MTN To Sue NCC Over N780b Fine

Unsatisfied with the "manner of the imposition of the fine and the quantum" of the N780b penalty imposed on it by Nigerian Communications Commission, NCC, Mobile Telecommunications Network, MTN has declared its intention to challenge the telecoms regulator in court.

MTN said that based on legal advice, it would contest the constitutional authority of the NCC to impose the fine.

See the statement issued by MTN Group Corporate Affairs office on the matter.

“Further to the SENS announcement issued by the company on 4 December 2015, shareholders are advised 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.

“MTN Nigeria acting on legal advice has resolved that the manner of the imposition of the fine and the quantum thereof is not in accordance with the NCC’s powers under the Nigerian Communications Act and therefore there are valid grounds upon which to challenge the fine.

“Accordingly MTN has followed due process and has instructed its lawyers to proceed with an action in the Federal High Court in Lagos seeking the appropriate reliefs.

“MTN is advised that in the current circumstances in line with the lis pendens rule (pending legal action) the parties are enjoined to restrain from taking further action until the matter is finally determined. This is consistent with previous judicial decisions in Nigeria.

“Notwithstanding this action, the company will 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.”

However, NCC's Director, Public Affairs, Mr Tony Ojobo said that the commission is yet to receive MTN's court papers.

The NCC had earlier imposed a 1.4 trillion naira fine on MTN for failing to disconnect over five million unregistered SIM cards from its network.

The fine was reduced to N780b following MTN's plea for leniency and intervention from the presidency.

MTN has up to 31 December 2015 to pay the fine.