Telecommunications group MTN’s share price rose nearly 21% on Friday afternoon after the company announced it had reached a settlement with Nigerian authorities and that it would pay a N330-billion, or $1.67-billion, fine in tranches over a three-year period.

The Nigerian Communications Commission (NCC) in October last year fined MTN $5.2-billion over its failure to deactivate 5.2-million unregistered cellphone SIM cards by August 2015.

This led to the resignation of former CEO Sifiso Dabengwa in November last year, when group chairperson Phuthuma Nhleko stepped in as interim CEO to assist in negotiations with Nigerian authorities over the fine.

The fine was later reduced to about $3.9-billion, while MTN and the Nigerian authorities continued negotiating a settlement.

N50-billion paid in good faith and without prejudice by MTN Nigeria on February 24 formed part of the monetary component of the settlement, with the outstanding N280-billion to be paid in tranches.

MTN would pay two tranches of N30-billion each on July 8 this year and March 31, 2017. This would be followed by four tranches of N55-billion each to be paid on March 31, 2018, December 31, 2018, March 31, 2019, and May 31, 2019.

In addition to the fine, MTN had also agreed that MTN Nigeria would ensure compulsory compliance with Nigeria’s Code of Corporate Governance for the Telecommunications Industry; that it would always ensure full compliance with the licence terms and conditions as set out by the NCC; and that it would take immediate steps to ensure the listing of its shares on the Nigerian Stock Exchange as soon as it is commercially and legally possible.

Nhleko on Friday thanked the Federal Government of Nigeria “for the spirit in which the matter was resolved” and said the relationship between MTN, the Nigerian government and the NCC had been strengthened and restored.

MTN’s share price on the JSE jumped to R149.50 a share on Friday afternoon, up 20.8% on Thursday’s close of R123.70 apiece.