MTN Sues AGF and CBN Over $10.1 Billion Fine



Telecommunications company, MTN Nigeria has filed a suit against the Central Bank of Nigeria (CBN) and the Attorney-General of the Federation (AGF) to seek a restraining order.

The suit which was filed on Monday is seeking an injunctive relief to protect its assets and shareholder rights.

CBN alleged improper dividend repatriations by MTN Nigeria and requested that $8.1 billion be returned to the coffers of the banking regulator. Days later, the AGF said MTN had unpaid taxes on foreign payments and imports approximately $2.0 billion.

In a statement on Monday, MTN said it continues to “categorically and unequivocally” deny all charges related to investigations by the CBN and AGF into the company’s CCIs and unpaid taxes respectively. As such it would continue to engage with the relevant authorities on issues.

MTN Nigeria Corporate Relations Executive, Tobe Okigbo, said: “The allegations being made involve issues that appear to be complex and so are easily misunderstood and misinterpreted.

“They are made even more confusing when the relevant authorities send conflicting messages and instructions and act in a way that appears un-coordinated and at cross purposes.

“The simple reality is that MTN Nigeria has never repatriated dividends on the CCIs referenced by the CBN and that MTN is fully compliant with Nigerian tax law.

“With situations like this, it is vital for both the government, regulators and the company to have absolute clarity on the nature of both the allegations being made and the processes that are being followed.

“In the absence of this clarity, our only option is to seek judicial intervention and to ask the courts to act as adjudicator. This has been done today.”

MTN Sues AGF and CBN Over $10.1 Billion Fine.

Telecommunications company, MTN Nigeria has filed a suit against the Central Bank of Nigeria (CBN) and the Attorney-General of the Federation (AGF) to seek a restraining order.

The suit which was filed on Monday is seeking an injunctive relief to protect its assets and shareholder rights.

CBN alleged improper dividend repatriations by MTN Nigeria and requested that $8.1 billion be returned to the coffers of the banking regulator. Days later, the AGF said MTN had unpaid taxes on foreign payments and imports approximately $2.0 billion.

In a statement on Monday, MTN said it continues to “categorically and unequivocally” deny all charges related to investigations by the CBN and AGF into the company’s CCIs and unpaid taxes respectively. As such it would continue to engage with the relevant authorities on issues.

MTN Nigeria Corporate Relations Executive, Tobe Okigbo, said: “The allegations being made involve issues that appear to be complex and so are easily misunderstood and misinterpreted.

“They are made even more confusing when the relevant authorities send conflicting messages and instructions and act in a way that appears un-coordinated and at cross purposes.

“The simple reality is that MTN Nigeria has never repatriated dividends on the CCIs referenced by the CBN and that MTN is fully compliant with Nigerian tax law.

“With situations like this, it is vital for both the government, regulators and the company to have absolute clarity on the nature of both the allegations being made and the processes that are being followed.

“In the absence of this clarity, our only option is to seek judicial intervention and to ask the courts to act as adjudicator. This has been done today.”

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Chuka (Webby) Aniemeka
Chuka (Webby) Aniemeka

Chuka is an experienced certified web developer with an extensive background in computer science and 18+ years in web design & development. His previous experience ranges from redesigning existing website to solving complex technical problems with object-oriented programming. Very experienced with Microsoft SQL Server, PHP and advanced JavaScript. He loves to travel and watch movies.

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