Business Hilights
Tracking Nigeria's Headline Business News Online

Just in: MTN contests CBN’s claims on abuse of extant laws, cites Senate clearance

…Affected 4 banks remain mute
Following trended financial sanctions imposed on four banks and order by MTN to refund $8.1 billion to the Central Bank of Nigeria (CBN), the embattled telecoms giant, MTN Nigeria has brushed aside the claims of the apex bank, citing Senate Committee exoneration from the said infractions and abuse of Forex Act 1995.
In a terse statement sent to Business Hilights by MTN Nigeria Thursday afternoon, titled; ‘Central Bank of Nigeria (CBN) correspondence regarding Certificates of Capital Importation (CCIs) in Nigeria,’ the company averred that “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 CCIs 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,” the company said.
However, contacted officials of the four banks including Standchart, CitiBank, Stanbic IBTC, and Diamond Bank said they cannot comment on the matter now as the banks are working on an official response as soon as possible.

CBN had on Wednesday sanctioned leading telecoms giant, MTN and four commercial banks over what it described as flagrant violation of extant laws and regulation on foreign exchange.

Though industry experts who spoke to our correspondent on the development faulted the apex bank for the long time it took it to come with the sanction, a total of N5.87bn was therefore slammed on the four banks in the following order of fines; Standard Chartered – N2.4 bn, Stanbic IBTC – N1.8 bn, Citibank – N1.2bn and Diamond Bank – N0.25bn.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More