Jo`burg – South African telecom firm, MTN Group, on Wednesday, withdrew its legal action against Nigeria’s regulator over a 3.9 billion U.S. dollar fine.
MTN in a statement said it has also paid 250 million U.S. dollars towards a possible settlement.
The telecom company MTN, the Africa’s leading telecoms firm, was fined by the Nigerian Communications Commission NCC, in October 2015, for failing to disconnect unregistered SIM users, prompting weeks of lobbying to reduce the fine.
The original amount was based on fining the company 1,000 U.S. dollars for every unregistered SIM card in use.
“MTN Nigeria has today made an agreed without prejudice good faith payment of 50 Billion Naira ($251.3 million) to the Federal Government of Nigeria on the basis that this will be applied towards a settlement, where one is eventually, hopefully arrived at, the company said.
MTN, which makes 37 per cent of its sales in Nigeria, said it would withdraw its court challenge in an effort to reach an amicable settlement.
Reports say Shares in the company rose about 2 per cent by 11.58 GMT to 130.37 rand.
