Telecoms giant MTN pays the first instalment of $5.2bn fine imposed on it by Nigeria

TELECOMMUNICATIONS giant MTN has paid the first N50bn ($250m) tranche of the N1.04bn ($5.2bn) fine imposed on it by the Nigerian Communications Commission (NCC) for non-compliance with a deadline to disconnect all non-registered Sim cards.

 

In October last year, the NCC imposed the fine on MTN after it refused to obey a directive and it was discovered that unregistered Sim cards were being used by Boko Haram terrorists. Since then the company and the government have been involved in a bitter spat over the matter, with MTN securing the services of former US attorney-general Eric Holder, to represent it.

 

There had been fears that MTN would relocate its operations outside Nigeria due to the fine and to prevent this, the government sought to get its accounts frozen. However, in a sign that a compromise deal is being reached, MTN paid the first instalment of the fine yesterday as part of an out-of-court settlement.

 

Communications minister Adebayo Shittu's spokesman Victor Oluwadamilare, said the development was in line with the promise by MTN to amicably resolve the issue with NCC. It is not yet clear when the next instalment will be paid.