MTN denies claims it owes a R117 billion refund

The company says findings from an enquiry by the Senate of Nigeria showed that MTN did not collude to contravene foreign exchange laws.

Telecommunications company MTN said on Thursday that its Nigeria operation had received correspondence from the central bank alleging that the issuance of Certificates of Capital Importation (CCIs) in the conversion of shareholders loans to preference shares in 2007 had been improperly done and it should pay about R117 billion refund in historic dividends repatriated between 2007 and 2015.

“MTN Nigeria strongly refutes these allegations and claims. No dividends have been declared or paid by MTN Nigeria other than pursuant to CCI’s issued by our bankers and with the approval of the CBN (Central Bank of Nigeria),” MTN said.

It said the issues surrounding the CCI’s had already been the subject of a thorough enquiry by the Senate of Nigeria and findings showed MTN Nigeria did not collude to contravene foreign exchange laws.

“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,” said MTN.

The company said it would engage with relevant authorities to defend its position.

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