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MTN settles with Nigeria over fine

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MTN has reached agreement with the Federal Government of Nigeria (FGN) over its fine.
The company has agreed to pay a total cash amount of Naira 330-billion over three years (the equivalent of $1,671-billion at the official exchange rate and $902-million at the Lagos Parallel Market Rate) to the FGN in full and final settlement of the matter.
The Naira 50-billion paid in good faith and without prejudice by MTN Nigeria on 24 February 2016
forms part of the monetary component of the settlement leaving a balance of Naira 280-billion
outstanding which will be discharged as follows:
* Naira 30-billion on 8 July 2016;
* Naira 30-billion on 31 March 2017;
* Naira 55-billion on 31 March 2018;
* Naira 55-billion on 31 December 2018;
* Naira 55-billion on 31 March 2019; and
* Naira 55-billion on 31 May 2019.
In addition to the monetary settlement:
* MTN Nigeria subscribes to the voluntary observance of the Code of Corporate Governance for the telecommunications industry and will ensure compulsory compliance when the code is made mandatory.
* MTN Nigeria undertakes to take immediate steps to ensure the listing of its shares on the Nigerian Stock Exchange as soon as commercially and legally possible after the date of execution of the settlement agreement.
* MTN Nigeria shall always ensure full compliance with its license terms and conditions as issued the by Nigerian Communication Commission (NCC).
MTN Group executive chairman Phuthuma Nhleko comments: “I express thanks and gratitude to the FGN for the spirit in which the matter was resolved and believes this is the best outcome for the company, its stakeholders, the FGN and the Nigerian people and that the relationship between MTN, the FGN and the NCC has been restored and strengthened.”