South African telecoms firm MTN has withdrawn its suit against the Nigerian Communications Commission (NCC) and has paid N50 billion from the N780 billion fine ($3.9 billion fine).
MTN confirmed this on Wednesday in a statement.
A judge had given MTN until March to try to reach a settlement with Nigerian authorities over a disputed $3.9 billion fine.
Africa’s leading telecoms firm was fined by the Nigerian Communications Commission in October for failing to disconnect 5.1 million unregistered SIM users, prompting weeks of lobbying to reduce the fine.
The original fine imposed by NCC was N1.04 trillion.
After much appeal, the fine was reduced to N780 billion. Unsatisfied with the reduction in the fine, MTN filed a suit against NCC on Dec. 31st 2015.
According to a statement by MTN, the sum of N50bn was paid to the federal government “as a gesture of good faith and commitment to continued efforts towards an amicable resolution”.
MTN Nigeria’s CEO, Ferdi Moolman, while speaking on the new development, said
“This is a most encouraging development. It demonstrates a willingness and sincerity by both parties to work together towards a positive outcome. We are hopeful at this stage. Along with the authorities, it is clear that we are collectively committed to working towards a solution that is of mutual benefit to all parties. Our industry in Nigeria is an incredibly important example of the remarkable progress in ICT particularly as a much needed catalyst for socio-economic growth and development at this time.”
MTN, which is led by Executive Chairman Phuthuma Nhleko makes about 37 percent of its revenue from Nigeria, and the current fine equates to more than twice its annual average capital spending over the past five years.
Nhleko was put in charge for up to six months in November to help to steer the company through the crisis.
The NCC had last year directed mobile telecoms companies to deactivate all unregistered SIM cards or face severe sanctions.
MTN missed the deadline to deactivate its unregistered subscribers, prompting a 200,000-naira ($1,000) fine for each unregistered SIM.
Nigeria has been pushing operators to verify the identity of their subscribers, on concerns that unregistered SIM cards were being used for criminal activities in the country.
MTN is also fighting allegations for not paying tax in Cameroon.