Telecom giant pays $250 million settlement, withdraws court case against NCC

folarin okunola

February 24, 2016 4:36 PM

MTN Nigeria was fined by the NCC back in October last year for failing to disconnect unregistered SIM users

An MTN starter kit pack on display on a table at a retail stand in Abuja, Nigeria November 17, 2015. REUTERS/Afolabi Sotunde

New media reports just surfacing are reporting that South Africa-based telecom giant, MTN Nigeria, has withdrawn its suit filed against the Nigerian Communications Commission (NCC) over a $3.9 billion fine imposed on it.

According to a statement from MTN Nigeria, the company has paid the sum of $250 million, geared towards a possible settlement, Nigeria CommunicationsWeek reports.

MTN Nigeria was fined by the NCC back in October last year for failing to disconnect unregistered SIM users, which led to weeks of lobbying and even legal action against the regulator in an attempt to reduce or quash the fine.

READ: Telecom giant pays N1.85 million to subscriber following CPC order

"MTN Nigeria has today made an agreed without prejudice good faith payment of 50 Billion Naira ($251.3 million) to the Federal Government of Nigeria on the basis that this will be applied towards a settlement, where one is eventually, hopefully arrived at," the company said, according to a Reuters report.

The company is making the move with the hopes that it will be able to reach an amicable settlement with the Federal Government, following the withdrawal of its case against the NCC from the court.

It is unclear if this is part of the out-of-court settlement which the company requested that court grant it, and there has been no word from the NCC regarding the issue.

folarin okunola