Connect with us

Business

N330bn Fine: MTN Has Till May 31 to Pay N55bn Balance, Says NCC

Published

on

MTN seeks
  • N330bn Fine: MTN Has Till May 31 to Pay N55bn Balance, Says NCC

MTN Nigeria Communications Limited has till May 31 to pay the balance of N55bn out of the N330bn fine imposed on the telecommunications company by the Nigerian Communications Commission for SIM card registration infraction, the regulatory agency has said.

In a statement issued in Abuja on Tuesday, the regulatory agency clarified that MTN had paid a total of N275bn, leaving a balance of N55bn that must be paid by the end of May.

The statement said, “Following a negotiated reduction of the N1.04tn fine on MTN Nigeria to N330bn and in line with the staggered payment arrangement, MTN has, so far, paid N275bn to the Federal Government.

“Part of the fallout of the negotiated terms of payment of the fine is the listing of MTN on the Nigerian Stock Exchange and this is being done.

“What this means, according to the staggered arrangement, is that May 31, 2019 would be the deadline for the telecoms company to pay the sixth and final tranche of the balance of N55bn.”

It added, “After six months of negotiation and re-negotiation over the fine which led to the reduction to N330bn, it was agreed that MTN would pay a balance of N280bn in six tranches. This was in addition to the “goodwill” payment of N50bn earlier made by MTN to the government.

“Specifically, MTN began the payment structure with the payment of N30bn into NCC’s Treasury Single Account with the Central Bank of Nigeria, 30 days from the date of the agreement dated June 10 2016.

“Subsequently, MTN paid N30bn on March 31, 2017; N55bn on March 31, 2018; N55bn on December 31, 2018, and on March 31, it paid N55bn.

“The balance and final tranche of the payment will be paid by May 31 in line with the structure of the staggered payments agreed by MTN and the Nigerian government.”

The NCC. on October 20, 2015, imposed a fine of N1.04tn on MTN for infraction of the provision of the NCC Telephone Subscribers Registration Regulations 2011; for failure to disconnect 5.2 million improperly-registered Subscriber Identification Modules lines within the prescribed deadline, because the lines had economic activities on them without proper registration.

In an agreement reached by the parties involved in a way to avoid decision likely to cripple business interest of the operators the commission regulates, it was also agreed that MTN would apologise to Nigerians, subscribe to the compulsory observance of Code of Corporate Governance for telecoms industry as well as undertake immediate steps to ensure its listing on the NSE.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya

Continue Reading
Comments

Business

IATA Says Nigerian Airlines Loses $2.09bn in April and June

Published

on

iata

Airlines in Nigeria Loses $2.09 Billion in April and June

The International Air Transport Association (IATA) has estimated that Nigerian airlines lost about $2.09 billion in the month of April and June due to COVID-19 lockdown.

In its report titled ‘Quarantine measures threaten aviation restart in Africa and the Middle East,’ IATA stated that the aviation sector in Africa and the Middle East was the worst-hit.

According to the report, the aviation sector in the two regions provides over 8.6 million direct and indirect jobs.

While the report did not provide data for the month of May, it stated that the number of Nigerian passengers declined by 4.7 million in April and 5.32 million in June when compared with the same period of 2019.

Similarly, the report said 125,400 jobs were at risk in April and 139,500 jobs were at risk in the month of June.

Muhammad Albakri, the Regional Vice President for Africa and the Middle East, IATA, said governments in Africa and the Middle East must devise alternative methods to the current quarantine measures in place, saying the two regions have the highest number of government-imposed quarantine measures on arriving passengers.

He said, “It is critical that AME governments implement alternatives to quarantine measures. AME has the highest number of countries in the world with government-imposed quarantine measures on arriving passengers.

“The region is effectively in complete lockdown with the travel and tourism sector shuttered. This is detrimental in a region where 8.6 million people depend on aviation for their livelihoods.”

Continue Reading

Business

Oando Partners Oilserv to Build Ajaokuta-Kaduna Portion of AKK Project

Published

on

wale-tinubu

Oando, Oilserv to Construct Ajaokuta-Kaduna Portion of AKK Project

Oando Plc has partnered Oilserve Limited to construct a 303.4km linear pipeline system for the Ajaokuta to Kaduna portion of the $2.8 billion, 40 inch by 614km Ajaokuta-Kaduna-Kano Gas Pipeline Project, the AKK Pipeline.

According to a statement released by Oando through the Nigerian Stock Exchange, the construction of the AKK Pipeline Project approved in 2018 has commenced on Tuesday, June 30, 2020.

The statement reads “Oando PLC (referred to as “Oando” or the “the Company”), is pleased to announce to the Company’s attendance as a consortium partner at the flag-off ceremony for the construction of the $2.8billion, 40 inch by 614km Ajaokuta-Kaduna-Kano Gas Pipeline Project (the “AKK Pipeline”), by the President of the Federal Republic of Nigeria, Muhammadu Buhari GCFR on Tuesday, June 30, 2020.

“The AKK Pipeline Project, championed by two consortia comprising select indigenous and international companies commenced in 2013 with the announcement for tenders by the Nigerian National Petroleum Corporation (NNPC). In April 2018, the Company announced that following an extensive due diligence and bid process, the Oilserv-Oando PLC consortium was awarded the Engineering, Procurement, and Construction (EPC) mandate for segment 1, accounting for 40” by 303.4km linear pipeline system for the Ajaokuta to Kaduna portion of the AKK Pipeline Project by the NNPC.”

Speaking on the project, Jubril Adewale Tinubu, the Group Chief Executive, Oando PLC, said: “As a proudly Nigerian company, focused on driving indigenous participation we have always been proponents of public private partnership in accelerating the actualization of the nation’s goals.

“We have aspired to play an integral role in the building out of the National Gas Infrastructure and Pipeline Grid, as evidenced by our efforts in 2009, post the Nigerian Gas Masterplan when we participated in the unrealized Calabar- Ajaokuta- Abuja-Kano (CAAK) line.

“We have developed strategic partnerships with both private sector players and the NNPC in bringing sustainable solutions to spur the development of the country via our numerous gas development and distribution projects. We commend the NNPC for spearheading projects that will soften the headwinds occasioned by the global COVID-19 pandemic.

“We are proud to be active participants in driving the country’s industrialization and actualization of the Gas Master Plan which will undoubtedly create employment opportunities and ultimately generate as well as enhance value for the nation.”

Continue Reading

Business

Ethiopian Airlines Sustain Profitability Despite COVID-19

Published

on

Ethiopian AIrlines

Despite COVID-19, Ethiopian Airlines Stay Afloat

Africa’s largest airline, Ethiopian Airlines, manages to stay afloat during the peak of COVID-19 pandemic, Tewolde Gebre-Mariam, the airline CEO, stated.

The Chief Executive Officer said “We may not be as profitable as we expected but we registered some profit. The first half of the year was good and the cargo business has also done very well.”

While the airline is expected to be down by almost $1 billion in ticket sales in the current year ending July 7, it generated enough revenue from the transportation of goods to finance monthly fixed payments between $120 million to $150 million for loans, aircraft leases, salaries and rentals.

According to Gebre-Mariam, the airline is still flying about 40 charter repatriations per week despite other flights completely grounded.

Continue Reading
Advertisement
Advertisement
Advertisement
Advertisement

Trending