Posted on: 06:35 Sat, 23 Jan 2016



MTN Nigeria has been given a two months
extension window to settle with the Nigerian
authorities over its $3.9 billion fine imposed on
it by the Nigerian Communication Commission
(NCC) in 2015.

This followed the adjournment of the case to 18
March 2016 by a Federal High Court in Lagos‚
on Friday over the $3.9 billion that MTN Nigeria
has been fined by that country’s regulator.
A statement by the telecom giant, said that the
two months extension was to enable the parties
to try and settle the matter out of court.

“If the parties are unable to reach a settlement
the matter will then proceed on that date‚” the
company said.

It therefore advised the company shareholders
to exercise caution when dealing in the
Company’s securities until a further
announcement is made.

MTN had gone to court to challenge the fine in
court‚ as it argued that the size of the fine and
the way it was imposed were not in accordance
with the commission’s powers under the
Nigerian Communications Act‚ Business Day
reports.

According to the company, the penalty is
substantially larger than it’s annual profits.
The Chief Executive Officer of MTN Nigeria, Mr.
Ferdi Moolman explained that the fine could
bankrupt the company as it represented 95 per
cent of its annual turnover.

Meanwhile, MTN Group limited share rose the
most in more than six years.

The share rose as much as 9.3 percent, the
biggest gain since May 2009, before paring
gains to 121.43 and at 1:27 p.m,Friday in
Johannesburg.

The fine, which was reduced from an earlier
$5.2 billion, was levied on MTN for failing to
meet a deadline to disconnect 5.1 million
unregistered subscribers, as security agencies
seek to fight crime and Islamist militants.

“If the parties are unable to reach a settlement
the matter will then proceed on that date,” MTN
said.