MTN moves to secure assets in Nigeria
South African Telecoms firm, MTN Group says it has applied to Nigeria's High Court to restrain the country's Central Bank and the Attorney General from taking further action over its assets in Nigeria.
Tue, 11 Sep 2018 08:00:11 GMT
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AI Generated Summary
- MTN faces demands to repatriate 8 billion dollars to Nigeria at a lower exchange rate, potentially incurring a 4 billion dollar financial loss.
- Dispute over tax payments of 2 billion dollars, with MTN asserting compliance while tax authorities claim otherwise.
- Central Bank imposes fines on banks involved, prompting MTN to seek legal protection from a high court to challenge regulatory actions and uphold the rule of law.
South African telecom giant, MTN Group, has recently found itself embroiled in a financial dispute with Nigeria's Central Bank and the Attorney General over irregular certificates of capital importation. The company has been asked to repatriate about 8 billion dollars back to Nigeria at a foreign exchange rate significantly lower than the current rate, resulting in a potential financial loss of around 4 billion dollars. In addition to the repatriation issue, tax authorities and the Attorney General claim backlogs of tax payments totaling about 2 billion dollars, which MTN disputes, stating that they have been up to date with their tax obligations. The Central Bank has also levied fines on banks involved in the transactions, amounting to billions of Naira. These sanctions signal the seriousness of the situation, with MTN now seeking legal protection from a high court to prevent further action from the Central Bank. The company's move has the potential to escalate into a diplomatic issue, with the South African government offering assistance to resolve the matter. Lami Adekola, Co-founder and Director at Hamilton and George, emphasized the importance of upholding the rule of law in the midst of the dispute, highlighting the need for proper clarification and potential repatriation of funds to Nigeria to resolve the issue and restore investor confidence.
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