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'MTN's fine should not exceed its annual profit'

Nigeria , 28 Apr 2016

'MTN's fine should not exceed its annual profit'

The Association of Telecom Companies of Nigeria (ATCON) has appealed to the government for leniency on behalf of its member, MTN Nigeria.

Telcos have said the fine imposed by the Nigerian Communications Commission (NCC) on the mobile operator should not be more than its annual profit.

Using their affiliation with the Association, the telcos engaged authorities and said MTN had lost its reputation, market value and revenue.

"Without any doubt, MTN has learnt from its mistake," said Association President Engr. Lanre Ajayi.

Speaking at an event in honour of the Minister of Communication Barrister Adebayo Shittu, Ajayi said, "MTN has been through a lot – it has significantly lost its reputation in addition to market value and revenue. They have learnt from their mistake and we are pleading on their behalf for leniency. We are convinced that the breach was not done with criminal intention to injure their national security."

He urged the Nigerian government to reduce the fine, specifically to a figure that does not exceed MTN's profit in a year.

Deliberations stalled

Ongoing investigation by the Nigerian Federal House of Assembly into circumstances surrounding the fine has forced stakeholders to suspend deliberations.

According to the Communications Minister, negotiations will resume once the investigations have been concluded.

At a recent hearing aimed at clarifying the roles of various stakeholders – including the operator, NCC, communications minister and attorney general - who brokered the 'payment in good faith deal with MTN', Nigeria's attorney general and minister for justice, Abubakar Malami, told lawmakers that MTN was not compelled to pay the fine since it was not imposed by a court of law.

According to Malami the fine is, at best, a penalty.

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