Nigeria’s largest telecoms operator MTN has reportedly set aside about $600 million (about NGN118.8 billion) for potential settlement of the fine slammed on it by the Nigerian Communications Commission (NCC), this was announced by the Executive Chairman of MTN Group South Africa, Phuthuma Nhleko. MTN’s plan suggests that the network believes the NGN780 billion fine may be reduced to 15 per cent of the total fine.
Nhleko also disclosed that MTN Nigeria may be listed on the Nigerian Stock Exchange (NSE). Speaking while announcing MTN’s 2015 results he said the listing would take place in Lagos once the company resolves the disputed fine with the Nigerian government.
Nhleko said: “MTN’s auditors have required that the company make a provision in line with the International Financial Reporting Standards (IFRS). Discussions with the Nigerian authorities continue on the matter.”
The management of MTN Nigeria, however, clarifed that the $600 million set aside in the financial results was in accordance with the principle of prudence in generally accepted accounting standards. This requires that reasonable provisions be made for contingent liabilities.
MTN Nigeria invested $94 million in renewing its 2G licences. It also concluded the acquisition of Visafone Communications.
Chief Executive Officer of MTN Nigeria, Mr. Ferdi Moolman, said: “We have invested more than $16bn in Nigeria over the past 15 years and contribute an estimated 4.5% to GDP. We are proud of the fact that we are an integral part of the Nigerian economic and social fabric. We remain committed to the country and our top priorities are to improve network and service quality, as well as data speeds for our customers.
“Compliance with regulatory requirements also remain a focus. Although subscriber registration is highly complex given limited national identity databases and personal documentation, we remain committed to registering subscribers with the use of improved systems and processes.”
Moolman added: “We have put in place the operating and management structures, as well as made critical investments, to ensure that we improve our competitiveness in 2016. MTN is an enabler of socio economic growth in Nigeria.
