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NCC Says MTN Listing on NSE will Empower Nigerians, Gives Update on N330 billion SIM Infraction Fine

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The Nigerian Communications Commission (NCC) on Tuesday said that MTN Nigeria PLC has paid N275bn SIM infraction fine and that balance of N55bn payment is due this month.

This is following a negotiated reduction of the N1.04 trillion fine on MTN Nigeria to N330 billion and in line with the staggered payment arrangement, so far, N275 billion has been paid to the Federal Government.

Part of the fallout of the negotiated terms of payment of the fine is the listing of MTN on the Nigerian Stock Exchange (NSE), and this is being done.

What this means, according to the staggered arrangement, is that May 31, 2019 would be the deadline for the telecoms company to pay the sixth and final tranche of the balance of N55 billion.

After six months of negotiation and re-negotiation over the fine which led to the reduction to N330 billion, it was agreed that MTN would pay a balance of N280 billion in six tranches.

This was in addition to the “goodwill” payment of N50 billion earlier made by MTN to the government.
Specifically, MTN began the payment structure with the payment of N30 billion into NCC’s Treasury Single Account (TSA) with the Central Bank of Nigeria (CBN) 30 days from the date of the agreement dated June 10 2016.

Subsequently, MTN paid N30 billion on March 31, 2017; N55 billion on March 31, 2018; N55 billion on December 31, 2018 and on March 31, it paid N55 billion.

The balance and final tranche of the payment will be paid by May 31, 2019, in line with the staggered payments structure agreed by MTN and Nigerian government.

It will be recalled that the NCC on October 20, 2015, imposed a fine of N1.04 trillion on MTN for infraction of the provision of the NCC Telephone Subscribers Registration Regulations 2011; for failure to disconnect 5.2 million improperly-registered Subscriber Identification Modules (SIM) lines within the prescribed deadline, because these lines had economic activities on them without proper registration.

In agreement reached by the parties involved in a way to avoid decision likely to cripple business interest of the operators the Commission regulates, it was also agreed that MTN shall apologise to Nigerians, subscribe to the compulsory observance of Code of Corporate Governance for Telecoms Industry; as well as undertake immediate steps to ensure its listing on the NSE.

Speaking on the state of MTN fine payment at the valedictory service organised for the Minister of Communications, Honourable Adebayo Shittu in Abuja on Monday, the Executive Vice Chairman (EVC) of NCC, Prof. Umar Garba Danbatta, said the Commission had succeeded in empowering Nigerians “to control, manage and own telecommunications companies in Nigeria by owning shares in MTN Nigeria.”

 

Danbatta explained that, through the MTN’s listing on the NSE, the Commission had translated into action, an important function of the Commission, which is to promote local investment and ownership in the telecom sector.

According to him, “By MTN listing on the stock exchange, we have given reality to that important function of the Commission.

“Through this listing, Nigerians will be empowered to control, own and manage one of dominant telecommunications companies in the country.

“With MTN shares available in the capital market, Nigerians will buy shares and by purchasing the shares of MTN, they will be financially empowered and be socially transformed.

“We consider this a very important milestone in translating the function of the Commission into reality, as enshrined in the Nigerian Communications Act 2003.”


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University.

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Telecom

Aside RoW, Other Roadblocks Hobble Telcos

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Ekiti, Kaduna, Imo, Katsina and Plateau states recently blazed the trail by implementing right of way (RoW) resolution of resolution of the Governors’ Forum in a bid to deepen broadband penetration in the country and promote a digital economy for a digital Nigeria.

Aside RoW, Other Roadblocks Hobble Telcosn

Right of way charge of per meter of fiber optics cabling is considered one of the most vexatious and biggest hindrances to growth in the industry

It is however, disheartening that some states have decided to disregard these resolutions and have, in some cases, increased the RoW charges by over 1,200 percent.

Experts believe that if all states in the country can implement the resolutions, it will facilitate digital literacy and accelerate broadband penetration across the country and also improve Nigeria’s Gross Domestic Product (GDP).

Apart from implementing the resolution on RoW, regulatory authorities must draw from its political will to prevail on the states and local governments to stop insisting on collecting taxes and levies on operators’ infrastructures such as base stations and masts.

