SENATOR Ben Murray- Bruce, PDP, Bayelsa East has described the imposition of $5.2 billion fine on MTN, Nigeria by the Nigerian Communications Commission, NCC was a bad signal to foreign investors.
According to him in a statement made available to Journalists in Abuja yesterday, Senator Bruce who noted that the decision will hurt Nigeria and investors coming to the country.
He urged the Federal Government to as a matter of urgency take steps that would help remedy the situation and restore investor confidence in Nigeria by resolving this impasse with tact with a view to the nation’s long term financial interests rather than our immediate interests.
Senator Bruce who was yesterday named Senate Committee Chairman on Privatization said, “the recent $5.2 billion fine imposed on MTN Nigeria by the Nigerian Communications Commission is 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.
“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.
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.” Click to signup for FREE news updates, latest information and hottest gists everyday
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I wonder the substance Ben Bruce takes. A corporate body flouted a policy that it is a signatory to with the consequences clearly stated and Ben thinks that will scare investors? We do not want investors that will break our laws. All telecom operators were directed to deactivate unregistered lines. MTN refused to deactivate over 5 million lines. Some of these lines were used for negotiating kidnap ransom and terrorism and someone thinks fine on such will scare investors who also desire security anywhere they invest? Silly talk.
ReplyDeleteThese lawmakers often speak about their personal gains more than listening to the mandate of those who voted to keep them where they are.
ReplyDeleteBen Murray-Bruce must learn the rudiments of ethical business responsibilities before running his mouth.National security is paramount for all developmental programmes in any country.You can't cut your nose to spite your face,even developed countries impose hefty fines on companies that flouted compliance of stipulated directives and agreed conditions.MTN is no different.VW has flouted emission regulations now and will be fined heavily,so also was BP oil spill that brought heavy billions of dollars fine.HSBC,BARCLAYS and others were fined when they undermined the rules of the license guiding their operations.
ReplyDeleteWow Ben I am not happy with how you are looking at this issue. Many lives have been lost due to terrorism. Unregistered sims should have been cut off as a security measure to citizens of this great nation. Mtn knew this and also agreed to pay a fine if they default. Yet they still defaulted. We would have sent a bad message if we did not fine them for this. Now investors coming know that it is no longer business as usual. Most big and serious investors dont like to give bribe so they stay away from Nigeria. When they see now that we are ready for a change and we are ready to keep our word. They will begin to come into the country. I am not talking of wicked indian investors. I am talking of serious well meaning investors who have been watching from afar and are now willing to do business with Nigeria because of the change they are witnessing. Or maybe you have shares with MTN. Sorry for your losses. Obas
ReplyDeleteSenator Ben Bruce made a common sense because amputation is not the right medicine �� for headache . This is a Proverb, please you all should think about it .
ReplyDeleteWe always come up with this scare tactics. Will MTN do this in their country of origin. We have for long been a country of anything goes & that's why these so called foreign investors who come in with empty brief case & take advantage of our porous system do as they wish & at d sign of d slightest problem they move out with loaded brief cases. It's time we draw d line & those that cannot keep to our laws should stay out with all their funds. MTN should pay or pack & ship out. Who will loss, certainly not Nigeria!
ReplyDeleteIs Mtn bigger than the constitutional laws of Nigeria. Nigeria can now see that all the common sense noise defy rational sense. A whole senator and a respected one for that matter. !!!!!!!
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