The key
facts are that MTN and other telecommunications operators were ordered by the
NCC to deactivate subscribers with unregistered or incomplete SIM cards. The
deadline issued to complete this was August 11. The erring company failed
to meet this. It needs to be stated that the exercise to register all
mobile lines has been on for more than a year and, no
one would reasonably argue that there was not enough time to do
so. The deactivation of unregistered lines was even more urgent because
criminals – kidnappers, terrorists, armed robbers – used these lines to
communicate. So it was a matter of both public safety and interest, and also of
national security that MTN and other operators complied with the NCC
directive.
Whereas
other operators did to a large extent – Airtel had deactivated 2.3 million
lines, Globacom 3.5 million lines and Etisalat 3.3 million lines, MTN
reportedly kept active 5.1 million lines that should have been blocked.
Repeated warnings to the company by the NCC went largely unheeded.
Other alleged
wrongdoings were that MTN sent junior officers to a meeting called to discuss
national security implications of its action with senior officials of the NCC,
office of the National Security Adviser, and the Department of State Security
(DSS). On another occasion, its officials allegedly prevented an NCC
enforcement team from inspecting its equipment. These put together, the
regulator has no choice but invoke the full weight of condign punishment.
This is an exemplary measure that should warn others that in the telecoms
sector and beyond that doing business in Nigeria is no more business as usual.
And just as well.
It is
disappointing that MTN has, in this case betrayed its leadership rank in the
sector to breach the law where others behaved responsibly. But the company has
also misbehaved in the past. A few months ago, it was reportedly fined the sum
of N120.4 million for not meeting the September 1 deadline to deactivate
unregistered lines. Earlier this year, it engaged in the promotion of a
tariff plan in contravention of the relevant section of the Nigerian
Communications Act, 2003. The company was ordered to stop. In these
instances, was MTN not well acquainted with the legal provisions that must
guide its business operations?
The behaviour
of MTN is merely one example of the many whereby both foreign
and local companies willfully and brazenly disregard the laws of the
land, thumb their corporate noses at regulatory
authorities and treat both the Nigerian government and
Nigerian consumers with disdain. The Consumer Protection Council (CPC) under a new head had cause not
too long ago, to impose a large fine on Coca-Cola for the company’s
uncooperative attitude in respect of a consumer’s complaint to the CPC.
Again lately, the CPC, in response to consumers’ complaint of poor quality of
service, has had cause to carry out an enforcement exercise in the offices of
service provider, Multichoice Nigeria.
In the power sector, the electricity distribution companies (Discos) ignore at
will the directives that touch on consumers’ interest issued by the regulatory
authority, the Nigerian Energy
Regulatory Commission (NERC).
Most
outrageous are the reported cases, in December last year, of
Popular Farms and Mills and Olam, two Asian-owned companies that
willfully exceeded their rice importation quotas by 300,204
metric tonnes and 110, 163 metric tonnes respectively
and thereby owed the Federal Government unpaid
levies of N19.379 billion and N9.02 billion respectively. Instead
of paying up, the two companies, according to a statement by the Ministry of
Agriculture and Rural Development, chose to write to the then minister of
agriculture requesting that their quotas be revised upward and duties to be
paid in due course. Companies have the temerity to misbehave so brazenly
only because Nigerian officials at one level or another choose to act
unethically, in selfish interests, and against the interest of their country
and its people.
It is
unacceptable that companies would choose to conduct their businesses in willful
disregard for the laws of the land; foreign companies commit gross misdemeanor
that they would not dare to in their home countries. But of course, these
happen only because the relevant authorities fail to do their duty first as
provided by the enabling laws and second, to protect the interests of Nigeria
and its citizens. It is obvious that Nigeria flounders because laws are not
obeyed and violators are not punished.
For long,
patriotic voices, has demanded that regulators do their job; in line with the
sacrosanct fact that business must conduct itself only within the ambit of
regulations. The NCC has indeed lived up to its duty and other regulatory
bodies must follow the example to protect this country from acts of corporate
irresponsibility that is killing the nation’s economy and impoverishing the
people. It cannot be stated strongly enough: investors are welcome in
Nigeria but must be prepared to conduct themselves with the fullest respect for
the nation’s laws. In a manner of speaking, managers of government and
private businesses would be well advised to note that there is a new masquerade
in the Nigerian dance arena and the music has changed. Or have themselves to
blame.
MTN,
having allowed itself to be made a costly example, is paying
an appropriately high price for its serious corporate
dereliction: its shares have lost value significantly, its group
chief executive resigned and some others are likely to go too,
and the company is under pressure to raise the hefty fine, it
ought to pay by yesterday as demanded by the regulator. These are
just the tangible damages: the loss in reputation as a leading corporate
citizen is severe and will not be easily regained. Unfortunately, popular
sympathy for the company is narrowed by its ownership base of only a small
group of investors. Having done such roaring profitable business in
Nigeria over the years, the time has definitely come for MTN Nigeria to follow
the act of its parent company in Johannesburg to, in turn, float its shares in
the Nigerian stock market.
Can MTN
afford to pay a $5.2 billion fine? It certainly can but not necessarily at
once. First, we support that the company works out a payment schedule
stretched over a reasonable period. Second, for the reason that it has done so
well in Nigeria, many Nigerians as possible should benefit from MTN’s high
profitability. To this end, government should purchase shares with the fine
when paid and sell same to Nigerians at the Nigerian Stock Exchange. A
broad and questioning ownership may help discourage corporate misbehaviour,
besides spreading stock dividends more widely. (guardian)
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