MTN Agrees To Nigeria Fine Payment

MTN has agreed to pay $1.671bn over three years to settle its case with the Nigerian government — about a third of the $5.2bn it was originally fined in October.

"MTN is pleased to inform shareholders that the matter has been resolved with the Federal Government of Nigeria," the cellphone network said in a statement on Friday.

"MTN Nigeria has agreed to pay a total cash amount of 330-billion naira over three years (the equivalent of $1.671bn at the official exchange rate and $902m at the Lagos parallel market rate) to the government in full and final settlement of the matter," the statement said.

A payment of 50-billion naira on February 24 was part of the settlement, MTN said.
At 1.05pm on Friday, MTN’s shares were up 14% to R141.

The original fine was $1,000 for each of 5.2-million subscribers MTN failed to register as ordered by Nigerian authorities in their drive to curb Boko Haram militants using cellphones to co-ordinate attacks and trade oil for weapons.

On March 8, Nigerian President Muhammadu Buhari told President Jacob Zuma: "You know how the unregistered GSM SIM cards are being used by terrorists and between 2009 and today, at least 10,000 Nigerians were killed by Boko Haram, at least 10,000."

MTN group executive chairman Phuthuma Nhleko said in Friday’s statement that "expressed his thanks and gratitude to the Federal Government of Nigeria for the spirit in which the matter was resolved and believes this is the best outcome for the company, its stakeholders, the government and the Nigerian people and that the relationship between MTN, the government and the Nigerian Communications Commission has been restored and strengthened".