N780bn fine: MTN drags NCC to court

Despite having the initial N1.04 fine reduced by 25 per cent to N780 billion, telecommunications company MTN Nigeria is still not satisfied with the outcome of the issue, and has approached a Federal High Court in Lagos to quash the sanction imposed on it by the Nigerian Communications Commission (NCC).

NCC had slammed the fine against the South African company in October for allegedly failing to disconnect unregistered subscribers, with a December 31 payment deadline.
But a former president of the Nigerian Bar Association (NBA) Chief Wole Olanipekun (SAN) on behalf of MTN, is challenging regulator’s powers to impose the fine.
It argued that NCC, being a regulator, could not assume all the functions of the state.

MTN said the commission could not make the regulation, prescribe the penalty and impose the fine payable to it and not to the Federal Government.

Read also: How MTN secured $3.4b fine

The firm alleged that it was not afforded its constitutional right to fair hearing before a court of competent jurisdiction.
Besides, MTN said it had not been found guilty of any offence that would warrant it to pay such a fine.

It contended that the sanction imposed on it by NCC was within 24 hours of its written submission on the disconnection exercise and the impractical nature of the NCC deadline.
According to MTN, the deadline of seven days to disconnect 5.2 million subscribers was grossly inadequate and impracticable.

It accused the regulatory agency of acting as a legislator, executor, accuser, prosecutor, judge and beneficiary of the penalty.
Attorney-General of the Federation (AGF) Abubakar Malami (SAN) is also a defendant in the action.

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