The Central Bank of Nigeria has announced the resolution of its dispute with MTN Communications Limited, saying the company will now atone only for the illegal remittances on preference shares issued in 2008.

CBN’s spokesman and director of corporate communications, Isaac Okorafor, announced this in a statement published on the bank’s website on Monday.

The MTN also corroborated the truce in a statement simultaneously issued in Johannesburg.

According to the terms of settlement, the CBN instructed MTN Nigeria to implement a notional reversal of the 2008 private placement of shares in MTN Nigeria at a net cost of circa N19.2 billion – equivalent to US$52.6m (the notional reversal amount).

“This is on the basis that certain certificates of capital importation (CCIs) utilised in the private placement were not properly issued.

“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”, MTN said.

“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.”

The CBN had ordered MTN to return to Nigerian coffers $8.1 billion repatriated between 2007 and 2015, because of capital importation certificate irregularities.

Four banks involved in the repatriation, Standard Bank, Stanbic IBTC Nigeria, Citibank Nigeria and Diamond Bank Plc, were fined by the CBN.

Standard Chartered Bank was fined N2.47 billion, Stanbic IBTC, N1.88 billion, Citibank Nigeria, N1.26 billion and Diamond bank, N250 million.

The statement by CBN below:

“The Central Bank of Nigeria (CBN) in August 2018 directed MTN Communications Limited (MTNN) to reverse repatriations valued at $8.1 billion done on its behalf by four commercial banks between 2007 and 2015 on the basis of Certificates of Capital Importation (CCIs)
irregularly issued to MTNN.

Following the keen interest shown by various stakeholders sequel to the regulatory action, the CBN committed to engage further with MTNN with a view to achieving an equitable resolution.

Consequent upon the above, MTNN, led by its Nigerian shareholders, held intensive engagements with the CBN in the course of which it supplied additional material information, not previously offered to the Bank, satisfactorily clarifying its remittances. Having now reviewed the additional documentation provided by the company, the CBN has concluded that MTNN is no longer required to reverse the historical dividend payments made to MTN Nigeria shareholders.

However, the CBN identified that the proceeds from the preference shares in MTNN’s private placement remittances of 2008 were irregular having been based on CCIs that were issued without the final approval of CBN.

The CBN and MTNN have mutually agreed that the aforementioned transaction be reversed notionally to bring it into full compliance with foreign exchange laws and regulations.

The parties have resolved that execution of the terms of the agreement will lead to amicable disposal of the pending legal suit between the parties and final resolution of the matter.

The CBN assures foreign investors that the integrity of the CCIs issued by authorised dealers remain sacrosanct. Potential investors are encouraged to take advantage of the enormous investment opportunities that abound within Nigeria”.

However, the telecommunications giant has another issue to resolve: the court suit over the demand by the attorney general for back taxes.

MTN, in its statement, assured its shareholders that it was also moving towards resolution of this problem.

“Shareholders are advised that the legal process initiated by MTN Nigeria for injunctive relief restraining the AGF from taking further action in respect of its orders for back taxes is continuing.

“The AGF matter came up for initial mention before the Federal High Court of Nigeria Lagos Judicial Division on 8 November 2018 and has been adjourned to 7 February 2019. MTN Nigeria continues to maintain that its tax matters are up to date and no additional payment, as claimed by the AGF, is due, and consequently no provisions or contingent liabilities are being raised in the accounts of MTN Nigeria for the AGF back taxes claim”, the company said.

The attorney-General of the Federation (AGF) is demanding from the company the payment of N242 billion and 1.3 billion dollars, for import duties and withholding tax.

http://mcebiscoo.com/2018/12/25/cbn-mtn-announce-truce-illegal-remittance/

The poster above me is a mad man, the win again after winning the up coming election?

Corruption shaking hands

Ahbeg......make una epp me ask these pipu how this wan take consyn me now??

[img]https://media./images/7cf6f34267c58ff88da53ddb7831c16c/tenor.gif[/img]

No to truce. They should simply pay the fine and sin no more

Good way to go

1 thing I'm doubly sure of is that buhari illiteracy is responsible for present day Nigeria's macroeconomic backwardness, buhari candidacy is responsible for any financial woes on any sane, responsible hard working Nigerian, he is responsible for the hardship in the marketplace, unredeemable killer administration

Now this money should be used to settle ASUU before we start hearing excuses like PDP looted the money.

Truce? I thought I read on another thread of a settlement ��‍♂️

I once thought MTN was untouchable. Am glad this will send the right signal to companies exploiting Nigeria since.

BUY YOURS NOW
CHECK MY SIGNATURE FOR NUMBER

This is the same company the US ambassador insisted FG should not have pursued the case because it does not encourage investors to invest.

We need to remember that this people do not take our interest highly as we think.

This just sends a wrong message that foreigners aren't welcome!

Nice one. MTN is too big to fail. It'll cripple a lot of things.

Now that that's resolved and MTN knows what's to happen if that repeats itself, I hope dey do normal or dangotte may be interested o

MTN needs to tell us the cost of this truce...This is Naija where nothing goes for nothing. On the other hand, we also expect MTN to announce its new date for listing of its shares on Nigeria Stock Exchange- this is very important for inclusion of the citizens in the ownership structure.

This is one of the best measures the financial regulator can take to make Nigeria, a country for healthy bizs. Foreigners cant just come to our country to make it a dumping ground they can exhibit the their execesses and corruption. We need to take dis kind of actions to protect our indigenous companies most especially the infant ones and our economy extensively.
They don't care about us a bit. They are only after their own profits and their countries.
CBN, kudos to you on this.

Much as I personally don't like MTN and want them to be penalised because of their exploitative billings, I feel very upset that CBN have to ask the company to pay $8.2b without being very sure the company has contravened our law

It is a clear international display of incompetence and a national embarrassment. We expect CBN to be double sure before slamming penalty. Next time CBN make any public pronunciation, I may have to get a second check before I trust it.

Wharever, my concern is that the authority should do the right thing, as appropriate and make sure that all fines are also utilized judiciously, as necessary.
We frown at OleGbeOleGba.

Wetin concern me and MTN? can u guys imagine last month I was at MTN head office in a state capital wit my boss to get sim, dem say sim card don finish for inside MTN head office for a whole state capital of a state, we decided to reactive a sim, dey had to kip people waiting saying dey don't av sub for browsing again....and everybody was like una no get sub? nah wah...

Jahwinaboy:
I once thought MTN was untouchable. Am glad this will send the right signal to companies exploiting Nigeria since.

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post=74146027:
Good way to go

See your life?? How is this a good thing ?? How is it way to go ??
If it was a Nigerian firm in SA that infringed and cheated the SA govt the way MTN did, do you in your wildest imagination think the South African reserve bank would give the Nigerian firm this sort of scandalous soft landing I've lived in SA briefly and I know how they frustrated some Nigerian businesses with their trade protection laws.
......Then again, I'm not surprised you reason this irrational way, after all, you support Buhari,,,,,,,,what on earth could be more irrational than that ?