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MTN fine, accountability dominate SA Nigeria talks

Nigeria , 09 Mar 2016

MTN fine, accountability dominate SA Nigeria talks

Nigeria's president Muhammadu Buhari yesterday accused telecoms giant MTN of complacency resulting in the death of more than 10,000 Nigerians when it failed to obey the government's order on SIM registration.

The president said this in Abuja while making his first public statement on the fine at a joint press conference with the president of South Africa, Jacob Zuma who is in on a two-day working visit to Nigeria.

According to the Nigerian president, the government was not concerned about the fine; instead, he said it took the step to ensure the security of citizens and properties across the country.

"I will personally as a president be making a public comment about it (the fine). The concern of the federal government is basically on the security and not the fine imposed on MTN. You know how the unregistered GSM are being used by terrorists.

"And between 2009 and today, at least 10,000 Nigerians were killed by Boko Haram. That was why NCC asked MTN, Glo and the rest of them to register GSM lines," Buhari said.

Following the announcement of President Zuma's visit to Nigeria, stakeholders in the Nigerian telecoms space had raised concerns over the impact the visit would have on the bilateral relations between the two countries in the light of the industry record fine slammed on MTN – a South African company and Nigeria's biggest network.

Buhari stressed that the operator was slow in implementing the directive from the Nigerian government and it led to the fine and the legal battles.

President Buhari said: "MTN was very very slow and contributed to the casualties. NCC looked at its regulations and imposed the fine. Unfortunately for MTN, they went to court and once you go to court, you virtually disarm the government because if the federal government refused to listen to the judiciary, it is going against its own constitution. Therefore, the government had to wait."

Probable options for MTN

The Nigerian president said the decision of MTN to withdraw the lawsuit was welcome and renegotiations would be made to determine what happens next. According to him, MTN is negotiating for a reduction in the fine sum in addition to a gradual payment plan.

"I think MTN has seen that and decided to withdraw the case and go back and negotiate with government agencies on what they consider a very steep fine to be reduced and maybe given time to pay gradually," Nigerian president said.

President Zuma said he is in Nigeria on the invitation of President Buhari. According to him, Nigeria and South Africa have an age-long relationship.

"I am happy to be here with my delegation which comprises both Ministers and businessmen. We feel truly at home in Nigeria. The relationship between South Africa and Nigeria date back to the time Nigeria supported and contributed to the liberation of our country and people," said Zuma.

"There are over 120 South African companies doing business in Nigeria just as over 4000 Nigerians travel to the country on monthly basis. Prior to 1999, there were only four South African companies in Nigeria. Since 1999, the situation has changed dramatically. Over 120 companies are currently doing business in Nigeria, in various sectors, mainly telecommunications, banking, retail, property, entertainment and hospitality. We welcome this significant development."

During President Zuma's visit to Nigeria, more than 30 bilateral agreements and memoranda of understanding have been signed by both countries.

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