A lot of drama has been dogging the cold relationship currently existing between the Nigerian Communications Commission (NCC) and Global System for Mobile Communications (GSM)/cellular phone technology giant, MTN. The icy relationship was ignited by the $5.2 billion (over N1.4 trillion) penalty NCC slammed on MTN last October for the latter’s failure to disconnect about 5.1 million subscribers with unregistered Subscriber Identity Module (SIM) cards bought before the scheduled August 2015 disconnection deadline. One of the foremost steps taken by the panic-stricken communication behemoth was the sack (some said forced resignation) of its Chief Executive Officer (CEO) in Nigeria, Mr. Michael Ikpoki. Another fallout was the top management reshuffle in MTN’s office in South Africa, which the telecom multinational’s Group Executive Chairman, Mr. Phuthuma Nhleko, said was meant to strengthen leadership, increase management capacity and improve operational oversight.
MTN followed this with official apology to NCC for its failure to keep to the disconnection deadline, and pleaded for a review of the crippling penalty. The NCC reciprocated this gesture by slashing the fine by 25 percent to $3.9 billion (N780 billion). Unfortunately, instead of the MTN paying the reduced penalty, it played the Oliver Twist by pontificating on how outrageous the new $3.9 billion still was and pressing for a further downward trimming of the bill. The telecom company also resorted to subjecting the fine to comparisons and canvassing other payment options. This infuriated NCC, leading to its insistence on enforcing the sanction in line with Section 20 (1) of the Registration of Telephone Subscribers Regulation (2011), which prescribes a penalty of N200,000 for each unregistered but activated SIM card and against the fact that the Nigerian public had been at the receiving end of security challenges, like kidnap for ransom, financial scams and other heinous crimes facilitated by GSM phones. Consequently, NCC warned that MTN should pay up latest by last December 31 or be prepared for whatever consequences that would follow. From then, the drama has been revolving around efforts by Nigerian authorities to freeze MTN’s account in the country; the GSM operator’s resort to litigation to quash the fine; and unimpressive out-of-court settlement.
When the case came up before Justice Mohammed Idris of the Federal High Court, Lagos, last January 22, counsel to MTN (applicant/plaintiff), Chief Wole Olanipekun (SAN), told the court that the parties in dispute were already discussing how to amicably resolve the matter. Justice Idris then adjourned the matter to March 18, 2016 for report of settlement or hearing. The kernel of MTN’s argument in court is that NCC cannot assume all the functions of the state – making laws, prescribing penalties and imposing fines. It further claimed being denied its constitutional right of fair hearing before a court of competent jurisdiction; and that it was not found guilty of any offence that would warrant the hefty fine imposed on it by NCC. The last joker MTN pulled some days ago was its hiring of a former United States Attorney General, Mr. Eric Holder, now with a private law firm in the US, to help challenge the $3.9 billion fine or accelerate negotiations, a move widely interpreted as buttressing the flaunt of American vested interest in the case with a view to intimidating the Nigerian government and NCC. Curious analysts are also constructing a problem of conscience for the nation by exaggerating how outrageous the penalty on MTN is. Our position on matters bordering on the impunities of multinational companies operating in Nigeria, whether in the oil or other sectors, however, remains that the Nigerian government should desist from playing the fool or the ostrich game while multinationals rip off the country, ride roughshod on the nation and its laws; and perpetrate crimes in Nigeria they dare not contemplate in their home countries, except they were ready to pay dearly in return. MTN’s seeming contempt for the nation and its laws would better be appreciated with NCC’s claim last November that it fined Globacom N7.4 million; Etisalat N7 million; Airtel N3.8 million and MTN N102.2 million in August 2015 for their non-compliance with its SIM deactivation directive; and that all the telecoms operators, apart from MTN, paid the ‘small’ fines. This is unacceptable. We stand against any suggestion that will make such impunity fester the more. The FG and NCC should insist on using all legitimate means to make multinational firms comply with Nigerian laws. Best international business practice recommends no less.
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