As against the initial letter sent to MTN Nigeria by the Nigerian Communications Commission (NCC) about a 35 per cent reduction in the fine imposed on it, the NCC is insisting that the reduction is actually 25 per cent and not 35 per cent, thus admitting error in the initial letter sent to MTN Nigeria.
The initial fine was N1.04 trillion and 35 per cent reduction would take it down to N647 billion, while 25 per cent reduction amounts to N780 billion.
The media had yesterday reported a 35 per cent reduction in the N1.04 trillion fine, according to the letter MTN claimed to have received from NCC on December 2.
However, NCC said yesterday that the initial 35 per cent communicated to MTNN was in error and the actual reduction approved by the presidency was 25 per cent.
Director of Public Affairs, Tony Ojobo, who gave the clarification yesterday in Lagos, admitted there was an error in the initial letter sent to the telecommunications firm.
“The initial letter sent to MTN was in error and we have quickly communicated the actual rate of 25 per cent to MTN, as approved by the presidency,” Ojobo said.
According to the Executive Chairman of MTN, Phutuma Nhleko, in a statement sent to shareholders and made available to journalists, on December 3, shareholders were informed that MTN had received a formal letter from the NCC dated December 2, (the first Letter) informing the company that, after considering the company’s request, it had taken the decision to reduce the fine imposed on MTN Nigerian business from the original N1,040 trillion (the original fine) to N674 billion, which had to be paid by December 31.
The fine relates to the late disconnection of 5.1million MTN Nigerian subscribers in August and September 2015. This was a reduction of 35 per cent of the original fine.
Nhleko however, informed that late on December 3, the day after receipt of the first letter, the company received a further letter from the NCC dated December 3, 2015 (the second Letter). “The second letter, which was stated to supersede the first letter, informed the company that the fine had actually been reduced by 25 per cent to N780 billion and not by 35 per cent to N674 billion, as was stated in the first letter. The payment date remained December 31.
“Neither the first letter nor the second letter sets out any details on how the reduction was determined”, he stated.
The embattled telecommunications company said it was carefully considering both the first letter and the second letter, and that Nhleko would immediately and urgently re-engage with the Nigerian authorities before responding formally, “as it is essential for the company to follow due process to ensure the best outcome for the firm, its stakeholders and the Nigerian authorities, and accordingly all factors having a bearing on the situation will be thoroughly and carefully considered before the company arrives at a final decision.”
MTN advised its shareholders to continue to exercise caution when dealing in the company’s securities until a further announcement is made.
According to Ojobo, NCC never expected that the operator would default on the regulation because in 2011, when the regulation around SIM card was made, they were all aware and pledged to abide by the rules.
“So, it came as a shock to us when after sanctioning all the operators earlier in July, where MTN paid N120 million for SIM card infractions, they still went ahead to as far as leaving 5.2 million defective SIMs on their network. That obviously warranted more sanctions.”
Ojobo, who said a breach is a breach regardless of the amount, disclosed that it signifies that it is no longer business as usual in Nigeria.
