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Tag: NCC

  • NCC faults mobile giant’s suit

    NCC faults mobile giant’s suit

    •Urges court to decline jurisdiction

    The Nigerian Communications Commission (NCC) has faulted the  competence of the suit filed by MTN Nigeria Communications Limited challenging the N1.04 trillion fine slammed on it (MTN) for allegedly breaching NCC’s statutory and regulatory directives.

    MTN sued NCC before the Federal High Court, Lagos and sought to void NCC’s decision to penalise it for failing to, among others, register about 5.2 million subscribers within a given deadline.

    NCC, in a motion on notice, prepared on its behalf by a group of lawyers including Ahmed Raji (SAN) and Mahmud Magaji (SAN), queried the competence of the suit, the court’s jurisdiction to hear it and argued that MTN failed to ensure proper service of court documents on its.

    It is the NCC’s contention that the suit was wrongly instituted in the Lagos division of the Federal High Court and that MTN, in serving to court processes on it, failed to comply with the provision of section 143 of the NCC Act which stipulates that all court processes are to be served at the principal office of NCC.

    NCC argued that  it was not only wrong  for MTN to have served court processes in relation to the suit on its Lagos office, the telecommunication company initiated the suit at the wrong venue by going before the Federal High Court, Lagos, which lacks the territorial jurisdiction to determine the dispute.

    It stated, in a supporting affidavit, that not only did all facts relating to the dispute occur in Abuja, both defendants in the suit – NCC and the Attorney general of the Federation (AGF) – have their principal offices in Abuja.

    NCC therefore prayed the court to set aside the purported service of all processes in the case on it. In the alternative, it wants the court to either decline jurisdiction over the case or transfer it to its Abuja division.

    MTN is, by the suit, challenging NCC’s powers of to impose fine even as a regulator.

    It is MTN’s contention that NCC, being a regulator, cannot assume all the functions of the state on its own, considering the fact that it made the regulation, prescribed the penalty and imposed the fine payable to the commission and not the Federal Government.

    It argued that by imposing a fine on it, the commission was already usurping “the exclusive legislative powers of the National Assembly, as well as the judicial powers of the courts established under the constitution.”

    MTN stated that it was not afforded its constitutional right of fair hearing before a court of competent jurisdiction and insisted that it had not been found guilty of any offence to warrant the fine of $3.9bn imposed on it.

    It wants the court to among others,  determine whether NCC can act pursuant to Section 70 of the NCC Act to impose a fine on it in view of the provisions of sections 1 (3), 4 and 6 of the 1999 Constitution.

  • N1.04tr fine: NCC faults MTN’s suit

    N1.04tr fine: NCC faults MTN’s suit

    … Commission urges court to decline jurisdiction

    The Nigerian Communications Commission (NCC) has faulted the competence of the suit filed by MTN Nigeria Communications‎ Limited challenging the N1.04 trillion fine slammed on it (MTN) for allegedly breaching NCC’s statutory and regulatory directives.

    MTN had sued NCC before the Federal High Court, Lagos and sought to void NCC’s decision to penalize it for failing to among others, register about 5.2 million subscribers within a given deadline.

    NCC, in a motion on notice, prepared on its behalf by a group of lawyers including Ahmed Raji (SAN) and Mahmud Magaji (SAN), queried the competence of the suit, the court’s jurisdiction to hear it and argued that MTN failed to ensure proper service of court documents on its.

    It is the NCC’s contention that the suit was wrongly instituted in the Lagos division of the Federal High Court and that MTN, in serving to court processes on it, failed to comply with the provision of section 143 of the NCC Act which stipulates that all court processes are to be served at the principal office of NCC.

    NCC argued that  it was not only wrong  for MTN to have served court processes in relation to the suit on its Lagos office, the telecommunication company initiated the suit at the wrong venue by going before the Federal High Court, Lagos, which lacked the territorial jurisdiction to determine the dispute.

    It stated, in a supporting affidavit, that not only did all facts relating to the dispute occur in Abuja, both defendants in the suit – NCC and the Attorney general of the Federation (AGF) – have their principal offices in Abuja.

    NCC therefore prayed the court to set aside the purported service of all processes in the case on it. In the alternative, it wants the court to either decline jurisdiction over the case or transfer it to its Abuja division.

    MTN is, by the suit, challenging NCC’s powers of to impose fine even as a regulator.

    It is MTN’s contention that NCC, being a regulator, cannot assume all the functions of the state on its own, considering the fact that they made the regulation, prescribed the penalty and imposed the fine, payable to the commission and not the Federal Government.

    It argued that by imposing a fine on it, the commission was already usurping “the exclusive legislative powers of the National Assembly, as well as the judicial powers of the courts established under the constitution.”

    MTN stated that it was not afforded its constitutional right of fair hearing before a court of competent jurisdiction and insisted that it had not been found guilty of any offence to warrant the fine of $3.9bn imposed on it.

    It wants the court to among others,  determine whether NCC can act pursuant to Section 70 of the NCC Act to impose a fine on it in view of the provisions of sections 1 (3), 4 and 6 of the 1999 Constitution.

  • Nigeria ‘to decide’ on MTN’s fine after court case

    Nigerian authorities will wait for the outcome of a court case filed by South African telecoms firm MTN before deciding on whether to enforce a $3.9 billion fine, a spokesman for the telecommunications ministry said.

    The ministry spokesman contradicted a source in the Nigerian Communications Commission (NCC), who earlier said “appropriate action” would be taken against MTN if it failed to pay the fine by a December 31 deadline for failing to disconnect users with unregistered SIM cards.

    Nigeria has been trying to halt the widespread use of unregistered SIM cards amid worries these are being used for criminal activity, including by Boko Haram sect.

    The NCC slapped a $5.2 billion fine on MTN in October but after weeks of negotiations reduced it by 25 percent this month, setting a deadline for December 31, Reuters reported.

    However, the operator was still not prepared to pay the reduced fine and said last week it would challenge the penalty in a Lagos court.

    “The federal government, NCC (regulator) or any government agent will not do anything at the expiration of the December 31 deadline,” said Victor Oluwadamilare, the ministry’s media assistant.

    “Now that they (MTN) have gone to court we will await the outcome of the case,” he added. “This is a government that believes in the rule of law.”

    The ministry appears to have taken a softer stance than the regulator on the dispute.

    The minister Adebayo Shittu told Reuters last month Nigeria did not want MTN to “to die” from the fine.

  • Why we took NCC to court, by MTN

    Why we took NCC to court, by MTN

    TELECOMMUNICATION giant MTN yesterday said it took the Nigerian Communications Commission (NCC) to court over the N780billion fine imposed on it over subscriber identity (SIM) card registration infractions because of its belief in the long term sustainability of its business in the country.

    Reaffirming its long-term commitment to its stakeholders, including 63 million customers, employees, vendors, partners and consultants in the country, it said the decision to seek judicial determination of the fine was also in line with due process and deference to the rule of law.

    In a statement, the Human Resources & Corporate Services Executive, Amina Oyagbola, said that the N780 billion fine has potential dire consequences for the company and stakeholders, as well as the entire Nigerian telecommunications industry.

    She said being a significant contributor in Nigeria, MTN has an obligation to protect the interests of its ecosystem of millions of Nigerians who are directly and indirectly affected by its business operations and continuity.

    The decision to seek judicial determination was reached after careful consideration of all factors, including extensive attempts at a sustainable resolution, she said.

    “It is important to state that seeking judicial determination was a last resort. We hold the Nigerian government, its national objectives, laws and regulations in the highest regard.”

    She said notwithstanding the action, the company will continue to engage with the authorities in an effort to reach an amicable resolution in the interest of all stakeholders.

    Through its operations, she added, MTN has grown to become the largest gross domestic product (GDP) contributor in the non-oil sector, at approximately 4.5 per cent. “We are grateful for the patronage, partnership, determination and hard work of everyone who has made it possible for MTN to become what we are today.  We recognise the magnitude of the responsibility we bear and are committed to supporting our key stakeholders to enable continued sustainable economic development and vibrant, connected communities through ICT,” she said.

    MTN remains committed to being a partner in national development and an investment ambassador for Nigeria, Ms. Oyagbola said.

  • MTN, lawyer urge court to quash NCC’s fine  

    MTN, lawyer urge court to quash NCC’s fine  

    MTN Nigeria has urged the Federal High Court, Lagos to quash the $3.9 billion sanction imposed on it by the Nigerian Communications Commission (NCC).

    The action came as a lawyer, Abubakar Sani, in a separate suit, also asked a Federal High Court, Abuja to declare the fine unlawful.

    NCC had in October sanctioned the company for allegedly failing to disconnect unregistered subscribers.

    The initial fine of $5.2 billion was reduced by 25 per cent to $3.9 billion earlier this month, with a December 31 payment deadline.

    But MTN, through its lawyers led by a former Nigerian Bar Association (NBA) President Chief Wole Olanipekun (SAN), is challenging NCC’s powers to impose the fine.

    It argued that NCC, being a regulator, could not assume all the functions of the state.

    MTN said the commission could not make the regulation, prescribe the penalty and impose the fine payable to it and not to the Federal Government.

    The firm alleged that it was not afforded its constitutional right to fair hearing before a court of competent jurisdiction.

    Besides, MTN said it had not been found guilty of any offence that would warrant it to pay such a fine.

    It contended that the sanction imposed on it by NCC was within 24 hours of its written submission on the disconnection exercise and the impractical nature of the NCC deadline.

    According to MTN, the deadline of seven days to disconnect 5.2 million subscribers was grossly inadequate and impracticable.

    The telecoms company said the deadline was unfair and ran contrary to the requirement to give adequate notice to the subscribers to update their records.

    It accused the regulatory agency of acting as a legislator, executor, accuser, prosecutor, judge and beneficiary of the penalty.

    MTN said NCC’s N200,000 per SIM sanction was excessive, being the highest fine ever imposed on a telecommunications company in the world.

    The company wondered if the fine is truly commensurate with the purported breach and if it would not frustrate its business in Nigeria.

    Attorney-General of the Federation (AGF) Abubakar Malami (SAN) is also a defendant in the action.

    MTN urged the court to determine whether having regard to Sections 1 (3), 4 and 6 of the 1999 Constitution (as amended), the regulatory agency can validly enforce Section 70 of the NCC Act in a manner that encroaches on the exclusive legislative powers of the National Assembly, as well as the judicial powers of the courts established under the Constitution.

    It said having regard to the express tenor of sections 1 (2), 4 and 6 of the Constitution when read together with Section 70 of the NCC Act, whether the commission’s promulgation of regulations 11, 19 and 20 of its Act (Registration of Telephone Subscribers) Regulations 2011 is not ultra vires its subsidiary rule-making powers.

    It also wants the court to determine whether the regulations did not amount to an encroachment on the National Assembly’s legislative powers, as well as the courts’ judicial powers.

    Sani, in his suit, among others, argued that it was illegal for NCC to impose a fine of N200,000 per contravention on any of the four mobile telecommunication companies operating in the country for any breach of its regulations.

    The suit has as defendants NCC, MTN, Emerging Markets Telecommunications Services Limited (Etisalat Nigeria Limited), Globacom Limited and Airtel Networks Limited.

    He urged the court to order NCC to give account of and refund the money it had collected from the four telecommunication companies as fines/penalties in excess of the N100 per contravention for any alleged contravention of the NCC (Regulation of Telephone Subscribers) Regulations 2011.

    Sani, in a supporting affidavit, stated that the NCC had on two occasions imposed fines on the four mobile telecommunication companies for contravening some provisions of the Regulations 2011, under which it imposes N200,000 per contravention.

    He gave an instance in April 2013 when the telecommunication companies were made to pay a cumulative fine of N53.8 million (MTN, N29.2 million; Etisalat, N5 million; Globacom, N11 million and Airtel, N8.6 million).

    He also cited the N1.04 trillion fine NCC imposed on MTN for allegedly refusing to deactivate 5.2 million unregistered/irregularly registered subscribers.

    Relying on Section 12(1)(c)(ii) of the Interpretation Act, Sani argued that the NCC Regulations 2011, being a subsidiary legislation, enacted by the NCC pursuant to Section 70(1) of the Nigerian Communications Act 2003, cannot empower NCC to impose fines in excess of N100.

  • Reps shut out NCC, NDDC over non-remitance of revenue

    Reps shut out NCC, NDDC over non-remitance of revenue

    Officials of the Nigerian Communications Commission (NCC) and the Niger Delta Development Commission (NDDC) were yesterday barred from the House of Representatives ad hoc committee investigating alleged  fraud in the remmitance of non-oil revenue.

    The officials of the two agencies were walked out due to the non-appearance of their chief executives.

    The NCC was represented at the hearing by its officials led by the Director of Public Affairs, Tony Ojobo, while the NDDC was represented by Executive Director of Finance, Henry Ogiri.

    Other agencies at the public hearing included the Nigerian Television Authority (NTA), Federal Radio Corporation of Nigeria (FRCN) and the Nigerian Communications  Satelite (NigComSat) Ltd.

    The action of the committee was coming on the heels of a challenge thrown to House committees by its Speaker, Yakubu Dogara at a retreat earlier yesterday  that the House is set to drive the change agenda of the government.

    The panel, chaired by Chike Okafor (APC, Imo) said the non-appearance of the Executive Vice Chairman of NCC, Prof Umar Garba Dambatta and NDDC Managing Director, Bassey Dan-Abia was against the rules of the House.

    According to him, engaging officials who cannot take responsibility for the actions of their agencies at the hearing would not serve the purpose of the investigation.

    Okafor however said Dambatta and Dan-Abia must appear before the panel to respond to questions relating to their organisations on a date to be announced by the panel.

    He said: “We have to engage those that would not set us back because the mandate of the committee is critical to the economic realities on ground in this country.

    “With a monolithic economy and the fact that we dont have control of global oil market, with Organisation of  Petroleum Exporting Countries (OPEC) setting its benchmark at $35, while we set ours at $38, the implication is that we are going to  have issues with our budget proposal.

    “That is why we have to look into non-oil revenue generation and we are looking at the past four years.

    “We need to know what has  transpired in that period concerning  statutory and other sources of funds, interest paid on deposit accounts, banks  used by the agencies concerned   in terms of kinds of accounts, before Treasury Single Account  (TSA), investment portfolios, offshore banks among others requests.

    “If we are looking at all of these, we must have officers who can take responsibility for whatever is given to the committee.”

    The submisions of NTA, FRCN and NigComSat were however taken by the Committee.

  • Reps walk out NCC, NDDC over non-remitance of non-oil revenue 

    Reps walk out NCC, NDDC over non-remitance of non-oil revenue 

    Officials of the Nigerian Communications Commission (NCC) and the Niger Delta Development Commission (NDDC) were barred from a House of Representatives ad hoc committee hearing investigating alleged fraud in the remittance of generated non-oil revenue.

    The officials of the two agencies were walked out due to the non-appearance of their chief executives.

    The NCC was represented at the hearing by some officials led by the Director of Public Affairs, Anthony Ojobo, while the NDDC was represented by Executive Director of Finance, Henry Ogiri.

    Other agencies at the public hearing included the Nigerian Television Authority (NTA), Federal Radio Corporation of Nigeria (FRCN) and the Nigerian Communications  Satelite (NigComSat)Ltd.

    The action of the committee was coming on the heels of a challenge thrown to House committees by the Speaker Yakubu Dogara at a retreat earlier Monday that the House is set to drive the change agenda of the government.

    The panel, chaired by Chike Okafor (APC, Imo) said the non-appearance of the Executive Vice Chairman of NCC Prof Umar Garba Dambatta and NDDC Managing Director Bassey Dan-Abia was against the rules of the House.

    According to him, engaging officials who cannot take responsibility for the actions of their agencies at the hearing would not serve the purpose of the investigation.

    Okafor however said Dambatta and Dan-Abia must appear before the panel to respond to questions relating to their organizations on a date to be announced by the panel.

    “We have to engage those that would not set us back because the mandate of the committee is critical to the economic realities on ground in this country.

    “With a monolithic economy and the fact that we don’t have control of global oil market, with (Organization of Petroleum Exporting Countries (OPEC) setting its benchmark at $35, while we set ours at $38, the implication is that we are going to have issues with our budget proposal.

    “That is why we have to look into non-oil revenue generation and we are looking at the past four years.

    “We need to know what has transpired in that period concerning statutory and other sources of funds, interest paid on deposit accounts, banks  used by the agencies concerned   in terms of kinds of accounts, before Treasury Single Account  (TSA), investment portfolios, offshore banks among others requests.

    “If we are looking at all of these, we must have officers who can take responsibility for whatever is given to the committee.”

    The submisions of NTA, FRCN and NigComSat were however taken by the Committee.

  • NCC raises record fine against MTN by $500 million

    NCC raises record fine against MTN by $500 million

    The Nigeria Communications Commission (NCC) yesterday  increased the fine against MTN to $3.9 billion 24 hours after reducing its initial penalty by 35% to $3.4 billion from the original $5.1 billion.

    “There was a typo,” Tony Ojobo, NCC spokesman,  told Bloomberg.

    “The reduction should have been 25 percent. We saw the mistake and had to fix it,” he said.

    On Thursday  MTN received a note from the regulator stipulating that the hefty penalty imposed on them in October will be cut by a third. But the company said  yesterday  it received a new set of instructions raising the fine by $500 million, with the deadline still scheduled for the end of this  month.

    “The second letter, which was stated to supersede the first letter, informed the company that the fine had actually been reduced by 25%,” MTN said in a statement. “Neither the first letter nor the second letter sets out any details on how the reduction was determined.”

