After almost eight months of long negotiation, South African telecoms giant MTN has finally agrees to pay the sum of N330 billion ($1.7 billion) to the federal government over a space of three years.
The telecom company confirmed this in a statement issued on Friday, stating that it will comply with the directives of the Nigerian Communications Commission (NCC) and pay the fine slashed on it by the commission.
“The balance of N280 billion will be made in six tranches in the following order. By the terms of agreement, MTN will pay N30 billion into NCC’s Treasury Single Account (TSA) with the Central Bank of Nigeria (CBN) 30 days from the date of the agreement dated June 10, 2016.
“Other dates of payments include: March 31, 2017: N30 billion, March 31, 2018: N55 billion, December 31, 2018: N55 billion, March 31, 2019.”
The statement further stated that the company will tender another apology, subscribe to the voluntary observance of the Code of Corporate Governance for the Telecoms Industry and undertake to take immediate steps to ensure the listing of its shares on the Nigerian Stock Exchange.
“Tender an apology in line with the apology previously tendered in correspondences relating to this matter to the Government of Nigeria and Nigerians within the one month of the execution of this Agreement.
“Subscribe to the voluntary observance of the Code of Corporate Governance for the Telecoms Industry and would ensure compulsory compliance when the said Code is made mandatory for the telecommunications industry.
“Undertake to take immediate steps to ensure the listing of its shares on the Nigerian Stock Exchange as soon as commercially and legally possible after the date of execution of this Settlement Agreement.”
The company was fined $3.9 billion last year by NCC for failure to disconnect lines of unregistered subscribers as some of the 5.1 million affected lines were believed to be used by Boko Haram insurgents.