MTN Pays N80 Billion of N330 Billion to FG

South Africa-based multinational mobile telecommunications company MTN has paid N80 billion of the N330 billion fine imposed on the network for failing to deactivate over five million unregistered SIM card, says the federal government.

The imposed fine was initially $5.2 billion (N1.04 trillion) but was later reduced to N330 billion. According to the minister of communications Adebayo Shittu, minister of communications at a forum organised by NAN in Abuja, he said the company paid the sum for the first year.

“For the first year, they paid N80 billion, after paying the initial N50 billion, and they will have to pay for three years until they will complete the N330 billion,” Shittu said.

“MTN does not have a choice, when the law was made, it said for every unregistered SIM card in use, the fine is N200,000, the law never anticipated that one company will be in violation to the tune of millions of lines.

“It was inconceivable, so when the thing was added 200,000 times 5.2 million lines, it came to a trillion plus.

“When it happened, MTN did four things; one they accepted that they were in default, two, they apologised for that and three they committed themselves never to allow such a thing to happen and number four, they asked for remission.

“Government had to look at a number of factors because if they have to pay this amount; they will pack up.

“We also knew that we invited the international community to come and invest and anything that will be done which will shake the confidence of international investors in Nigerian economy, we must avoid it.”

Mr Adebayo also added that the federal government decided to be considerate, explaining there would have been mass job loss if MTN had folded up.

“Consequently, we must not throw away the baby with the bath water, if they had packed up and left, let us assume all their staff are not more than 5, 000, it means all of those 5,000 will lose their jobs,” he said.

“Also those who made investment, who bought shares will lose their shares and the Nigeria banking sector would go into crisis.”

Shittu said even in the court system, if one was fined and could not pay for one reason or the other, the person would ask for reconsideration either by way of appeal or bringing a motion.

 

Source: Thecable

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