Court nullifies NBC code to fine broadcasters - ITREALMS

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A Federal High Court in Abuja today declared null and void the provisions of the Nigeria Broadcasting Code authorizing the National Broadcasting Commission (NBC) to impose fines on broadcast stations for alleged breaches of the Code as it ruled that administrative and regulatory bodies could not exercise judicial powers.


Delivering judgment in a suit instituted by Media Rights Agenda (MRA) against the NBC following the Commission’s imposition of fines of N5 million each on a television station and three pay TV platforms in 2022 for allegedly undermining Nigeria’s national security by broadcasting documentaries on banditry in Nigeria, Justice Rita Ofili-Ajumogobia held that the NBC not being a court of law, acted above its powers by imposing such fines.

The judge commended MRA for its legal challenge of the NBC’s action and issued an order of perpetual injunction restraining the Commission or anyone acting on its behalf from further imposing any fine on any media platform or broadcast station in Nigeria for any alleged offence committed under the Nigeria Broadcasting Code.

NCC, MTN reach truce with staggered payment, fine reduced to N330bn

ITRealms:

 ... MTN must list on Nigeria Stock Exchange

The Nigerian Communication Commission (NCC) and MTN Communication Nigeria have reached a truce to stagger its fine usage of non-registered Subscribers Identification Module (SIM) cards on MTN into five installments, reports ITRealms.

This is coming as the fine which was N1.04trillion has also been reduced to N330Billion, which must be paid-up with the next three years and enlist as soon as possible on the Nigeria Stock Exchange (NSE).

ITRealms gathered that after almost six months of negotiation and re-negotiation over the N1.04Trillion fine imposed on MTN, Nigeria by the Nigerian Communications Commission (NCC) a truce was agreed yesterday reducing the fine to N330Billion.

Confirming this, the Director, Public Affairs, Mr. Tony Ojobo told ITRealms that this amount includes the “goodwill” payment of N50Billion earlier made by MTN to the government.

He said, the balance of N280Billion will be made in six tranches in the following order. By the terms of agreement, MTN will pay N30Billion into NCC’s Treasury Single Account (TSA) with the Central Bank of Nigeria (CBN) 30 days from the date of the agreement dated June 10, 2016.

Other dates of payments include:

·  March 31, 2017          -       N30Billion;

·  March 31, 2018          -       N55Billion;

·  December 31, 2018  -       N55Billion;

·  March 31, 2019          -       N55Billion and the balance will be in

·  May 31, 2019              -       N55Billion

He explained that the agreement and resolutions were signed by Executive Vice Chairman (EVC) of NCC, Prof. Umar G. Danbatta, NCC Commission Secretary, Mr. Felix Adeoye, Chief Executive of MTN, Fredinand (Fredi) Moolman and MTN’s Company Secretary, Mrs. Uto Ukpanah, and witnessed by Mr. Tony Ojobo, NCC, Director, Public Affairs; Mr. Usman Malah, Chief of Staff to the EVC, NCC; Ms Helen Obi, Assistant Director, Legal, NCC and Ms. Amina Oyagbola, Corporate Executive, MTN.

It was also agreed that MTN shall undertake the followings:

·  Tender an apology in line with the apology previously tendered in correspondences relating to this matter to the Government of Nigeria and Nigerians within the one month of the execution of this Agreement;

·  Subscribe to the voluntary observance of the Code of Corporate Governance for the Telecoms Industry and would ensure compulsory compliance when the said Code is made mandatory for the telecommunications industry; and

·  Undertake to take immediate steps to ensure the listing of its shares on the Nigerian Stock Exchange as soon as commercially and legally possible after the date of execution of this Settlement Agreement.

Both parties agreed that these terms of settlement cannot be altered, varied, annulled or modified in any respect, except by writing duly executed by both parties; and the terms of settlement constitute all the terms and conditions of the settlement and supersede and replace any previous offers, representations and terms.

ITRealms recalled that the NCC on October 20, 2015, imposed a fine of N1.04Trillion on MTN for infraction of the provisions of the Nigerian Communication Commission (Registration of the telephone subscribers) Regulations, 2011; for failure to disconnect 5.1million improperly registered lines within the prescribed deadline.

