The
Nigerian Communications Commission (NCC) slapped a $5.2 billion fine on
MTN in October for failing to disconnect users with unregistered SIM
cards but after weeks of negotiations reduced it by 25 percent.
MTN,
which makes about 37 percent of its revenue from Nigeria, then filed a
suit in the West African country questioning NCC's legal grounds for
imposing the penalty.
"I'm not aware of any out-of-the-court settlement," telecoms minister Adebayo Shittu told reporters.
Shittu
said President Muhammadu Buhari will have the final decision on the
matter, adding that MTN might be advised to withdraw the court case
filed against the fine.
"If they withdraw it creates a better environment, an environment where there is no stress or pressure on either side," he said.
A
judge in Lagos, Nigeria's commercial capital, last week gave the
company until March 18 to try to reach a settlement with the Nigerian
authorities over the fine. The prospect of a lower fine boosted MTN
shares. [nL8N15622A]
The fine equates to more than twice MTN's annual average capital spending over the past five years.
Nigeria
has been trying to halt the widespread use of unregistered SIM cards
amid worries these are being used for criminal activity, including by
the militant Islamist group Boko Haram.
By: Julia Payne (Reuters Abuja).
Writing: Ulf Laessing and Chijioke Ohuocha.
Editing: Kevin Liffey and Keith Weir.
Review: Emerging Market Formulations & Research Unit, Flagship Records.
For The #FacebookTeam