MTN and Nigeria’s central bank (CBN) have concluded talks and reached a settlement over the $8.1 billion the bank alleged that MTN had unlawfully expatriated.<\/p>\n
Following months of deliberations, MTN will now pay only\u00a0$52.6 million (R770 million) to end the dispute over dividend payments made to shareholders.<\/p>\n
At the meetings held throughout November 2018, MTN Nigeria provided additional material documentation which satisfactorily clarified its remittances, the group said.<\/p>\n
The CBN upon review of the additional documentation concluded that MTN Nigeria is no longer required to reverse the historical dividend payments made to MTN Nigeria shareholders.<\/p>\n
However, the CBN maintains that the proceeds from the preference shares in MTN Nigeria\u2019s private placement remittances of 2008 of circa USD$1 billion were irregular having been based on CCIs that only had an approval-in-principle, but not final regulatory approval of CBN.<\/p>\n
MTN Nigeria and the CBN have agreed that they will resolve the matter on the basis that MTN Nigeria will pay the notional reversal amount without admission of liability.<\/p>\n
In terms of the resolution agreement, the CBN will regularise all the CCIs issued on the investment by shareholders of MTN Nigeria of circa $402,625,419 without regard to any historical disputes relating to those CCIs, thereby bringing to a final resolution all incidental disputes arising from this matter.<\/p>\n
While the $8.1 billion issue has now been resolved, MTN said that its action regarding the $2 billion that Nigerian authorities have claimed in back-taxes is still continuing.<\/p>\n
The legal process initiated by MTN Nigeria for injunctive relief restraining the authorities from taking further action in respect of its orders for back taxes is continuing, it said.<\/p>\n