The Federal Government said MTN Nigeria should withdraw its suit from the Federal High Court, Lagos against the industry regulator, Nigerian Communications Commission (NCC) and the government if it wants an out-of-court settlement for the N1.04 trillion fine for not deactivating 5.1 million unregistered and poorly registered subscribers.
Minister of Communications Technology, Barrister Adebayo Shittu said it is a pre-condition for discussion of the fine for the mobile operator listed on the Johannesburg Stock Exchange (JSE). MTN makes about 37 percent of its revenue from Nigeria.
According to the news agency, Reuters, “I’m not aware of any out-of-the-court settlement,” telecoms minister Adebayo Shittu told reporters.
He said President Muhammadu Buhari will have the final decision on the matter, adding that MTN might be advised to withdraw the court case filed against the fine.
“If they withdraw it, it creates a better environment, an environment where there is no stress or pressure on either side,” he said.
Last week Friday, MTN sought for 60 days’ leave from the Presiding judge, Justice Mohammed Idris to discuss with NCC for an out-of-court settlement which was granted by the judge.
MTN in December 2015, filed the suit through its lawyers led by Chief Wole Olanipekun (SAN) arguing that NCC, being a regulator, cannot assume all the functions of the state on its own, considering the fact that they made the regulation, prescribed the penalty and imposed the fine, payable to the commission and not to the federal government.
MTN also claimed that it was not afforded its constitutional right of fair hearing before a court of competent jurisdiction and, more importantly, it had not been found guilty of any offence that will warrant it to pay such outrageous fine.
Following the request by MTN, the presiding Judge subsequently adjourned the matter till March 18, this year, when the two parties are expected to come back with their mutually-agreed decision.
MTN in a statement from its headquarters in South Africa said, “The judge adjourned the matter to 18 March 2016 in order to enable the parties to try and settle the matter. If the parties are unable to reach a settlement, the matter will then proceed on that date.”
In November, 2015, after negotiations with Nigerian authorities, the fine was reduced by 25 per cent to ₦780 billion. However, MTN opted to take it to court in Lagos, thereby missing a 31 December deadline imposed by the government.
