Less than 24 hours after the Senate Committee on Senate Committee on Banking, Insurance and other Financial Institutions expressed concerns about the discussions between the CBN and MTN Nigeria over the $8.1 billion imposed fines on telecom operator over regulatory infractions, there are indications that the government may accept $800 million as final settlement on the fines.
A news report by Bloomberg on Thursday quoted reliable sources as confirming that the Federal Government, through its negotiator, the CBN, would accept $800 million from the telco following weeks of negotiations.
If the settlement is reached, this would be the second time within three years that the telecom operator was being sanctioned for breach of regulations as they affect its operations in the country. paying huge sums to Nigeria in fines.
It would be recalled that the telco paid to the Federal Government about $1 billion as penalty for missing the deadline to disconnect unregistered subscribers in August 2016.
According to Bloomberg, the sanction led to MTN’s first-ever reported loss in 2016.
On Wednesday, the Senate Committee on Banking, Insurance and other Financial Institutions had expressed its intention to seek clarifications from the CBN on its ongoing negotiations between it and MTN Nigeria over the $8.1 billion fine imposed on the telecom operator.
The Committee said that the clarification was necessitated by the rumoured negotiation by the Federal Government, through the CBN, to reduce the $8.1 billion fine imposed on the network operator to a paltry $800 million.
While the leadership of the Senate was not particularly opposed to whatever negotiations government may have with the MTN on the sanction but would want to be formally informed on why the reduction became necessary.
Speaking on the matter, the Committee’s chairman, Sen. Rafiu Ibrahim, accused the CBN of failing to implement Senate resolutions earlier communicated to it before conducting another investigation into the alleged infraction by MTN.
The lawmaker said that the committee would immediately request for the apex bank report on the ongoing negotiations, adding that the only way Nigerians would know what transpired on the $8.1 billion fine is through a detailed report.
He said: “The last time we heard about this issue was when we had a little retreat last two weeks in Lagos, where CBN did the presentation of their biannual activities to the Senate Committee.
We took them up on the issue, and CBN told us how they did the investigation. We’re taking them up based on the fact that we have investigated and we saw what happened.
“All our resolutions were passed to them, and they did not even implement the resolutions before saying they’re going into another investigation. They said their investigation was based on a petition from a law firm and their stand was that the penalty was correct.
“So, from the information you have now, it will be ridiculous for them to say they’re bringing the penalty down from $8.1 billion to about $800 million. That will be ridiculous for CBN. What they told us that day was that they were going to give us the report from when they started the investigation to date and their discussion with MTN.
“So, if that’s the case, they have to answer to Nigerians through us in the Senate Committee to the legislature, what informed the penalty of $8.1 billion?” And what information have they now gathered that informed the reduction to $800m. I don’t know what percentage of reduction you can call that. Is it not up to 1000?”, the lawmaker queried.
