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Lagos High Court gives parties two more months to settle dispute over $3.9 billion penalty.
The court battle between MTN Nigeria and local authorities over the US$3.9 billion fine imposed on the operator is due to begin on 18 March, it emerged on Friday.
In a stock exchange filing, South Africa-based MTN said that a judge in the Federal High Court in Lagos has given the parties until then to reach a settlement.
"If the parties are unable to reach a settlement the matter will then proceed on that date," the telco said.
MTN Nigeria was fined $5.2 billion in October by the Nigerian Communication Commission (NCC) for its failure to disconnect millions of unregistered SIM cards in accordance with the regulator’s timetable. The fine waslater reduced to $3.9 billion.
In December, MTN took legal action to challenge the fine, claiming that the NCC lacks the necessary authority to levy such a penalty.
The fine has caused some significant upheaval for MTN and its management.
Group CEO Sifiso Dabengwa resigned in early November, having tried and failed to resolve the situation. The company is being led by executive chairman Phuthuma Nhleko for the next six months.
MTN Nigeria CEO Michael Ikpoki and head of regulatory and corporate affairs Akinwale Goodluck also resigned. The company has also initiated a management restructuring in a bid to improve operational oversight.
