MTN Nigeria may have heeded sound advice by withdrawing its law suit against the Nigerian Communications Commission, NCC, at the Federal High Court in Lagos and has instead opted to pay the fine slammed on it by the Nigerian telecom regulator. By Wednesday, the telco paid N50 billion to the industry regulator.

According to the MTN, the decision to withdraw the court case followed the renewed steps it took towards a negotiated settlement and to create a conducive atmosphere for further negotiations.

MTN had approached the court to challenge the powers of NCC to impose a hefty N1.04 trillion fine on the telecoms company, for contravening the directives of the NCC on SIM card deactivation. But going to court was considered by industry watchers as ill-advised especially after the MTN had admitted to the infraction for which it was sanctioned.

NCC reduced the fine by 25 percent, bringing it to N780 billion after several pleas by the MTN. The telco sought further downward review of the fine to which the Nigerian government said no. The Federal Government also refused to have further negotiations with the MTN and gave the company the option of withdrawing the case before opening up further discussions on the matter.

Ferdi Moolman, chief executive officer, MTN Nigeria said: “This is a most encouraging development. It demonstrates a willingness and sincerity by both parties to work together towards a positive outcome. “We are hopeful at this stage. Along with the authorities, it is clear that we are collectively committed to working towards a solution that is of mutual benefit to all parties. Our industry in Nigeria is an incredibly important example of the remarkable progress in information and communications technology, ICT, particularly as a much needed catalyst for socio economic growth and development at this time.”

He said that MTN Nigeria had paid N50 billion to the federal government as a gesture of good faith and commitment to continued efforts towards an amicable resolution.

Feelers from the regulator suggest that MTN could get further reprieve by way of reduction of the fine as negotiation continues.