However, ITRealms reports that in arriving at the agreement, the EVC said the decision was taken based on professionalism and global best practices, and in line with the NCC core value “to be fair, firm and forthright.”

The EVC was further quoted as saying that the Commission has always carried industry and stakeholders along in taking transparent regulatory actions, adding that at no point will the regulator do anything to jeopardise the business health of the entire sector.

“We were careful not to take decisions that were likely to cripple the business interest of the operators we regulate.  Besides, the downturn of the global economy is biting hard on everybody and every sector, so we must therefore be sensitive and flexible in our decisions”

This perhaps is one of the attractions of the global communities to the activities of the Commission through multiple awards recently.

A week ago, the NCC got the European Award for Best Practices by the European Society for Quality Research (ESQR) based in Switzerland.  The award ceremony involved over 63 Countries and global business giants like United Air-lines, Cathay Pacific airlines amongst others took place in Brussels, Belgium.

+Remmy 

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NCC explains lifting of regulatory services ban on MTN, urges compliance to NCA 2003

ITRealms:

The Nigerian Communications Commission (NCC) has adduced reasons why it lifted the regulatory services ban on MTN Nigeria and is not related to the fine imposed on network on October 20, 2015, reports ITRealms.

Director, Public Affairs at NCC, Mr. Tony Ojobo gave this explanation to ITRealms on Wednesday, saying that the Commission was very clear on the fine imposed on October 20, 2015 due to the failure to deactivate 5.2 million improperly registered Subscriber Identification Module (SIM) cards, which attracted a fine of N1.04Trillion. 

According to him, “these infractions predated this fine” stressing that the letter lifting suspension of regulatory services to MTN signed by Mr. Efosa Idehen, Head, Compliance, Monitoring/Enforcement and Mrs. Yetunde Akinloye, Head, Legal & Regulatory Services at NCC, specifically stated that the lifting of the suspension was as a result of several letters from MTN to the NCC requesting for the lifting.

NCC also stated in its letter that “we have reviewed MTN’s plea and also took into consideration the fact that MTN has abated all the infractions that gave rise to the suspension of regulatory services by the Commission.”

ITRealms gathered that the infractions included but not limited to tariffs and promotions by MTN in letters from NCC of May 4, 2015, May 9, 2015 and May 25, 2015 respectively to withdraw unapproved tariffs and promotions specifically MTN Trutalk, MTN Best II promotions, among others.

Ojobo further said that compliance checks on MTN showed as at the time of fine imposition that it had failed and deliberately refused to comply with the directives issued by the Commission, hence the fine was instituted.

NCC decried that instead, MTN continued to introduce additional promotions in utter disregard for the NCC directive, contrary to the Nigerian Communications Act (NCA) 2003 and Regulation 8(2) of the Enforcement Regulations 2005 and the relevant provision in the Guidelines for Advertisement and Promotion.

Further communication with MTN, NCC said as contained in letters dated June 19, 2015 and July 13, 2015 did not in any way discourage the operator from these infractions.

Consequently, in a meeting between the NCC and MTN management on October 5, 2015 it was resolved among others that:

·         NCC should compile and communicate list of all outstanding infractions to MTN stating what they need to do regarding each of the infractions;

·         MTN should resolve all the outstanding infractions within two weeks and revert to the Commission;

·         The Commission will monitor and validate the claims by MTN;

·        

 MTN must commit to settling all outstanding Annual Operating Levies (AOLs) debts from 2014 and MTN must pay all penalties resulting from these outstanding infractions.

Having reviewed MTN’s plea therefore and in consideration that the operator has abated all the infractions listed above, the NCC hereby lifts the suspension urging MTN “to ensure that it maintains good regulatory standing with the Commission at all times to avoid future occurrence”

In lifting the suspension of regulatory services to MTN, “the Commission expects total compliance with NCA, 2003, Regulations and the Terms and Conditions of Licences issued to MTN and will not hesitate to impose necessary sanctions where MTN flouts any provision of the foregoing regulatory instruments.”

 +ITRealms DSA +Remmy Nweke (ITRealms) +MTN South Africa +MTN Uganda 

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