MTN Nigeria takes legal action over refund threats

14 Sep 2018

MTN Nigeria has filed an injunction against the Central Bank of Nigeria (CBN) and the Attorney General of the Federation (AGF) after the two parties demanded billions of dollars from the mobile giant for alleged financial malfeasance. According to local publication The Guardian, the apex bank has asked MTN to refund USD8.1 billion which it claims has been illegally repatriated through four banks, while the AGF wants the firm to offset USD2 billion unpaid taxes and arrears incurred during the last decade. MTN insists that it will continue to refute all charges related to investigations by the defendants into the company’s Certificates of Capital Importation (CCIs) and unpaid taxes.

According to the CBN, MTN did not obtain approval before transferring the funds abroad. Four banks – Standard Chartered PLC, Stanbic IBTC Bank PLC, Citibank and Diamond Bank PLC – are also accused of breaching foreign exchange laws by failing to verify that the operator had met all the requirements. Previously, in November 2017 Nigeria’s Senate approved a report largely exonerating MTN, after an investigation launched in September 2016 accused the cellco of illegally repatriating USD13.9 billion to its South African parent company.

Nigeria, MTN Nigeria