Court stops telecom giant from transferring funds abroad

folarin okunola

January 13, 2016 8:15 AM

Federal Government had brought a motion to stop the 21 commercial banks, in which MTN has funds, from releasing money to the telecoms giant.

An MTN starter kit pack on display on a table at a retail stand in a file photo. REUTERS/Afolabi Sotunde

According to various media reports, a Federal High Court in Lagos has barred MTN Nigeria from moving any funds it may have in Nigerian banks out of the country until the hearing of its suit challenging the N1.04 trillion fine imposed against it by the Nigerian Communications Commission (NCC).

Sahara Reporters report that the Federal Government had brought a motion to stop the 21 commercial banks, in which MTN has funds, from releasing money to the telecoms giant.

“The FG seeks an order of Mareva injunction [a court order which requests assets be frozen] restraining the aforementioned banks from releasing, making a sale, transferring, or paying any of the monies maintained by the plaintiff MTN,” read the motion, in part, according to Sahara Reporters.

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MTN Nigeria had been fined a whopping $5.2 billion by the NCC in October, 2015 for failing to disconnect about 5.1 million unregistered SIMs.

The fine had come as a result of MTN’s failure to adhere to regulations which the NCC had put in place to combat the increase in kidnappings and Boko Haram attacks, both of which often required mobile phones.

However, the fine was reduced to $3.9 billion in December, after which MTN Nigeria then proceeded to sue both the NCC and the Attorney General of the Federation, Abubakar Malami, arguing that as a regulatory body the NCC does not have the right to assume the functions of the state.

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