The Nigerian government is playing hardball with MTN, demanding that the telecommunications operator pay a US$3,9bn fine for failing to cut off 5m unregistered Sim cards before 31 December, according to a report.
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“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”, Bloomberg quoted Victor Oluwadamilare, the spokesman for communications minister Adebayo Shittu, as saying.
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He, however, said that “it is unwise for MTN to go to court after the Federal Government had magnanimously reduced the fine”.
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NCC accused MTN of infringing copyrighted work of musician Dovie Omenuwoma-Eniwo in October and issued a fine of $5.2 billion, but it was reduced to $3.9 billion after a number of appeals. “It will surely be fined for violating the rule at the expiration of the deadline, should it fail to pay the initial fine”.
According to the Guardian Online report, MTN also affirms in the suit that it was not afforded its constitutional right to be heard fairly before a court of competent jurisdiction, particularly because it had not been found guilty of any offence that will be worth such an “outrageous” fine.
“The fact of the case is that the decision to go to court was a very hard one for MTN, coming after all attempts at a sustainable resolution were exhausted”.
“It is important to state that seeking judicial determination was a last resort”.
“The company will continue to engage with the Nigerian authorities to try and ensure an amicable resolution”, claimed MTN.
Others said the fine showed Nigerian regulators were keen to enforce the law. As it stands, payment is due on 31 December 2015. Fabian Ajogwu, Dr. Oladapo Olanipekun – all of whom are senior advocates, is challenging the powers of the NCC to impose such a fine on it, through an originating summons.
The official said being a significant contributor in Nigeria, MTN also had an obligation to protect the interests of its ecosystem of millions of Nigerians who are directly and indirectly affected by its business operations and continuity.
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The penalty was incurred after MTN failed to comply with a regulatory order to disconnect unregistered SIMs as part of Nigeria’s drive to verify subscribers as a counter-terrorism measure.
