Nigeria will enforce a December 31 deadline for MTN
to pay a $3.9bn (R59bn) fine even after Africa’s biggest wireless
operator said it would challenge the penalty in a Lagos court, according
to a
spokesperson for the communications ministry.
“MTN has the
right to seek the court’s interpretation if it feels unsatisfied with
the action of the regulator, but nothing would stop the government
action on the fine,” Victor Oluwadamilare, the spokesperson for
Communications Minister Adebayo Shittu, said in an e-mailed response to
questions on Tuesday. Nigeria won’t consider an extension to the
deadline, he said.
MTN said on December 17 it will ask the court
to rule on the fine, saying that the penalty wasn’t within the powers of
the country’s telecommunications regulator to impose.
The
Johannesburg-based company’s shares have declined 26% since the fine was
made public almost two months ago. They gained 4.5% to R141.16 by the
close in the city, valuing the company at R261bn.
The Nigerian
communications regulator imposed the penalty on MTN for failing to meet a
deadline to disconnect 5.1 million unregistered subscribers as security
agencies seek to fight crime in a country with poor identity records.
The
initial fine of $5.2bn was reduced by 25% earlier this month following
talks with the regulator led by MTN chairperson Phuthuma Nhleko. MTN has
said it continues to engage with the Nigerian authorities even as it
seeks a resolution in court.
Oluwadamilare declined to comment on
what will happen if MTN misses the deadline, although Lagos-based
newspaper Vanguard cited Communications Minister Shittu as saying
another fine could be imposed.
MTN spokesperson Chris Maroleng didn’t immediately return a phone call or text message seeking comment.
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