/ 30 March 2016

MTN’s fine must be doubled to $10-billion: Nigerian lawmaker

Mtn's Fine Must Be Doubled To Billion: Nigerian Lawmaker

MTN Group should pay double the $5.2-billion it was originally fined by Nigeria’s telecommunications regulator last year, according to the spokesperson for the West African country’s House of Representatives.

Africa’s biggest wireless operator must pay 400 000 naira ($2 015) for each of the 5.2-million unregistered phone lines it failed to deactivate before a deadline, instead of 200 000 naira, lawmaker Abdulrazak Namdas said in a phone interview from Abuja, Nigeria’s capital. 

He also said the lower chamber will “investigate” why Johannesburg-based MTN has been dealing with Nigeria’s attourney general instead of the Nigerian Communications Commission in trying to get the fine reduced.

Fine largest in Nigeria’s history
The original sum was already the largest ever corporate fine ruled on in the history of Nigeria. It totalled significantly more than the revenue earned by MTN in the country during 2014. 

While the penalty was cut to $3.9-billion earlier this year, MTN proposed this month to pay $1.5-billion in cash and installments to settle it. MTN’s proposal includes $252-million dollars that was paid in February in order to continue negotiations.

MTN spokesperson Chris Maroleng said the company wouldn’t comment on the Nigerian lawmakers’ call.

“We note ongoing media report coming from Nigeria,” Maroleng said. “But we cannot be drawn into commenting on the matter as we are awaiting clarity and an official position from the Nigerian government on the matter.”

He added MTN would guide the market accordingly “when there is more clarity on the matter”.

Shares in MTN, which have declined 38% during the last 12 months, rose 0.9% to close at R128.64 in Johannesburg yesterday. – Bloomberg, edited by Thalia Holmes