MTN Replies CBN, Says Funds Repatriated were Approved

By Eric Elezuo

Sequel to the letter written to MTN Nigeria by the Central Bank of Nigeria, alleging that the company illegally repatriated the sum of $8.1 billion, MTN has released a statement via @MTNNG saying the CBN approved the dividends it repatriated.

The statement also stated that as a company, they are are law abiding citizens and will do anything that runs the law aground. It further frowned at the re-emergence of the issue, saying it could affect investors’ confidence and the Nigerian economy as a whole.

The statement derived from the company’s twitter handle is presented as follows:

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.