MTN on Thursday released an update on the fine imposed on MTN Nigeria‚ saying it would go to the Federal High Court in Lagos to challenge the fine.
The company said it had resolved that the manner in which $5.2-billion fine was imposed was “not in accordance with the Nigerian Communications Commission’s powers under the Nigerian Communications Act and therefore there are valid grounds upon which to challenge the fine”.
The company advised its shareholders “that all factors having a bearing on the matter have been thoroughly and carefully considered including a review of the circumstances leading to the fine and the subsequent letters received from the NCC“.
“Shareholders are therefore advised to continue to exercise caution when dealing in the Company’s securities until a further announcement is made.”
Nigerian authorities imposed the $5.2bn fine on MTN Nigeria in October for failing to cut off users with unregistered subscribers.
The NCC cut the fine by 25% earlier this month to $3.9bn and gave the company until year-end to pay it‚ but MTN is seeking a further reduction.
MTN said it would “continue to engage with the Nigerian Authorities to try and ensure an amicable resolution in the best interests of the Company‚ its stakeholders and the Nigerian Authorities“.
MTN to challenge fine in Lagos court
The company said it had resolved that the manner in which $5.2-billion fine was imposed was “not in accordance with the Nigerian Communications Commission’s powers under the Nigerian Communications Act and therefore there are valid grounds upon which to challenge the fine”.
The company advised its shareholders “that all factors having a bearing on the matter have been thoroughly and carefully considered including a review of the circumstances leading to the fine and the subsequent letters received from the NCC“.
“Shareholders are therefore advised to continue to exercise caution when dealing in the Company’s securities until a further announcement is made.”
Nigerian authorities imposed the $5.2bn fine on MTN Nigeria in October for failing to cut off users with unregistered subscribers.
The NCC cut the fine by 25% earlier this month to $3.9bn and gave the company until year-end to pay it‚ but MTN is seeking a further reduction.
MTN said it would “continue to engage with the Nigerian Authorities to try and ensure an amicable resolution in the best interests of the Company‚ its stakeholders and the Nigerian Authorities“.
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