    The company’s share price opened almost 5% down at the Johannesburg Stock Exchange after the announcement. This week alone has seen MTN lose 8% of its share price, down around 40% so far this year.

    Bloomberg    also reported yesterday  that  sources inside MTN suggested that the South African-based mobile carrier would seek further reduction of the revised penalty announced only for the opposite to happen.

    Thus far, the company has been non-committal about whether it will meet NCC’s previous and new terms. “The executive chairman Phuthuma Nhleko will immediately and urgently re-engage with the Nigerian Authorities before responding formally,” MTN  a statement on Thursday.

    In October, the NCC  slammed MTN with a $5.2 billion penalty after the company  ignored an edict to disconnect unregistered SIM cards from its networks. The fall out since then has been enormous. MTN has lost over $5 billion in market value. On top of that its group CEO Sifiso Dabengwa and its Nigeria head Michael Ikpoki have had to resign over the issue.

  • NCC, Ebonyi train 1000 youths in ICT

    NCC, Ebonyi train 1000 youths in ICT

    The Nigerian Communications Commission (NCC) and Ebonyi State Government have trained over 1000 youths of the state in Information Communications Technology (ICT).

    The training programme which held at the Akanu Ibiam International Conference Centre was organised by the Global Youths Awareness and Development Initiative (GYADI), a non-governmental organisation.

    The Executive Vice Chairman of the commission, Professor Umar Dantata at the event stressed the need for youths to be formally trained in ICT to enable them play active role in the emerging digital economy.

    Prof. Dantata said  that countries such as China, Singapore and Germany are recording high human development index and appreciable growth in gross domestic product as a result of unlimited access to Information Communications Technology provided to their citizens.

    Represented by a Deputy Director in the Commission, Mr Austin Odo, the Vice Chairman stressed that if Nigeria would join notable sustainable economies in the world there was the need for government at all levels to invest aggressively in ICT development.

    The President of the GYADI Prince Ejighionwu Ebei who described it as first of its kind in the state said it was packaged as capacity programme to encourage ICT proficiency literacy among the Ebonyi youths.

    “The youths who are the most valuabe human resources, the most agile and a critical demographic group of the nation needs to be incorporated in all developmental facets that will trigger sustainable national development,” he said.

    He noted that the training will create job opportunities for the teaming unemployed youths and improved Internally Generated Revenue of the state with accelerated increase in the Gross Domestic Products of the state.

    Earlier, the Special Adviser to Governor Umahi on ICT, Prince Aja Nwabueze said the state government had partnered with federal government agencies including NCC on ICT.

    Prince Ajah explained that the participants would be trained on web design, networking, internet marketing and Graphic design.

    He disclosed that the participants were carefully selected from the thirteen local government areas of the state.

    Governor David Umahi represented by the Secretary to the State Government, Professor Bernard Odo while declaring the event open announced plans by his administration to phase out blackboard in schools for e-learning facilities as part of a road map for ICT development in the state.

    Some of the participants appreciated the Nigerian Communications Commission and the state government for organizing the summit but called for the provision of free internet services in some public places.

    About one thousand youths participated in the summit which was the first of its kind in the state.

    The theme of the summit was refocusing talented Ebonyi youths for sustainable national development in training and capacity building through ICT.

  • NCC cuts MTN fine to $3.4bn

    The Nigerian Communications Commission has cut a fine imposed on MTN Group by more than a third to $3.4 billion and gave the South African mobile phone operator until the end of the year to pay it, the company said on Thursday.

    The NCC handed Africa’s biggest mobile phone company the penalty in October after MTN failed to cut off users with unregistered SIM cards from its network, Reuters reported.

    Nigeria, MTN’s biggest market, has been pushing telecoms firms to verify the identity of subscribers amid worries unregistered SIM cards were being used for criminal activity in a country facing insurgency from the Boko Haram sect.

    The fine, originally $5.2 billion, prompted MTN to hold talks with the NCC over the past five weeks seeking a reduction.

    “After further engagements with the Nigerian authorities, the NCC has reduced the imposed fine,” Reuters quoted MTN as saying in a statement.

    The company, which makes about 37 percent of its sales from Nigeria, said it was considering the NCC’s decision.

    “Executive Chairman, Phuthuma Nhleko will immediately and urgently re-engage with the Nigerian authorities before responding formally,” it said.

    Nhleko, who took charge for up to six months after the abrupt resignation last month of Sifiso Dabengwa, led the company for nine years before stepping down in 2011.