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The Chief Executive Officer of MTN Nigeria, Ferdi Moolman, has described as premature media reports that the telecoms giant offered N300 billion ($1.5 billion) as final settlement for the fine imposed on it by Nigerian Communications Commission (NCC).

Moolman said on Saturday that MTN is still negotiating with the Federal Government of Nigeria over the $3.9 billion fine imposed on the telecoms company for its failure to disconnect unregistered subscribers by the regulatory deadline.

“The management of MTN Nigeria is aware of the reports on the settlement negotiations,” the MTN Nigeria CEO said in a statement. “The confidential negotiations are still very much ongoing with the authorities to achieve an amicable resolution of the matter."

On Thursday, the Senate Committee on Communications revealed that MTN sent a proposal to the NCC and the Attorney General of the Federation stating that the company can only pay N300 billion ($1.5 billion) over a four-year period as its full and final settlement for the fine.   

According to the proposal, MTN will pay N100 billion ($500 million) in installments between December 31, 2016 and December 31, 2020. MTN will purchase N80 billion worth of Nigerian sovereign debt to be issued between 2016 and 2017. The telecoms company was said to have also offered to provide broadband access valued at N70 billion to the Federal Government from excess capacity on the company's fibre network for the purpose of the government's e-initiatives.

The Senate Committee also revealed that the proposed settlement fee includes the N50 billion ($250 million) MTN paid to the federal government on February 24 as down payment for the fine.

During the Senate enquiry, it was revealed that neither the NCC nor the Ministry of Communications were involved in the negotiation with MTN that led to the reduction in the fine by 25 percent nor was the Commission and its supervising Ministry involved in the discussions that led to the N50 billion down payment.

Moolman said MTN will make no further comments at this time.