MTN Agrees To Nigeria 330 Billion Naira ($1.67bn) Fine Payment

MTN

MTN Group said on Friday it will pay 330 billion naira ($1.67bn) over three years to the Nigerian government to settle a fine.

In October, Nigeria originally fined the mobile phone operator $5.2bn for failing to disconnect users in Africa’s most populous nation.

This brings the saga in Nigeria to an end, the operator told shareholders.

“MTN is pleased to inform shareholders that the matter has been resolved with the Federal Government of Nigeria (FGN) on the following terms: MTN Nigeria has agreed to pay a total cash amount of Naira 330 billion over three years (the equivalent of US$ 1.671 billion at the official exchange rate and US$902 million at the Lagos Parallel Market Rate) to the FGN in full and final settlement of the matter payable as set out hereunder,” the company said in a statement.

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MTN further said that the part payment of 50 billion naira made on February 24 forms part of the agreement.

The company will pay 30 billion naira by July 8, 30 billion by March 31 2017 and 55 billion naira by May 31 2019.

“MTN Nigeria undertakes to take immediate steps to ensure the listing of its shares on the Nigerian Stock Exchange as soon as commercially and legally possible after the date of execution of the settlement agreement; MTN Nigeria shall always ensure full compliance with its license terms and conditions as issued by Nigerian Communication Commission,” said the company.

MTN advised shareholders that it had withdrawn its cautionary announcement.

Source: Fin24

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