After MTN failed to register 5.2 million SIM cards in Nigeria properly, the mobile operator was fined a sum close to R72.2 billion. While MTN is fighting that amount in court, the company has agreed to make a payment of 50 Billion Naira (USD250 million / RR3.8 billion) to the Federal Government of Nigeria.
But there’s a catch: this is a “good faith payment”. Once the court matter is settled that amount will be deducted from the final settlement the company is forced to pay.
Furthermore, MTN is also withdrawing the case against the Nigerian government from the Federal High Court in Lagos.
This news comes from a message to their shareholders who were also warned to “exercise caution when dealing in the Company’s securities until a further announcement is made”.
And now, again, we play the waiting game. There’s no way of knowing yet how any of this will affect MTN’s customers.
Catch up with the MTN Nigeria story so far (articles in chronological order)
- This graph shows why MTN’s share price is tanking (and the other shows why it’s not so bad)
- All trading of MTN shares halted on JSE
- MTN CEO falls on his sword
- MTN won’t be paying its $5.2 billion fine today
- Nigerian President Buhari will rule on MTN’s fate
- Fine reduced by R25.8 billion
- Reduced fine increased by R9.7 billion
- R60bn fine to be challenged in court
- MTN Nigeria profits will pay less than a quarter of its fine
- Court case adjourned until March
[Source – Sharenet , Image – CC Warren Rohner]