MTN and a house out for blood by O'Femi Kolawole

For those who have followed the controversy concerning the fine slammed on MTN for failing to disconnect unregistered SIM cards by the Nigerian Communications Commission (NCC) very closely, they would most likely have assumed, and rightly so, that the announcement, few weeks back, that the telecoms company and the regulatory agency have reached an agreement after eight months of intense negotiations amidst tensions and suspicions, has finally brought an amicable settlement to the matter.


But it’s becoming obvious that the last may not have been heard on the issue with the National Assembly indicating it’s not interested in sheathing the sword and particularly the manner in which some of its members are showing they are seriously out for blood.

The House of Representatives, for instance, has said it is not pleased at the NCC’s reduction of the N1.04 trillion fine imposed on MTN to N330 billion which the telecoms company will now pay to the federal government within three years aside the fact that MTN will also list on the Nigerians Stock Exchange even as the company has pledged to abide by the corporate governance for Nigeria’s telecommunications industry.

On its part, the Senate, through its Committee on Communications, is also insisting that the country has been ripped off and wants clearer explanations concerning how the settlement was reached.

As I write this article, the upper chamber is insisting that the Abubukar Malami, the attorney-General and Minister of Justice, Shittu, the Minister of Communications, and the CBN Governor, Godwin Emefiele appear before it. Also wanted by the senate are the Executive Vice Chairman/CEO of the NCC, the Accountant General of the Federation and MTN’s CEO. It wants each one of them to come explain their roles in the final settlement.

Just about a week ago, Senator Gilbert Nnaji, Chairman of the Senate Committee on Communications, in a letter titled Re: Settlement between NCC and MTN over finedated June 15, 2016 and addressed to all of the main actors, had expressed displeasure that out of a whopping N1.04 trillion, only N330 billion was eventually agreed upon. The chairman said the committee was saddened about the development more so when our country needs all the resources and capital infusion we can muster to bolster the economy.

Nnaji and his colleagues in the committee are equally angry that they were not carried along nor privy to the negotiation that led to the final settlement despite the fact that during the committee’s investigative meeting with all relevant parties to the matter on March 10, it was informed that the case was still in court and had been adjourned.

“It is our strong opinion that Nigeria has been short-changed in this whole process on account of the ridiculous payment plan coupled with the disparity in the exchange rate regime when the fine was imposed ab initio compared with the current prevailing exchange rate when it was agreed to cut the fine to N330 billion.”

And true, some of the issues raised by the committee have their merits. What is also clear is that there wasn’t tight coordination between all the agencies and arms of government involved in the matter before conclusions were reached, signed and sealed and then communicated to Nigerians.

For example, while the Ministry of Communication confirmed the initial N50 billion earlier paid by MTN, the NCC first said it wasn’t in the know of it before it later confirmed the payment. Of course, it subsequently emerged that the Justice Minister was the one who had brokered the deal as a condition to MTN before the federal government would give the company’s negotiating team an audience. But sense and wisdom demanded that the Justice Minister would have briefed his Communications colleague and the NCC also carried along so that everyone would be on the same page on the matter.

However, I believe the explanation offered by Minister Shittu at a ceremony in Ibadan over the weekend that “although MTN has violated the law and the country has put in the necessary penalty, we must put a halt to the limitless crisis so that we don’t discourage foreign investors”, makes sense in Nigeria’s overall interest in the long term and the matter should be allowed to settle without unnecessary prolongations and unhelpful distractions. Foreign investments are potent means of bringing about development and creating wealth in any country. Our country needs more of these. This is a fact.

Equally reasonable is the justification given by the Attorney-General and Minister of Justice who said the decision was concluded at the executive level and a definite position for the country taken at the Federal Executive Council before it was communicated to MTN through the NCC. And sincerely, no reasonable person cuts off his nose to spite his face. Again, N330 billion, as a fine, is no chicken feed in Nigeria or anywhere for that matter. This is the truth!

Overall, it is clear MTN’s negotiating team was able to get out a settlement that many believe is very fair to the company. However, MTN must not think it can use its bigness to continue to do things the same old way and expect to hold the hands of the Nigerian government from serious sanctions against it in future. It will be making a very grave mistake. That is why I believe the senators and house of reps members, much as they may have some reservations about the settlement, should now allow this matter to rest in Nigeria’s overall interest once and for all.

Like I had written in this column few months back in an article titled, “NCC Fine: Now that MTN’s in Court”, insisting on the initial fine, despite its earlier reduction to N780 billion in the course of negotiations, would have been a threat to over 500,000 direct and indirect jobs connected to the telecoms company including millions of Nigerians earning their living from MTN’s value chain. Additionally, with the telecoms industry contributing no less than 10 per cent to Nigeria’s rebased economy, and MTN alone having about 48per cent of the market share, the fine, unparalleled in the history of our country and indeed in the whole of Africa, would have further complicated our fragile economy as international investors would be very wary of doing business here.

Aside this, among businesses operating in Nigeria today, MTN has been able to demonstrate that it stands apart in its corporate social responsibility impact and initiatives. Its various interventions through the MTN Foundation especially in the areas of Health, Education and Economic Empowerment, bear eloquent testimony to this fact. I believe other telcos and businesses in the country have a lot to learn from the brand.

In all of these, however, there are important lessons learnt. MTN or any other operator can no longer break rules and expect to get away with it. This won’t happen any longer. The regulatory arm of government will be waiting and ready with the appropriate sanctions. Then, there will be no mercy although regulators themselves must not be arbitrary in their decisions. And Nigerians can also be furthered assured, that with the intense competition among MTN and other operators like Glo, Airtel and Etisalat, everything in the sector can only work together for their good.

In conclusion, Nigeria has been particularly good to South African brands like MTN, DSTV and Shoprite. The Buhari Presidency must now work to ensure that big Nigerian-owned businesses are also able to do business and thrive in South Africa and provided a very conducive environment to operate in by the country’s authorities. Like good brothers, we’ve been very nice to our South African siblings since the apartheid era and over the years. It’s not wrong to be duly acknowledged and appropriately rewarded for this as one good turn deserves another.
Meanwhile, to MTN, I’ll give a free counsel:Go and sin no more, lest a worse calamity than this befall you.

All is well that ends well.

Kolawole is an award-winning Nigerian journalist and author. You can reach him viaofemikolawole@gmail.com. SMS Only: 08033983499. Twitter: @ofemigan