How Globacom and MTN Reach Settlement from ₦‎7.05 Billion to ₦‎2.3 Billion


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Resolving Financial Dispute: Globacom and MTN Reach Settlement from ₦‎7.05 Billion to ₦‎2.3 Billion

The financial dispute between Nigerian telecoms giant Globacom and South African company MTN has taken a significant turn towards resolution. The conflict arose when MTN accused Globacom of owing over ₦‎7.05 billion in interconnect charges and other fees, including a disputed VAT payment. Globacom countered these claims, asserting its commitment to meeting financial obligations independently.

To demonstrate its financial capability, Globacom provided a payment guarantee of approximately ₦‎3.49 billion and bank cheques totaling ₦‎3.5 billion, though MTN eventually accepted a bank guarantee. The Nigerian Communications Commission (NCC) facilitated a reconciliation process in Lagos, determining that the actual interest owed by Globacom to MTN was ₦‎2.368 billion. This agreed-upon amount became the full and final settlement, with MTN authorized to call up the payment guarantee from First Bank.

This episode sheds light on the intense competition within Nigeria’s telecoms industry and raises questions about power dynamics and influence among major players. Globacom has voiced concerns about what it perceives as undue influence exerted by MTN, suggesting broader industry issues that extend beyond national borders, echoing similar dynamics witnessed in MTN’s operations in other countries, such as Ghana.


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Medinat

I am a full-time blogger, an educationist and a digital marketer. I am the head of Editorial at Ebira Online Media.

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