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MTN completes N330 billion SIM infraction fine after 4-years

Telecommunication giant, @MTNN has paid the last tranche of the N330 billion fine imposed by @NgComCommission.

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MTN Group Limited, NLC

Telecommunication giant, MTN Nigeria Communications Plc, has paid the last tranche of the N330 billion fine imposed by the Nigerian Communications Commission (NCC).

The final payment means that MTN has completed the N330 billion infraction fine and no longer owes  the Federal Government.

The development was disclosed by MTN Nigeria’s Chief Corporate Relations OfficerTobechukwu Okigbo. According to him, the successful resolution of the fine was as a result of strong collaboration between the company and the NCC.

“We are very pleased to have completed the payment of the N330 billion negotiated settlement with the NCC. We are particularly gratified to be in a position to have fully met the terms of the settlement within the agreed timeframes.

“I would like to thank the NCC for their constructive and collaborative approach to this issue, and believe that we emerge from it with a stronger relationship, focused on ensuring maximum value is delivered to our people, from a strong and growing telecoms sector.”

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Back Story – In October 2015, NCC imposed a fine of N1.04 trillion fine on the telecom giant for non-compliance with a deadline set by the commission to disconnect all non-registered sim cards. The move by NCC followed accusations by mobile phone users that the regulator had failed to bring operators to account for poor services to subscribers.

Meanwhile, NCC later reduced the fine to N780 billion in December 2015, having taken into consideration the interest of the stability of the telecom sector. The fine was further reduced to N330 billion, even as MTN agreed to be listed on the Nigeria Stock Exchange (NSE). These agreements have now been fulfilled by MTN, including its Lising of 20.3 billion Shares in May 2019.

Payment in tranches: By the terms of agreement, MTN was expected to pay N30 billion into NCC’s Treasury Single Account (TSA) with the Central Bank of Nigeria (CBN) in June while the remaining balance was expected to be discharged as follows: N30 billion on 31 March 2017; N55 billion on 31 March 2018; N55 billion on 31 December 2018; N55 billion on 31 March 2019 and N55 billion on 31 May 2019.

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In fulfillment of its agreement with NCC, MTN recently disclosed it has so far remitted N235 billion of the N330 billion. Later in the month, NCC disclosed that the sum of N275 billion had been paid.

“Following a negotiated reduction of the N1.04 trillion fine on MTN Nigeria to N330 billion and in line with the staggered payment arrangement, MTN has, so far, paid N275 billion to the Federal Government”. – NCC

Upshots – MTN’s completion of the fine imposed by NCC is in fulfillment to the May 31st deadline set by the commission. Meanwhile, this is a welcome development as it means more money for the government. However, this is not expected to have any dip on the company’s financial performance as the 2018 FY result shows its operating profit grew by 36%.

Although, other factors may, as investors have been advised to exercise patience until more information is made available to the public regarding the investigation of Economic and Financial Crimes Commission (EFCC), Securities and Exchange Commission (SEC) into the company’s listing activities.

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Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

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Economy & Politics

Nigeria to exit recession by first quarter of 2021

The Minister of Finance has said that Nigeria will exit the economic recession by the first quarter of 2021.

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Finance, Ministaer, vow to recover AMCON debt through issuance of promissory notes, FG reiterates stance on IPPIS as ASUU threatens strike, Finance Minister, Zainab Ahmed identifies capital market as key driver for economic growth , Nigeria has paid $1.09 billion to service its debts in 2019  , Dividends on oil proceeds will be taxed - FG , State governments own most bad roads - Finance Minister says, Budget deficit increases by N351.98 billion, as FG misses revenue target, Economy: Funding MSMEs in Nigeria , Finance Bill: New tax regime to take effect from Jan 2 - FG , Again, Finance Minister argues that Nigeria is not in debt distress , ECOWAS: Single currency regime not kicking off in 2020  , FG: CBN holds N43 billion stamp duty charges collected by banks , FG may shift deadline to deactivate bank accounts without tax verification, Confusion as ministry and presidency disagree over Finance Act start date, 7.5% VAT: Implementation to begin Feb 1 – FG , Finance Minister: Nigeria to go into recession if ..., Foreign tech companies that will now pay tax to FGN: see the criteria

The Minister for Finance, Budget and National Planning, Mrs. Zainab Ahmed, on Monday, November 23, 2020, said the country will exit recession by the first quarter of 2021 as the Nigerian government is working towards reversing the declining economic trend in the country.

According to Channels Television, this disclosure was made by Mrs. Zainab Ahmed while speaking on the latest GDP figures released by the National Bureau of Statistics (NBS) about the current recession in the country at the ongoing 26th Nigerian Economic Summit, organized by the Nigerian Economic Summit Group (NESG) and the Federal Ministry of Finance, Budget, and National Planning.

The Finance Minister said the COVID-19-induced recession followed the pattern across the world, where many countries had entered an economic recession.

Ahmed said, “Nigeria is not alone in this, but I will say that Nigeria has outperformed all of these economies in terms of the record of a negative growth.”

The country’s economy posted a second consecutive negative growth, contracting by 3.62% in the third quarter. This negative growth is much better than the 6.01% that was earlier forecasted by the NBS.

