Arab Today, arab today mtn to pay 17 n nigeria telecoms fine
Last Updated : GMT 22:49:52
Arab Today, arab today
Arab Today, arab today

MTN to pay $1.7 n Nigeria telecoms fine

Arab Today, arab today

Arab Today, arab today MTN to pay $1.7 n Nigeria telecoms fine

South Africa's MTN was hit with the huge fine amid fears
Johannesburg - AFP

South African telecoms giant MTN said Friday it would pay a $1.7 billion fine to the Nigerian government in a "full and final settlement" over its failure to disconnect unregistered mobile phone users.

The Johannesburg-based company said in a statement that "MTN Nigeria has agreed to pay a total cash amount of naira 330 billion over three years."

Africa's biggest mobile-phone operator was fined $3.9 billion last year and has since been in negotiations with the Nigerian government to reduce the size of the penalty.

The company was hit with the huge fine amid fears that some of the 5.1 million affected lines were being used by Boko Haram insurgents.

Nigerian Communications Commission (NCC), the west African country's telecoms regulator, confirmed that following six months of talks, the MTN fine had been reduced.

It said in a statement that its decision to reduce the fine was based on "professionalism and global best interest."

"We were careful not to take decisions that were likely to cripple the business interest of the operators we regulate," said the commission's executive vice chairman Umar Danbatta.

"Besides, the downturn of the global economy is biting hard on everybody and every sector, so we must therefore be sensitive and flexible in our decisions," he said in the statement.

After MTN's announcement, its shares on the Johannesburg Stock Exchange rose as much as 21 percent, on track for the biggest gain since 2008, according to Bloomberg News.

The country's telecoms regulator had handed down the fine last year citing an inability to trace users in a country plagued by frequent kidnappings and Boko Haram militants.

The sum was originally set at $5.2 billion before being to lowered to $3.9 billion on appeal.

- 'Relief to investors' -

"MTN is pleased to inform shareholders that the matter has been resolved with the Federal Government of Nigeria," the company statement said.

MTN executive chairman Phuthuma Nhleko "expresses his thanks and gratitude to (the Nigerian government) for the spirit in which the matter was resolved," it added.

MTN paid one instalment in February and has scheduled six other payments to cover the fine by May 2019.

"The news is a huge relief to investors, given the fact that Nigeria ended up not imposing the initial amount of the fine," Dobek Pater, telecoms specialist at the Africa Analysis consultancy, told AFP.

"MTN could not afford to lose a major market such as Nigeria and by paying the fine it shows that they still have faith in keeping their investment there."

As part of the deal has undertaken to "tender an apology" to the government and people of Nigeria over the matter, according to the NCC.

It also promised to "take immediate steps steps to ensure the listing of its shares on the Nigerian Stock Exchange as soon as commercially and legally possible," said the NCC.

The Boko Haram violence has left at least 17,000 dead and forced more than 2.6 million people from their homes since 2009.

The MTN fine dominated South Africa's President Jacob Zuma visit to Nigeria earlier this year.

Commenting on the MTN penalty, President Muhammadu Buhari had in March said his government was more concerned about national security than the fine.

"You know how the unregistered GSM (Global System for Mobile communication) are being used by terrorists.

"Unfortunately MTN was very slow and contributed to the casualties," said Buhari during Zuma's visit to Nigeria.

Relations between the continent's two economic powerhouses have been strained over recent years on issues including economic rivalry and political friction.

South Africa's growth has been undermined by the slowdown in China and falling commodity prices, while Nigeria, the continent's top oil producer, has suffered from low oil prices.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today mtn to pay 17 n nigeria telecoms fine Arab Today, arab today mtn to pay 17 n nigeria telecoms fine

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today 57 monkeys carrying 'invasive' genes

GMT 16:00 2017 Tuesday ,21 February

57 monkeys carrying 'invasive' genes
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Ahmed Fahmy stresses he did not ignore singing

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 14:51 2017 Monday ,20 February

Ways to acquire presentation skills

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday