$8.1b Remittance: CBN, MTN Nigeria Reach Truce

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$8.1b Remittance: CBN, MTN Nigeria Reach Truce

$8.1b Remittance: CBN, MTN Nigeria Reach Truce
December 25
07:11 2018

The Central Bank of Nigeria (CBN) and MTN Nigeria Communications have resolved issues relating to the $8.1 billion foreign exchange remittances by the telecom giant, the apex bank announced yesterday.

In a statement, the CBN, however, identified that the proceeds from the preference shares in MTNN’s private placement remittances of 2008 were irregular, having been based on Certificate of Capital Importation (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 CBN said.

In August, last year, the apex bank directed 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 CCIs irregularly issued to MTNN.

The apex bank said that 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.

“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 authorized dealers remain sacrosanct. Potential investors are encouraged to take advantage of the enormous investment opportunities that abound within Nigeria.”

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