South African telecoms group MTN will take immediate steps to list shares in Nigeria as part of a deal to settle a dispute over unregistered SIM cards and will also issue an apology, according to a copy of the agreement seen by Reuters.

The company said on Friday, after months of talks, that it had agreed to pay a fine of $1.7 billion in a settlement with the Nigerian government for failing to deactivate more than 5 million unregistered SIM cards. [nL8N1922BY]

Nigeria, battling its worst economic crisis for decades, had agreed to cut the fine initially demanded by almost 70 percent after MTN threatened to shut down its operations in the West African nation, a Nigerian official said on Friday.

Under the agreement MTN will strengthen its presence in Africa’s biggest economy by listing its local unit, a plan held up by the prolonged dispute, according to the copy of the agreement obtained by Reuters on Monday.

“MTN undertakes immediate steps to ensure the listing of its shares on the Nigerian Stock Exchange as soon as commercially and legal possible after the date of execution,” the agreement said.

The South African mobile phone giant will also issue an apology to the Nigerian government and people within one month of the execution of the deal, the agreement said.

The group – which filed a lawsuit against the fine before opting for an out-of-court deal – will also cover its own legal costs, the agreement said.

Nigeria has been cracking down on unregistered SIM cards, concerned they are used for criminal activity in a country fighting an insurgency by Islamist militant group Boko Haram.

The fine will be paid by MTN Nigeria over three years and is only around a third of the $5.2 billion figure initially demanded by the west African country last October.

Nigeria’s House of Representatives was due to question the communications minister and a senior official from the regulator on Monday, but the hearing was delaying for one week, lawmakers said.

The lower house of parliament said on Friday it was surprised by the deal as its own probe into the MTN fine had not been concluded. In March, the lower house launched an investigation into whether reducing the initial fine of $5.2 billion would require changing the law.

MTN is the largest mobile phone operator in Nigeria with 62 million subscribers and the west African nation accounts for about one third of its revenues.

Africa’s largest telecoms company has already paid 50 billion of the 330 billion naira owed. The rest will be paid in six instalments over three years, the company said. It set aside $600 million in March to pay the fine.

http://www.financialwatchngr.com/2016/06/14/mtn-take-immediate-steps-list-nigeria-part-1-7-bln-fine-deal/

Is not all about making laws but enforcement, I know that the federal government lack balls to stick with the fine Accordingly.... Anyways half bread is Better than Non.





Awof money loading from MTN !

NCC should checkmate Glo and their poor internet services..

That's great. But who still buys shares?

IAMLOOSEWEIGHT

Who go buy their shares, fkking stingy company. At the end they will give someone dividend of #0.001

MTN....they always find their way

No way ho

Long overdue. Respect the goose that lays...

you want to force MTN to enlist in Nigeria when GLO has not.....buhari sef...well he wouldnt listen to advice sef while waste my time.





so this govt think MTN will save this country economic woes

Nice One...
Lemme Buy too

Hmm mm. ..I just hope this is not all talk and propaganda sha ooo!!

I hope it's not.

It would be nice if this is carried out as said and also let not those scavengers swallow the awoof money when MTN finally pays...this is a bitter lesson for good one for future business deals here

Cut the fine by almost 70% ! Buhari sabi fear like woman

OK I understand the excuse why the fine was cut by almost 70% but still that don't justify it.
obviously we lack balls in our government seeing the rate at which these foreign firms oppress and molest Nigerians in our own domain.

if not 4 network issues GLO seems to be a better option than all the other network providers combineD.

AND has anyone noticed the change in behavior of MTN recently,I mean they seemed to be more humble day by day.thank GOD 4 d competition GLO and ETISALAT brings.AIRTEL is plain shït.

mtn has stopped being what they used to

most Nigerians are disenchanted


thanks God for competition


i hope people would buy their so called shares

Good moves if you ask me

good investment.

better than holding bank shares or even oil & gas...

new millionaires will emerge in the first few months of listing.

dont dull

Mtn bring back our money


with immediate effect

Good move

gun for them

MTN threatened to leave and it startled the FG?.. The FG should have called their Bluff..

over wise they kill mtn, so they want to use Nigerians to pay their fine. thunder fire mtn

Mtn threaten to pull out of Nigeria? Why didn't they take that option? They should have called their bluff.

very good

This Land is Not For Sale

Some stockbrokers are already itching for the shares!

Listing on the NSE has been long overdue for telecommunications companies in Nigeria especially MTN, GLO, AIRTEL and ETISALAT. How can we just allow those crook to keep been a private company in Nigeria thereby hiding a chunk of their income and cheating the FIRS on tax? The FGN should make it compulsory for them all.

What a fine!!

Lemme hear Bubu say he will go and borrow money from anybody again or that Nigerian is broke

emmykk:
you want to force MTN to enlist in Nigeria when GLO has not.....buhari sef...well he would listen to advice sef while waste my time.





so this govt think MTN will save this country economic woes

MTN is a mkt leader, when they list the competition will follow suit.

Dats a good step. I commend the FG for the fine even though the fine has been reviewed downward. The important message will be passed to others that it is not business as usual. #RespectUrHost

Getting somewhere...

saintdennis:


MTN is a mkt leader, when they list the competition will follow suit.

they should have force all of them at the same time.so you want to give the market leader yet another "advantage" like when they started

I doubt if MTN will realize such amount through the sale shares. The present economy is not smiling though hope is not lost