MTN accepts to pay $1.67bn Nigerian fine over 3 years

Africa’s telecommunications giant MTN has agreed to settle its fine with the Nigerian government.

MTN on Friday said that it will pay a reduced fine of 330 billion naira (about $1.67 billion) in a settlement with Nigerian authorities over failure to disconnect 5.1 million unregistered mobile phone users in the country.

MTN, has already paid 50 billion of the 330 billion naira owed. The rest will be paid in six installments over three years, the company said in a statement.

“MTN Nigeria once again offers its most sincere apologies for the series of unfortunate events that led to the imposition of the fine,” the statement said.

MTN has agreed to pay $1.671 bn over 3 yrs to settle its case in Nigeria — about a 3rd of the $5.2bn it was originally fined. #CaseSettled

— Clayson Monyela (@ClaysonMonyela) June 10, 2016

The news sent MTN shares soaring to as much as 21% on the Nigerian stock exchange.

The company will also kick start the process of listing its shares on its Nigerian unit on the country’s stock exchange.

The agreement ends eight months of start-and-stop negotiations with Nigerian officials over how to settle the fine.

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

Reuters