South African mobile phone operator, MTN Group, has withdrawn its lawsuit against Nigeria’s regulator, Nigeria Communications Commission, NCC, over a 3.9 billion dollars fine and paid 250 million dollars toward a possible settlement.
A judge in Lagos last month gave both parties until March 18 to reach a settlement.
The settlement was opted for after MTN had asked the court to arbitrate over the dispute, saying NCC had no legal grounds to order the fine.
MTN said it would withdraw its court challenge in an effort to reach an amicable settlement and make a “good faith payment” of $250 million toward a possible settlement.
The group makes most of its sales in Nigeria,
“This is a sign that the fine could be reduced much further.
“There is some sort of negotiation taking place and the parties are migrating toward a common ground,” said Dobek Pater, Managing Director of Africa Analysis.
The original penalty was based on fining the company 1,000 dollars for every unregistered SIM card in use.
Shares in MTN, which are down about a third since the fine was first announced in October, rose 1.3 per cent to 129.53 rand (8.34 dollars).
Nigeria has been trying to halt the widespread use of unregistered SIM cards amid worries they are being used for criminal activity, including by the Islamist group, Boko Haram.
Do You Have Any Story, Press Release, Events Coverage Or You Want An Advert Placement?
Call The DailyBells Nigeria Today On Our Hotlines +234 802 523 7926, +234 806 017 6677 Or WHATSAPP On +234 802 523 7926
Email: email@example.com Or firstname.lastname@example.org.
All Rights Reserved. This Material And Any Other Material On THE DAILYBELLS NIGERIA Should Not Be Reproduced, Published Broadcast, Written Or Distributed In Full Or In Part, Without Written Permission From The Editor/CEO..