Tuesday, May 13, 2025
27.5 C
Lagos

Why MTN Conceded Defeat in NCC Case

It is no longer news that MTN Nigeria conceded defeat in the legal action it instituted against the Nigerian Communications Commission [NCC] by seeking out-of-court settlement last Friday.

The telecom operator had filed a suit against the N780 billion fine imposed on it by NCC for failing to disconnect unregistered subscribers on its network. The fine was originally N1.O4 trillion.

The Scent of Defeat
Even as MTN Nigeria filed the legal action against the NCC last December in a media show of bravado, there was a scent of defeat in the air.

Not only was its action a Declaration of War against its own regulator, it was also a Declaration of War against the Federal Republic of Nigeria. Two key elements, indeed, that placed a heavy burden on the shoulders of MTN and its retinue of Senior Advocates of Nigeria [SANs] legal team.

A little dose of wisdom could have told the management of MTN that winning such a legal battle was difficult, if not virtually impossible.

The operator could have won the battle, but still lose the war. In another sense, they could have also won the case in the short term but still go ahead and lose in the medium and long term, as long as they continue to operate in the Nigerian market.

It was a no-win situation for MTN Nigeria!

What Did MTN Gain?
At the weekend, concerned stakeholders were asking one key question: what did MTN gain by going to court against the NCC and then making a u-turn for out-of court settlement just after two court appearances? The answer was unanimous: Nothing-Absolutely Nothing!

A stakeholder said: “MTN gained nothing by its ill-advised action of taking the NCC to court over the fine.

The case was absolutely unwinnable for MTN. Unfortunately, the management of MTN allowed themselves to be cajoled, bamboozled and fleeced by self-serving lawyers who were more interested in milking MTN for their private pocket than taking them to the Promised Land.

At the end, MTN literally went on their knees begging for out-of-court settlement, which l consider humiliating and embarrassing for a big industry brand like MTN.”

A senior executive in another telecom operator told Business Journal: “The court action by MTN was a foolish act. MTN was simply going to war against its own regulator-it was simply untenable.

Thank God they realised their foolishness on time and beat a retreat. As a fellow operator, l would appeal to the NCC to pardon them and find a way to settle the matter amicably for industry stability and growth.”

The Way Forward
The way forward is peaceful settlement of the issue and return to stable relationship between the two [NCC and MTN].

If the NCC reduced the fine from N1.O4 trillion to N78O billion without court action, we believe they can also reduce it further through negotiation and mutual co-operation.

The legal action was not in the best interest of MTN Nigeria, NCC or the telecom industry.

Accordingly, the out-of-court settlement sought by MTN is the best option and will pave the way for friendly and fruitful settlement of the matter.

spot_img
spot_img
spot_img

Hot this week

The Myth of Reflective Electricity Pricing in Nigeria

By Elvis Eromosele In Nigeria, few issues stir as much...

The Blood Profit of Nigerian Banks

By Michael Owhoko, Ph.D The astronomical rise in banks’ profit...

NAICOM Unveils Landmark Regulation for Leased Aircraft to Boost Aviation, Insurance Sectors

In a groundbreaking move, the National Insurance Commission (NAICOM)...

Sovereign Trust Insurance Adopts Continuous Manpower Dev for Optimal Performance

The MD/CEO, Olaotan Soyinka and members of the company’s...

NNPC, Dangote Strengthen Strategic Partnership, Reaffirm Commitment to Healthy Competition

Group CEO of NNPC Limited, Mr. Bashir Bayo Ojulari...

Topics

Brussels Attack: European Nations Tighten Airport Security

In response to terror attacks that have shaken the...

Women Entrepreneurs in Nigeria to Benefit from Directory of Business Support Organisations

Segun Awolowo Executive Secretary/CEO Nigerian Export Promotion Council (NEPC) A significant barrier...

Nigeria Ranks 127 in WEF 2016-2017 Global Competitiveness Report

Mauritius remains Africa’s most competitive nation (45th worldwide), World...

CBN:  Emefiele Resumed Duty on Jan 16 After Annual Leave

A statement by Mr. Osita Nwanisobi, Director, Corporate Communications...

Ecobank Digital Series: Remittance-Veritable Means to Alleviate Poverty in Nigeria

President, Nigerians in Diaspora Organisation (NIDO), New Jersey, Dr. Kazeem...

Facebook, CcHub Launch NG_Hub in Lagos – its First Hub Space in Africa

As part of its commitment and ongoing investment in...
spot_img

Related Articles

Popular Categories

spot_imgspot_img