Buhari vs NCC: MTN’s $3.9bn saga drags on. Now seeks ‘amicable’ deal.
There seems to be a communication breakdown in Nigeria between the government and the regulatory body. Not a day after the public was told that President Buhari will have the final say on MTN's $3.9 billion fine, the Communications Commission said the telco is seeking an 'amicable' out of court settlement. It's a bit of a spaghetti patch at the moment and hopefully investors and the parties involved will find a single line of communication soon. – Stuart Lowman
By Alexis Akwagyiram
The comments raise the chance of an end to a standoff between Africa's largest cell operator and the continent's biggest economy which has been dragging on for three months.
Nigeria has been trying to halt the widespread use of unregistered SIM cards for fear that these are being used for criminal activity, including by the militant Islamist group Boko Haram.
The Nigerian Communications Commission (NCC) imposed a $5.2 billion fine on MTN in October for failing to disconnect users with unregistered SIM cards but after weeks of negotiations reduced it by 25 percent.
Read also: MTN Nigeria to report $955m annual profit. (24% of $3.9bn fine)
MTN, which makes about 37 percent of its revenue from Nigeria, then filed a suit there but the NCC was told late on Tuesday that the South African firm wanted an out-of-court deal, its executive vice chairman Umar Garba Danbatta said.
"Our lawyers communicated to us that indeed MTN is resorting to a settlement out of court," Danbatta told reporters. "They (MTN) are trying to get this settled amicably.
"We have been since then informed by our own counsel that the honourable judge has granted the request for a settlement on the matter," he said.
He gave no details but said NCC was willing to settle the matter amicably.
Read also: MTN's Nhleko wants fine cut by more than $1.8bn – lobbies Nigerian Regulator
"The intention is not to kill MTN. We would like the industry to continue. We would like it to be vibrant and I think this is a matter that needs to be resolved amicably and we are working towards that," he told Reuters.
Nigeria's telecoms minister Adebayo Shittu said on Tuesday that the final word on the fine rested with President Muhammadu Buhari.
A judge in Lagos, Nigeria's commercial capital, last week gave the company until March 18 to try to reach a settlement with the Nigerian authorities.
The fine equates to more than twice MTN's annual average capital spending over the past five years.