$8.1bn Repatriation: MTN Nigeria Refutes CBN Allegation

Posted by African Examiner Business News, Featured, Latest Headlines Thursday, August 30th, 2018

By Niyi Adeyi

(AFRICAN EXAMINER) – Following the allegation of misconduct against it by the Central Bank of Nigeria (CBN), MTN Nigeria Communications Limited (MTN Nigeria) has refuted repatriation of the sum of $8.1bn between 2007 and 2015.

The telecommunication giant Public Relations Manager, Funso Aina made the denial Thursday via a media statement, to acknowledging the receipt of the CBN letter and at the same time react to the accusation.

His words: “MTN Nigeria Communications Limited (MTN Nigeria) received a letter on August 29, 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 $8.1bn need to be refunded to the CBN.’’

Aina stated further: “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 firm’s Spokesperson pointed out that the issues regarding the CCIs were the object of investigation by the Senate in 2016, adding that the findings by the Committee on Banking, Insurance and other Financial Institutions indicated that it did not contravene forex laws.

The company regretted the re-emergence of the issue, lamenting “it damages investors’ confidence and by extension, inhibits the growth and development of the Nigerian economy.”

“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,” Aina recalled.

MTN Nigeria according to him is committed to good governance, as well as to abiding by the extant laws of the Federal Republic of Nigeria.