The canker worm of multiple taxes by local, state and federal governments and their agencies is threatening the survival of the telecom sector.

At last count, the industry estimate they pay over N20 billion annually to various agencies of government.

Also, the problem of insecurity, which has assumed alarming proportions, is discouraging further investments.

Added to this, are the constant harassment, intimidation and killing of workers in the industry while equipment are stolen every day.

Another major problem is the thorny issue of Nigeria’s public power supply, which seems to have defiled all known solution.

A situation where telecom operators spend an incredible N45.9 billion (approximately $2.9 Billion) annual bill on diesels in running power supply to their infrastructure is unacceptable.

Power supply is like the nerve, in fact, the engine of production. The near absence of public power supply has a devastating effect on businesses and has forced many companies to close shop because they could no longer remain competitive.

Regulatory authorities must find appropriate way to communicate to governments at all level that the current RoW, tax, public power as well as state of insecurity cannot create a knowledge driven economy or so called new economy in which the generation and the exploitation of knowledge play the major part in the creation of wealth.


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Why Office was Withdrawn from NiDCOM- NCC

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Nigerian Communications Commission (NCC) has, again, clarified that Dr. Isa Ali Ibrahim Pantami, minister of Communications and Digital Economy, was never involved in the process of offer of office allocation to the Nigerians in Diaspora Commission (NiDCOM) at the NCC’s Communications and Digital Economy Complex located at Mbora District, Abuja, as the public is being made to believe.

Why Office was Withdrawn from NiDCOM- NCC

The Commission reiterated this position in a press statement signed by Dr. Henry Nkemadu, director Public Affairs, in which it made further clarifications to the members of public and other stakeholders on the situation.

“For the avoidance of doubt, the Honourable Minister of Communications and Digital Economy, Dr. Isa Ali Ibrahim Pantami, was never involved in the offer to the office space, nor in the withdrawal of the offer for same office space.  the Minister should not, therefore, be brought into the issue,” he said.

According to Dr. Nkemadu, the decision to withdraw the offer of office space from NiDCOM was purely of the NCC, the custodian of the office complex.

“It should, however, be made abundantly clear that the withdrawal of the offer of the office space, which was unconditionally given, in the first instance, to NiDCOM, was informed by exigencies and change in priorities within the NCC, which led to the taking back of the office space earlier allocated with intention of finding a suitable replacement for NiDCOM,” he said.

The Commission therefore reiterates its confidence in the leadership, person and office of the Honourable Minister of Communications and Digital Economy, Dr. Isa Ali Ibrahim Pantami


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MTN Nigeria Commences Payment of 2019 Company Income Tax Obligations

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MTN Nigeria has initiated payments for its 2019 Company Income Tax (CIT) obligations ahead of the statutory deadline of June 30th, in line with the request by the Federal Inland Revenue Service (FIRS) to corporate taxpayers whose operations are able to remain open during the COVID-19 pandemic.

As a result of constructive engagements with its Board and Management, MTN Nigeria agreed to continue its existing practice of initiating early payment for its CIT obligations.

In this regard, it has committed to making full payment in a series of instalments ahead of the June 30th deadline. As a demonstration of this commitment, it has made payment of the first instalment.

FIRS would like to thank MTN for this demonstration of support for Nigeria during a time of significant disruption to the nation’s economy, and also to MTN’s own business.

FIRS Chairman, Muhammad Nami is particularly happy with this prompt response by MTN Nigeria and urges other companies to emulate MTN Nigeria so that together we shall continue to support the growth of Nigeria’s economy as well as business enterprises in the country.

Commenting on the agreement, Ferdinand Moolman, ceo, MTN Nigeria said: “We value the relationship that we have built with the Federal Inland Revenue Service (FIRS) and are pleased to be able to deepen that relationship by collaborating closely with the government and its agencies to manage the challenge that COVID-19 represents to the nation.

“Conscious of the role companies’ play in sustaining government revenue and services, MTN has consistently initiated payments towards our CIT obligations well ahead of statutory deadlines and despite prevailing conditions.

“This year, the Board of MTN Nigeria has once again approved advance payments towards our annual tax obligations.”


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