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MTN Group, Africa’s largest mobile operator, has sued the Nigerian Communications Commission over the $5.2 billion fine imposed on the company for failing to disconnect 5.2 million phone lines.

The South African company said it is challenging the fine because it has resolved that the manner of the imposition of the fine and the quantum thereof is not in accordance with NCC’s powers under the Nigerian Communications Act.

“MTN has followed due process and has instructed its lawyers to proceed with an action in the Federal High Court in Lagos seeking appropriate reliefs,” a statement said.

MTN has been negotiating with the NCC over the massive fine imposed on it since October. Intense lobbying by MTN executives persuaded the NCC to slash the fine by 25 percent to $3.9 billion. But NCC said MTN must pay the fine by December 31st.

However, the legal action buys MTN more time to negotiate with the NCC as it restrains the regulator from taking any further action until the courts gives its judgment.

“Notwithstanding this action the Company will continue to engage with the Nigerian authorities to try and ensure an amicable resolution in the best interests of the Company,” the statement said.

When contacted on the latest development, Tony Ojobo, the NCC’s spokesman, said the commission had been served the court summons on the matter.

“The commission is ready for them. When we get the summons, we shall meet them in court,” Ojobo said.

In the aftermath of the NCC fine, MTN’s share price crashed by more than 20 percent and several executives have resigned, including former group CEO, Sifiso Dabengwa.

Chibuike Oguh is Financial Nigeria's frontier market analyst