MTN Nigeria has instructed its legal representatives to proceed with action in the Federal High Court in Lagos regarding the fine of US$3.9bn imposed by the Nigerian Communications Commission (NCC).

In a statement to shareholders issued yesterday the mobile operator said it was acting on legal advice which resolved that the manner of the imposition of the fine and the quantum thereof "is not in accordance with the NCC's powers under the Nigerian Communications Act and therefore there are valid grounds upon which to challenge the fine."

The company is therefore seeking appropriate reliefs from the Federal High Court.

According to the statement "MTN is advised that in the current circumstances in line with the lis pendens rule (pending legal action) the parties are enjoined to restrain from taking further action until the matter is finally determined. This is consistent with previous judicial decisions in Nigeria."

MTN has also stated it will continue to engage with Nigerian authorities to ensure an amicable resolution.

"Shareholders are therefore advised to continue to exercise caution when dealing in the Company's securities until a further announcement is made," the company stated.

In early December the South Africa-Nigeria Chamber of Commerce expressed its belief that the NCC was likely using an arbitrary method in determining adjustments to the original fine of US$5.2bn.

The NCC had also issued an ultimatum on the payment of the fine, instructing MTN that it had until the end of the year (2015) to finalise payment.