Commission (NCC) and will challenge the regulator's powers to impose a
$3.9 billion fine on its Nigerian subsidiary. The telecommunications
company will file a case against the regulator before a Federal High
Court in Lagos. As it disclosed this, the company also said it had
paid 75 billion CFA francs ($124 million) to extend its operating
license in Ivory Coast and would pay $67.5 million in Ghana to buy a
15-year radio frequency spectrum for high-speed networks.
NCC had slammed an initial $5.2 billion fine on MTN for failing to
meet a deadline to disconnect 5.1 million unregistered subscribers.
The fine was later cut by 25 percent to $3.9 billion and a deadline of
Dec. 31 was given for the payment. But believes "there are valid
grounds upon which to challenge the fine," and will, therefore, "seek
the appropriate reliefs from court".
While that is ongoing, MTN Chairman Phuthuma Nhleko is leading
negotiations with the NCC to try and ensure an amicable resolution.
MTN's $196 million total payment for operating licences in Ghana and
Ivory Coast shows the telco remains keen about West Africa despite the
troubles it faces in Nigeria, its largest market. The penalty the
company faces in Nigeria has made the company lose 28 percent of its
value. The reduced fine is over 30 percent of its 2014 group revenue
and 95 percent of MTN Nigeria's revenue in the same year. It will be
hard to pay such fine, amid slowing growth. But Nigeria remains a very
important market to MTN. The company paid $94.2 million to renew its
operating licence in the country till 2021.
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