Thursday, August 30, 2018 / 01:14 PM / MTN
MTN Nigeria Communications Limited (MTN Nigeria) received a letter on 29 August 2018 from CBN alleging that CCIs issued in respect of the conversion of shareholders loans in MTN Nigeria to preference shares in 2007 had been improperly issued. As a consequence, they claim that historic dividends repatriated by MTN Nigeria between 2007 and 2015 amounting to $8.1 billion need to be refunded to the CBN.
MTN Nigeria strongly refutes these allegations and claims. No dividends have been declared or paid by MTN Nigeria other than pursuant to CCls issued by our bankers and with the approval of the CBN as required by law.
The issues surrounding the CCIS have already been the subject of a thorough enquiry by the Senate of Nigeria. In September 2016 the Senate mandated the Committee on Banking, Insurance and other Financial Institutions to carry out a holistic investigation on compliance with the Foreign exchange (monitoring and miscellaneous) Act by MTN Nigeria & Others. In its report issued in November 2017, the findings evidenced that MTN Nigeria did not collude to contravene the foreign exchange laws and there were no negative recommendations made against MTN Nigeria.
MTN Nigeria, as a law-abiding citizen of Nigeria, is committed to good governance and to abiding by the extant laws of the Federal Republic of Nigeria. The re-emergence of these issues is regrettable as it damages investor confidence and, by extension, inhibits the growth and development of the Nigerian economy.
We
will engage with the relevant authorities and vigorously defend our position on
this matter and provide further information when available.
Related News
1.
CBN
Clamps Down on Four Banks; Writes MTN to Refund $8bn
2.
MTN
- A case study for market-supporting institutions
3.
MTN Nigeria – Interim
Financials For H1 2018
4.
Neither MTN
Nigeria Nor Any of Its Advisers Has Filed Any IPO Application With SEC Nigeria
5.
MTN Ghana
Launches Mobile Money Based IPO
6.
MTN Nigeria IPO
Teaser – Listing and Precursory Information
7.
MTN Nigeria To
List On The NSE; A Promise Fulfilled – OTC Equity Research
8.
Stabilization
Mechanism: Sticking Half Way through the Line
9.
CBN Notifies on
the Revised Foreign Exchange Manual
10.
Forex: Naira
Lifted With $210m CBN Injection
11.
Forex: CBN Flags
off SMIS in Chinese Yuan
12.
Nigeria Sells
Yuan For First Time as It Deepens China Ties
13.
FX
Utilisation in January 2017-Symptoms of An Opaque Structure