Friday 1 January 2016

NCC waxes soft as MTN shuns December 31st fine deadline

Nigerian Communications Commission (NCC) has waxed soft after it talked tough and threatened action if MTN does not pay the $3.9bn fine before the December 31, 2015 deadline.

The MTN had earlier challenged the commissions authority to impose such a fine on the company.

According to the NCC, the court case instituted against it by MTN Nigeria may stall the enforcement of the $3.9bn fine imposed on MTN which was reduced from $5.2bn initially.

MTN, Africa’s largest telecoms giant filed suit in the Federal High Court in Lagos, seeking to quash the fine imposed on it by the telecoms regulatory body for failing to disconnect 5.1 million unregistered subscribers.

According to a source (name withheld) at the NCC, he said; “The commission was served last week Tuesday and our legal team is currently studying the suit. So, we cannot take any official action in terms of enforcement of the $3.9 billion fine until the court determines the matter. As it is now the commission cannot take any official action against MTN since the matter is still in court because it would amount to subjugation. Meanwhile our lawyers are studying the suit and will advice us on the next step to take once they are through.”

MTN through its lawyers led by a former Nigerian Bar Association (NBA) president Chief Wole Olanipekun (SAN) is challenging NCC’s powers to impose the fine. It argued that NCC being a regulator cannot assume all the functions of the state.

The Communications Minister, Mr. Adebayo Shittu had earlier informed the public that the Federal Government has engaged Five Senior Advocated of Nigeria (SANs) to challenge the suit brought against the Nigerian Communications Commission in court.

The Minister also threatened to sanction MTN inspite of the court case but as at the time of filing this report there has been no punitive action against the telecoms company.

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