Telecom giants gets two-month ultimatum to settle with NCC over $3.9 billion fine

folarin okunola

January 25, 2016 10:22 AM

MTN’s lawyer, Chief Wole Olanipekun (SAN), has sought 60 days from the court to allow for further discussions between the parties

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, South Africa-based telecom giant, MTN Nigeria, has been given a 60-day ultimatum, per its request, to reach a settlement with the Nigerian Communications Commission (NCC) over the $3.9 billion fine imposed on it by the regulator.

MTN’s lawyer, Chief Wole Olanipekun (SAN), has sought 60 days from the court to allow for further discussions between the parties, while stating that the parties were exploring settlement options.

According to The Nation, the counsel for the Attorney-General of the Federation (AGF), Mr. Oladipo Okpeseyi, retorted that the telecommunication firm had not been consistent in its move for an amicable resolution.

“This is a matter of national importance. There has been concessions in the past and nothing happened,” Okpeseyi said, according to the report.

READ: Telecom giant seeks out of court settlement in NCC fine case

Justice Mohammed Idris granted MTN’s prayer and held that the preliminary objections and substantive application be taken together.

MTN Nigeria had been fined by the NCC in October for allegedly failing to disconnect 5.1 million unregistered subscribers.

The initial fine of $5.2 billion was reduced by 25 percent to $3.9 billion by the NCC, with a December 31, 2015, payment deadline.

MTN later challenged the NCC’s power to impose the fine in a court, arguing that the NCC being a regulator, could not assume all the functions of the state.

folarin okunola