MTN takes legal route to solve $3.4 billion penalty

MTN South Africa
Telecom network operator MTN has decided to take legal route to solve the $3.4 billion revised penalty on MTN Nigeria.

MTN Nigeria feels that the huge penalty is not in line with the powers of Nigerian Communications Commission (NCC). The fine relates to the late disconnecting of 5.1 million MTN Nigerian subscribers in August and September 2015. Following the penalty, several resources of MTN Nigeria have already stepped down. MTN also announced a new business structure.

“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,” said MTN Group in a statement.

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 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,” said MTN.

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