Nigeria’s biggest telecoms company, MTN, won’t be paying the N780bn fine imposed on it by the federal government until the courts decide on the matter, the company has warned.
The country’s regulator, Nigeria Communications Commission (NCC) had imposed a N1.4trillion fine on MTN after the company failed to deactivate 5.2 million unregistered SIMS on its network within a stipulated timeframe. The NCC had pegged the fine for each unregistered SIM at N200,000.
Several appeals from MTN and several negotiations after, the fine was reduced to N780bn by the NCC. The deadline for the payment is December 31. But with that date looming ever so close, MTN is now ready for a long drawn legal battle with Nigeria.
“MTN Nigeria acting on legal advice has resolved that the manner of the imposition of the fine and the quantum thereof is not in accordance with the NCC’s powers under the Nigerian Communications Act and therefore there are valid grounds upon which to challenge the fine”, the company said in a statement on Thursday.
The statement continued: “Accordingly, MTN has followed due process and has instructed its lawyers to proceed with an action in the Federal High Court in Lagos seeking the appropriate reliefs.
“MTN is advised that in the current circumstances in line with the lis pendens rule (pending legal action) the parties are enjoined to restrain from taking further action until the matter is finally determined. This is consistent with previous judicial decisions in Nigeria.
“Notwithstanding this action, the company will continue to engage with the Nigerian authorities to try and ensure an amicable resolution in the best interests of the company, its stakeholders and the Nigerian authorities.”
However, the NCC is wondering why MTN is now legally challenging the fine after it admitted to committing the crime and pleaded for leniency in a previous letter to the commission.
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