N780bn fine: ‘Why N118.8bn was set aside’ – MTN

The management of telecommunications giant, MTN, has explained why it set aside N118.8bn (about $600 million) in its Group Financial results.

The company says the action is in line with the Principle of Prudence – which involves the making of plans to cater to unforeseen liabilities.

The funds set aside by MTN was widely believed to have been for the proposed settlement between the Nigerian government and the telecommunication company.

MTN Nigeria was last year, fined N780 billion by the Nigeria Communication Commission after failing to disconnect 5.2 million unregistered subscribers on its network.

So far, the company has paid about N50 billion to the Nigerian government.

However, discussions are still ongoing between both sides and stakeholders will be briefed when a settlement is reached between the telecom company and Nigerian authorities.

Speaking on the funds set aside, Executive Chairman, MTN Group, South Africa, Phuthuma Nhleko, on Thursday, stated that: “MTN’s auditors have required that the company make a provision in line with the International Financial Reporting Standards (IFRS). Discussions with the Nigerian authorities continue on the matter.”

Amina Oyagbola, an MTN executive, while speaking on the 2015 results, said: “MTN’s auditors have required that the company make a provision in line with the International Financial Reporting Standards (IFRS).”

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