCC dated 3 December 2015 (the Second Letter). The Second Letter, which was stated to supersede the First Letter, informed the Company that the fine had actually been reduced by 25% to 780 Billion Naira and not by 35% to 674 Billion Naira, as was stated in the First Letter. The payment date remained 31 December 2015.”

It noted that neither the first letter nor the second one set out any details on how the reduction was determined.

MTN, therefore, said it was “carefully considering both the first letter and the second letter, and the executive chairman, Phuthuma Nhleko, will immediately and urgently re-engage with the Nigerian Authorities before responding formally, as it is essential for the Company to follow due process to ensure the best outcome for the Company, its stakeholders and the Nigerian Authorities, and accordingly all factors having a bearing on the situation will be thoroughly and carefully considered before the Company arrives at a final decision”.

It advised shareholders to “continue to exercise caution when dealing in the Company’s securities until a further announcement is made”.