At Last, MTN To Pay FG $1.67 Billion
SOUTH MILWAUKEE WI. (GVE) – MTN Group on Friday disclosed that it has agreed to pay a reduced fine of N330 billion ($1.67 billion) in a settlement with the Nigeria Communication Commission (NCC).
The fine expected to be paid over six instalments in three years.
Incidentally the move raised the shares from 18 percent to 146 rand after the announcement from the South African telecommunication provider.
The communication regulatory commission at the onset demanded for a $5.2 billion sought by NCC last October for failing to deactivate more than five million unregistered SIM cards on its network.
According to reports, shares in MTN surged.
The rest will be paid in six instalments over three years, the company said in a statement.
The settlement also clears the way for MTN to list its local unit on the Nigerian Stock Exchange as soon as “commercially and legally possible,” it said.
“The relationship between MTN, the Federal Government of Nigeria and the Nigerian Communication Commission has been restored and strengthened,” MTN Executive Chairman, Phuthuma Nhleko, said.
MTN has been negotiating for months with Nigerian officials over the $5.2 billion fine, which was later reduced to $3.9 billion.