HomeNewsGlo’s Debt To MTN Slashed From ₦‎7.05bn To ₦‎2.3bn In Final Settlement

Glo’s Debt To MTN Slashed From ₦‎7.05bn To ₦‎2.3bn In Final Settlement

The dispute between Nigerian telecoms company Globacom and South African company MTN over a N7.05 billion debt has been settled significantly.

MTN had accused Globacom of owing interconnect charges and other fees totaling over N7.05 billion.

The tally reportedly included a previously paid N1.6 billion, VAT of N1.7 billion that MTN claimed to have paid on Globacom’s behalf, and compounded interest amounting to N3.6 billion.

Globacom, however, contested these claims, emphasising its commitment to fulfilling its financial obligations independently and questioning the rationale behind MTN’s payment of VAT on its behalf.

In response to the allegations, Globacom demonstrated its financial capability by issuing a payment guarantee of approximately N3.49 billion and providing bank cheques totaling N3.5 billion, though MTN eventually accepted a bank guarantee instead.

This led to a reconciliation process facilitated by the Nigerian Communications Commission (NCC) in Lagos, where it was determined that the actual interest owed by Globacom to MTN was N2.368 billion.

This amount was agreed upon as the full and final settlement, with MTN instructed to proceed with calling up the payment guarantee from First Bank.

The situation underscores the intense competition within the telecoms industry in Nigeria and raises concerns about the dynamics of power and influence among major players.

Globacom has voiced criticisms over what it perceives as undue influence exerted by MTN, suggesting a broader industry issue that extends beyond national borders, as seen in MTN’s operations in other countries like Ghana.

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