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Also at the Economic Summit, Vice President Yemi Osinbajo, emphasized that the government is committed to working in synergy with the private sector to foster equitable growth and underpin national development.

The 26th Nigerian Economic Summit focuses on building resilient partnerships for Nigeria’s households, businesses, and the general economy.

What you should know

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It can be recalled that on Saturday, NBS announced that the country had entered its second recession in 5 years in the third quarter of this year, as the Gross Domestic Product (GDP) fell for the second consecutive quarter.

According to figures released by the Nigeria Bureau of Statistics (NBS), cumulative Gross Domestic Product (GDP) for the first nine months of 2020, therefore, stood at -2.48%, just as it recorded a -6.10% in the second quarter.

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Sports

CAF President banned for 5 years for breaching FIFA Code of Ethics

CAF President has been sanctioned with a 5 years ban after being found guilty of breaching FIFA Code of Ethics.

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Mr. Ahmad Ahmad, the President of Confederation of African Football (CAF), African’s football governing body, has been sanctioned with a 5 years ban from all “football-related activities (administrative, sports or any other) at both national and international level” after being found guilty of breaching FIFA Code of Ethics by the adjudicatory chamber of the independent Ethics Committee.

The 60-year-old Malagasy assumed office as the President of the Confederation of African Football (CAF) on 16th March, 2017.

His position also makes him a FIFA Vice President. Since his assumption of office, his four-year term has been clouded with allegations of financial wrongdoing and misconduct.

Mr. Ahmad was found guilty by the adjudicatory chamber of the independent Ethics Committee of having breached art. 15 (Duty of loyalty), art. 20 (Offering and accepting gifts or other benefits), and art. 25 (Abuse of position) of the 2020 edition of the FIFA Code of Ethics, as well as art. 28 (Misappropriation of funds) of the 2018 edition. In addition, a fine in the amount of CHF 200,000 (#83,754,093.14) was imposed on him.

However, Ahmad can appeal his sanction at the Court of Arbitration for Sport (CAS) once he has received the full grounds for the decision, a process that can take up to 60 days.

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Fifa released the following statement on the matter today:

The adjudicatory chamber of the independent Ethics Committee has found Ahmad Ahmad, the President of the Confederation of African Football (CAF) and a FIFA Vice-President, guilty of having breached art. 15 (Duty of loyalty), art. 20 (Offering and accepting gifts or other benefits) and art. 25 (Abuse of position) of the 2020 edition of the FIFA Code of Ethics, as well as art. 28 (Misappropriation of funds) of the 2018 edition.”

“The investigation into Mr. Ahmad’s conduct in his position as CAF President during the period from 2017 to 2019 concerned various CAF related governance issues, including the organization and financing of an Umrah pilgrimage to Mecca, his involvement in CAF’s dealings with the sports equipment company Tactical Steel and other activities.”

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“In its decision, following an extensive hearing, the adjudicatory chamber ruled that, based on information gathered by the investigatory chamber, Mr. Ahmad had breached his duty of loyalty, offered gifts and other benefits, mismanaged funds and abused his position as the CAF President, pursuant to the FIFA Code of Ethics.”

“Consequently, the adjudicatory chamber found that Mr. Ahmad had breached arts 15, 20 and 25 of the current edition of the FIFA Code of Ethics, as well as art. 28 of the 2018 edition, and sanctioned him with a ban from all football-related activity (administrative, sports or any other) at both national and international level for five years. In addition, a fine in the amount of CHF 200,000 has been imposed on Mr. Ahmad.”

“The terms of the decision were notified to Mr. Ahmad today, the date on which the ban comes into force. In accordance with art. 78 par. 2 of the FIFA Code of Ethics, the full, motivated decision will be notified to Mr. Ahmad in the next 60 days, after which it will be published on legal.fifa.com.”

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Business News

United Securities Limited changes name to Coronation Registrars Limited

United Securities Limited formally notifies its numerous customers and stakeholders of a change of name to Coronation Registrars Limited.

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In line with section 30(3) of the Companies and Allied Matters Act 2020 (CAMA), United Securities Limited has formally notified its numerous customers and stakeholders that it has obtained regulatory approval from the Corporate Affairs Commission to change its name to Coronation Registrars Limited.

The disclosure is contained in a verified post on Linkedln, signed by the firm’s Secretary, Omotoyosi Kola-Ojo, and seen by Nairametrics.

What this means

In line with the recent corporate action and according to section 30(5) of the Companies and Allied Matters Act, the company has been issued a new Certificate of Incorporation by the Registrar General of the commission, evidencing the change of name.

What they are saying

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A verified post by the Firm read thus: “The Public is hereby informed that United Securities Limited having passed the necessary Special Resolutions in line with Section 30(3) of Companies and Allied Matters Act 2020 (CAMA) and obtained the necessary regulatory approval of the Corporate Affairs Commission, has changed its name to CORONATION REGISTRARS LIMITED.

The public is further informed that pursuant to Section 30(5) of the Companies and Allied Matters Act, the company has been issued a new certificate of incorporation by the Registrar General of the Commission evidencing the change of name. All stakeholders are requested to take note of the above information.”

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