Images: The All New Jaguar XE With Connected Technologies

The new Jaguar XE now features updated interior and exterior designs, together with the latest connected technologies. The XE features Jaguar’s latest Pivi Pro infotainment...

Latest Posts

Aki Anastasiou Launches TecHub On eNCA

Aki Anastasiou, one of South Africa’s leading radio and TV personalities and avid tech lover, joins eNCA as the host of a brand-new technology...

Vodacom Offers Eligible Customers 6 Months of Amazon Prime Video

Vodacom has teamed up with Amazon to offer eligible customers 6 months of Amazon Prime Video. All existing and upgrading contract Vodacom customers can...

Which Are The Best Mobile Casino Games Right Now?

Online casinos are really popular among bettors because they allow them to play their favorite games without the need to visit any land-based facility....

A Few Things To Keep In Mind Before You Start Betting On Sports

Ever since online betting became so popular, many people have started placing online bets. Some of them have been following a specific team or...

MTN pays R3.8bn to settle Nigerian dispute

 

MTN has agreed to pay $250 million ( R3.87 billion) to settle dispute with the Nigerian authorities over the failure by the mobile phone giant to register subscribers. The South African-based telco said it made the payments to the Federal Government of Nigeria on Wednesday and anticipate that it will be taken as a settlement to the ongoing dispute. By Gugu Lourie


MTN was given a December 31 2015 deadline to pay the R59 billion ($3.9 billion) fine for its failure to disconnect 5.2 million subscribers who did not register their SIM cards. The payment deadline has expired.

But the South African-based telco hired seven Senior Advocates of Nigeria (SAN) to fight the fine in the Federal High Court in Lagos. The initial fine was $5.2 billion and was in December reduced to $3.9 billion.

However, late January 2016 it emerged that MTN and the Nigerian authorities may reach an out of court settlement over the dispute.

The hearings of the dispute were expected before the Federal High Court in Lagos, Nigeria in the morning, Friday, 22 January 2016.

However, MTN informed investors that the judge adjourned the matter to 18 March 2016 in order to “enable the parties to try and settle the matter. If the parties are unable to reach a settlement the matter will then proceed on that date”.

On Wednesday, MTN informed investors that it has paid the Nigerian authorities 50 billion Naira.

“MTN Nigeria has today made an agreed without prejudice good faith payment of 50 billion Naira ($250 million) to the Federal Government of Nigeria on the basis that this will be applied towards a settlement, where one is eventually, hopefully arrived at,” MTN informed investors on the JSE on Wednesday.

“In an effort to achieve an amicable settlement, MTN has agreed to withdraw the matter from the Federal High Court in Lagos.”

Phuthuma Nhleko, MTN executive chairman
MTN old hand Phuthuma Nhleko has been put back in charge for six months to steady the ship

The telco further advised its shareholders that its executive chairman, Phuthuma Nhleko, is continuing to lead the team engaging the Nigerian authorities with a view to settling the matter.

“Shareholders are therefore advised to continue to exercise caution when dealing in the company’s securities wuntil a further announcement is made.”

The news pushed up MTN share by 1.88% to R130.30 by 1423 on Wednesday, pushing the company’s market value up to R236 billion.

MTN is due to report its 2015 financial results on 3 March and has already warned that its profit will be hit hard by a number of factors with the operational underperformance in Nigeria, resulting from the subscriber disconnections and the withholding of regulatory services.

The company expects to report a 20% reduction in basic headline earnings per share (HEPS) for the full-year to end-December 2015.

The expected decrease in earnings for MTN will exclude the proposed R59 billion fine by the Nigerian communications watchdog, MTN explains.

The company said HEPS will be reduced to 307 cents for the year ended 31 December 2015 compared to 1 536 cents in the year to end 2014.

Earlier in January, MTN’s Nigeria CEO Ferdi Moolman told Leadership newspaper  that the $3.9 billion  fine imposed on MTN Nigeria by the Nigerian Communications Commission (NCC) could bankrupt the mobile phone operator as it represents 95% of its annual turnover.

The debacle has resulted in MTN Nigeria’s CEO Michael Ikpoki and the head of Regulatory and Corporate Affairs Akinwale Goodluck to resign.

MTN  Group CEO Sifiso Dabengwa also tendered his resignation.

 

Latest Posts

Aki Anastasiou Launches TecHub On eNCA

Aki Anastasiou, one of South Africa’s leading radio and TV personalities and avid tech lover, joins eNCA as the host of a brand-new technology...

Vodacom Offers Eligible Customers 6 Months of Amazon Prime Video

Vodacom has teamed up with Amazon to offer eligible customers 6 months of Amazon Prime Video. All existing and upgrading contract Vodacom customers can...

Which Are The Best Mobile Casino Games Right Now?

Online casinos are really popular among bettors because they allow them to play their favorite games without the need to visit any land-based facility....

A Few Things To Keep In Mind Before You Start Betting On Sports

Ever since online betting became so popular, many people have started placing online bets. Some of them have been following a specific team or...

Don't Miss

Uber Introduces Medicine Delivery In South Africa

Uber announced on Thursday a South African-first pharmacy offering with Medicare that will now provide users with access to over-the-counter medication (self-medication). The company will...

ICTU Suspends Strike at Cell C

The Information Communications and Technology Union (ICTU) has suspended strike action by its members who work for Cell C. The nationwide strike at the embattled cellphone operator, sparked by...

Drivers Improving the Business Case for Solar

COVID-19 presented businesses across the board with the opportunity to re-evaluate both their operational models and costs. Proactive organisations found themselves navigating the wake...

Vodacom Urges Consumers to Contribute Towards the Green Economy and Recycling

A record 53.6 million metric tonnes (Mt) of electronic waste was generated worldwide in 2019, up 21 per cent in just five years, according...

Telkom Wants Competition Tribunal To Declare Vodacom, Rain Agreements a Merger

Telkom announced on Wednesday that it had approached the Competition Tribunal to declare the suite of spectrum arrangements between Vodacom and Rain as a...

Stay in touch

To be updated with all the latest news, offers and special announcements.

%d bloggers like this: