By Abimbola Fashakin, Lagos
Telecoms giant, MTN Group has agreed to pay a whooping N330 billion ($1.7 billion) fine to the Federal Government.
The decision to pay the sum which forms one-third of the original penalty will afford the telecoms the opportunity of escaping the hammer of the Nigeria Communications Commission (NCC) and thus removed a major uncertainty hanging over the phone carrierâ€™s operations in the country.
This is coming just as the company has also commenced what it termed â€˜immediate stepsâ€™ to list the companyâ€™s shares in the nationâ€™s capital market.
MTN made these knownÂ on FridayÂ in a statement issued by the parent company in Johannesburg, South AfricaÂ on Friday, saying the fine will be paid over three years.
The agreement ends eight months of start-and-stop negotiations with Nigerian officials over how to settle the fine, which was levied for being slow to disconnect customers unregistered in the country.
Chairman Phuthuma Nhleko came out of retirement to oversee the process, hiring former U.S. Attorney General Eric Holder to lead negotiations.
The deal â€œis the best outcome for the company,â€ Nhleko said in the statement. â€œThe relationship between MTN, the Nigerian government and the Nigerian Communications Commission has been restored and strengthened.â€
MTNâ€™s battle with Nigerian authorities over payment of the fine had cost the company its status as Africaâ€™s highest valued telecommunications operator, lowering the stock price by one-third amid a lack of clarity about the negotiations and posturing by Nigerian politicians.
The government originally issued a $5.2 billion penalty and later lowered it to $3.9 billion.
MTN was hit with the penalty after failing to comply on time with an order to disconnect 5.1 million customers deemed by the regulator to be unregistered in Africaâ€™s most populous country.
Nigeria has sought to cut off service to some users as they fight crime and in a country with poor identity records.
The insurgent group Boko Haramâ€™s campaign to establish its version of Islamic law in Nigeria has left thousands of people dead since 2009.
MTN engaged Holder, a partner at law firm Covington & Burling LLP, to challenge the penalty. Holder, the U.S. attorney general from 2009 to 2015, now advises clients on litigation matters.
Sifiso Dabengwa resigned as CEO of MTN in November to take responsibility for the dispute.