An announcement was just made by #MTN, in reaction to the fine imposed on them last year, for failing to deactivate the 5.1 billion unregistered sim cards before the deadline of 11th August 2015. The announcement confirmed the payment of $250million USD, the equivalence of 50billion naira to the Nigerian Government.
The penalty was calculated at a rate of N200, 000 per unregistered sim by the Nigerian Communication Unit, landing a total of $5.2 billion as a consequence of their failure to meet the deadline. After several negotiations, the fine was reduced by 35% to $3.4billion which was later corrected to $3.9billion (25%). By this time, the stock of MTN had taken a huge hit and they decided to take legal action against the NCC.
As anticipated, following the announcement of payment and withdrawal of the lawsuit, the floodgates of MTN’s share price opened. The investors are glad that the future of MTN’s Nigerian subsidiary (which happens to be the largest) is no longer in jeopardy. MTN firmly held that their actions are a “gesture of good faith and commitment to continued efforts towards an amicable resolution”.