BY Mayowa Tijani
Ben Murray Bruce, chairman senate committee on privatisation, has condemned the N1.04tr ($5.2bn) fine imposed on MTN Nigeria, saying it hurts Nigeria more than the telecommunications firm.
The fine imposed by the Nigerian Communications Commission (NCC) was referred to by the senator as “probably the most damaging action ever taken against Nigeria’s drive for Foreign Direct Investment”.
“MTN is not without fault and her actions and inactions are deserving of a strong rebuke from our authorities,” he said.
“However, the extent of the fine by the Nigerian Communications Commission is such that it sends a very wrong signal to foreign investors and gives them the impression that Nigeria is in a desperate financial situation due to the sudden drop in crude oil prices and wants to get alternative revenue by any means necessary.
“As a patriotic Nigerian I know this is not true. However, I know that perception is also reality.
“Foreign investors in Nigeria currently feel vulnerable and those contemplating investing in Nigeria are putting such plans on hold as their boards and management pause to take in the consequence of what just happened to MTN Nigeria.
“Many pundits point to the drop in the value of MTN shares in their home country and the temporary suspension in trading of such shares by the Johannesburg Stock Exchange.”
He called on the federal government to immediately and publicly take action to regain investors confidence in Nigeria.
“What is perhaps going unnoticed is that the action of the Nigerian Communications Commission has also caused a negative ripple effect on the shares of other foreign investors operating in Nigeria even though they have not flouted any of our laws and regulations.
“In the long run, the move hurts Nigeria more than it hurts MTN and may be described as cutting our nose in order to spite our face.
“I call on the Federal Government to immediately and publicly take steps to remedy the situation and restore investor confidence in Nigeria by resolving this impasse with tact with a view to our long term financial interests rather than our immediate interests.
MTN has sought to review the fine to as low as 20 percent of the original value from N1.04tr to N208bn.
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