Bank: MTN Nigeria fine boosting FG revenuesFrom OKORO CHINEDU in Lagos, Nigeria
LAGOS, (CAJ News) – THE resolution by the South African-headquartered MTN to pay more than N300 billion (US$1,5 billion) Nigeria slapped with is a major boost to the Federal Government’s resolve to broaden its income generation base from the trouble oil sector.
This is the analysis of a local financial firm after the mobile network operator announced it would settle the fine the Nigeria Communications Commission imposed late last year after the failure to register more than 5 million subscribers.
MTN will pay the fine in tranches over the next three years.
“We assume, however, that this fine, and those levied by other public bodies, will be paid to the FGN and not the relevant regulator,” noted First Bank of Nigeria.
“This would be consistent with the determination of the federal finance ministry to maximize its non-oil revenue collection,” said FBN.
This corroborates critics’ views the landmark fine was in line with the determination of the President of Muhammadu Buhari to diversify income sources following the upheavals in the oil industry.
FBN also recalled sentiment in the market the original fine of N1 trillion imposed in October would scare off investors.
“It would be fair to say that the FGN did not back off under the perceived pressure. We also recall that the size of the fine was based upon an established naira amount for each unregistered SIM card at a set point,” added FBN.
– CAJ News
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