Nigeria ordered four banks including Citigroup Inc and Standard Chartered Plc to return $8.1 billion it says was illegally expatriated by mobile-phone company MTN Group Ltd over eight years through 2015.<\/p>\n
The wireless operator \u201cstrongly refuted\u201d the claim.<\/p>\n
The four banks, which include Nigeria\u2019s Stanbic IBTC Holdings Plc and Diamond Bank Plc, will be fined about 5.9 billion naira ($16 million), Nigeria\u2019s central bank said in an emailed statement Wednesday.<\/p>\n
MTN was also ordered to participate in the refund.<\/p>\n
The order comes almost two years after Johannesburg-based MTN was first accused of the practice. Nigeria\u2019s senate said in 2016 that it was investigating the same four banks for transferring almost $14 billion for MTN in breach of the country\u2019s foreign-exchange rules, but last year the lawmakers ruled the wireless company hadn\u2019t violated the law.<\/p>\n
MTN said in 2016 that it obtained central bank approvals before any dividends were issued.<\/p>\n
\u201cThe re-emergence of these issues is regrettable as it damages investor confidence and, by extension, inhibits the growth and development of the Nigerian economy,\u201d MTN said in a statement on Thursday. \u201c<\/p>\n
We will engage with the relevant authorities and vigorously defend our position on this matter and provide further information when available.\u201d<\/p>\n
The decision will come as a blow to MTN, because the company has already settled a separate, $1 billion fine in Nigeria for missing a deadline to disconnect unregistered customers. Negotiations over that penalty went on for almost a year and weighed heavily on the share price, which has never recovered.<\/p>\n
As part of the settlement, MTN agreed to list its local unit in Lagos and is planning to do so this year. Citigroup is working on that plan.<\/p>\n
Standard Chartered received the largest penalty Wednesday for transferring the biggest amount of $3.4 billion, with Citigroup responsible for $1.7 billion. Stanbic IBTC is engaging with the central bank over the issue, it said in a statement on Thursday. The other lenders didn\u2019t immediately comment.<\/p>\n
Nigeria is MTN\u2019s biggest market with more than 54 million customers, out of 221 million worldwide. The share price has slumped 21% this year to R107.34, valuing the company at R202 billion ($14 billion), and touched eight-year lows earlier this month.<\/p>\n