MTN offers $1.5 billion to settle fine imposed by Nigeria

South African telecoms firm MTN Group has offered $1.5 billion to settle a much larger fine from Nigerian regulators for missing a deadline to disconnect unregistered SIM card users, a document seen by Reuters shows.

Africa's biggest mobile phone group has been in talks with Nigerian authorities to have the $3.9 billion penalty reduced and last month made a "good faith" payment of $250 million towards a settlement.

In a letter to the Nigerian government from MTN's lawyer, former U.S. Attorney General Eric Holder, the company proposed a 300 billion naira ($1.5 billion) settlement to be paid through a combination of government bond purchases, cash instalments and network access to the Nigerian government.

Holder said in the letter, dated Feb. 24, the offer "ultimately is in the best interest of the FGN (Federal Government of Nigeria) and MTN Nigeria."

Johannesburg-based MTN said on Friday talks with the Nigerian government were ongoing.

"MTN has previously advised shareholders not to make decisions based on press reports and MTN again urges its shareholders to refrain from doing so," it said.

Nigeria's telecoms ministry had no immediate comment.

In its annual results last week, MTN said it had put aside $600 million to cover a deal over the fine, which was originally set at $5.2 billion on the basis of charging $1,000 for every unregistered SIM card.

Nigeria imposed a deadline on mobile operators to cut off unregistered SIM cards, which MTN missed, amid fears the lines were being used by criminal gangs, including militant Islamist group Boko Haram.

The fine, equating to more than twice MTN's annual average capital expenditure over the past five years, came months after Muhammadu Buhari was swept to power after an election campaign which pledged tougher regulation and a fight against corruption.

Shares in MTN, which makes about 37 percent of its sales in Nigeria, were little changed at 147.53 rand at 0839 GMT, after rising more than 2 percent shortly after the market opened.


Reuters

U-17 World Cup winner Kelechi Nwakali signs with Arsenal

Nigerian midfielder Kelechi Nwakali has signed a deal to join Arsenal on a five-year contract this summer, sources have told ESPN FC.

Arsenal have been in advanced talks with Nwakali and fellow Nigerian teenager Samuel Chukwueze since January, with both players helping Golden Eaglets win last year's FIFA Under-17 World Cup.

AllNigeriaSoccer reported that Nwakali told them on Thursday that he had put pen to paper, but the midfielder claimed he had not said those quotes. "I've seen it [the report]. I am surprised about it because I did not speak to anybody. I never said anything like that," he told ESPN FC.

Sources told ESPN FC that the deal is done, but that there are still some complications to be ironed out which is why the deal has not been announced.

The Gunners will reportedly pay a transfer fee of about £2.5 million to the Diamond Football Academy as part of the deal and Nwakali will join when he turns 18 in June.

Nwakali has an older brother, Chidiebere, who is part of Manchester City's academy, but has previously said he admired Arsenal's track record of giving young players the chance to play first-team football.

The midfielder was voted the Most Valuable Player of the U17 World Cup, where he caught the eye of many European clubs -- including Arsenal.

"We identified Nwakali as the player of the tournament, basically, and as a top player," Gunners boss Arsene Wenger said in January.

Nwakali was pictured with Wenger and former Arsenal and Nigeria striker Nwankwo Kanu during his visit to the Emirates in January. Wenger said at the time that the talks to sign Nwakali and Chukwueze were "progressing well" but that they would remain in Nigeria until they turn 18.

Nigeria international Alex Iwobi, who joined Arsenal's youth setup at the age of eight, was also recently promoted to the club's first-team and has played a part in the club's FA Cup campaign this season.

ESPN 

Related story: Video - Nigeria defend title and defeat Mali in 2015 FIFA U17 World Cup Final

Building collapse in Lagos, Nigeria kills 30

The number of people killed when a five-storey building under construction in Nigeria's main city, Lagos, collapsed yesterday has risen to 30, emergency officials say.

The building, located in the wealthy Lekki district, crumbled during heavy rainfall.

Thirteen people have so far been rescued but it's thought others may still be trapped in the rubble.

In a statement, the Lagos State government said work on the building had continued without a permit from the authorities, who had sealed off the site.

They have ordered the managers of the project to report to police or face arrest.

The building had been inhabited by construction workers and their families.

BBC

Video - Highway targeted by Boko Haram reopens in Nigeria

Multinational forces have managed to clear the area and revive its economy.

Switzerland to return $321 in stolen Abacha loot to Nigeria

Nigeria and Switzerland have agreed a deal for the latter to return more than $300 million of funds confiscated from former Nigerian military ruler Sani Abacha.

Abacha - who led Nigeria between 1993 and his death 1998 - is suspected to have looted up to $5 billion of public funds during his reign. He was investigated for corruption during his lifetime and some of his assets have been frozen posthumously. Abacha’s son, Abba Abacha, was charged by a Swiss court with money-laundering, fraud and forgery in 2005 and spent more than 500 days in custody.

In 2006, Luxembourg ordered that the funds, held by the younger Abacha, be frozen. The Nigerian government agreed a deal with the Abacha family in 2014 to reclaim the late ruler’s assets in return for dropping a complaint against the younger Abacha.

Nigerian President Muhammadu Buhari was elected largely on an anti-corruption ticket and has pledged to reclaim billions of dollars of public funds lost to corruption, which has long plagued the West African nation. Nigeria is ranked 136th out of 168 countries in Transparency International’s 2015 Corruption Perceptions Index and Nigerian information minister Lai Mohammed said in January that 1.34 trillion naira ($6.8 billion) in public funds had been stolen by government ministers and bankersbetween 2006 and 2013.

In a statement issued on Tuesday on behalf of Nigerian Vice President Yemi Osinbajo, the Nigerian Presidency said that Osinbajo had met with the Swiss foreign minister Didier Burkhalter and other Swiss representatives to finalize the return of $321 million. Osinbajo said he would “guarantee that returned assets will be used in the interest of the people of this country.” Switzerland has already returned more than $720 million of the stolen funds and it is believed that Abacha may have storedup to $2.2 billion in European bank accounts.

Newsweek