The Nigerian government is reportedly working to reduce MTN’s repatriation sanction from $8.1 billion to $800 million
This is the result of a backdoor arrangement between the Nigerian government and the Central Bank of Nigeria. Nigerian senate seeks an explanation over the planned reduction in MTN repatriation fine
On Tuesday, November 13, 2018, Nigerian Senate says it is interested in the controversial forex dispute and it will investigate what informed the penalty of $8.1 billion and the planned reduction in the fine.
Senator Rafiu Ibrahim (Kwara), Chairman of the Senate Committee on Banking and other Financial Institutions, said the parliament will present a comprehensive report on the matter. Godwin Emefiele, the central bank governor, had said the apex bank may reduce the $8.1 billion demand it ordered MTN Nigeria to refund in the repatriation dispute.
Godwin Emefiele, the central bank governor, had said the apex bank may reduce the $8.1 billion demand it ordered MTN Nigeria to refund in the repatriation dispute.
He explained that the documents submitted by the telecoms firm and banks will help to make a decision in reducing the size of the claim at the top level.MTN Group shares rise by 2.3% on the report that Nigerian authorities could reduce the $8.1 billion forex repatriation dispute to $800 million.
Market analysts say the shares rose as a result of a news report that the fine will come down, Reuters reports.
In August 2018, Nigeria's central bank (CBN) ordered MTN and four other banks to “refund a total of $8.134billion moved out of the country" for breaching the country's forex regulations.
The central bank also slammed a huge N5.8 billion fine on the banks for allegedly aiding MTN in the illegal capital repatriation.
MTN had denied any wrongdoings and sue the Nigerian authority over the matter. Four banks said they are cooperating with the apex bank to find an amicable solution in the matter after many of them were deducted.
A Nigerian court has also adjourned the hearing in the case till December 2018.
Culled from a Vanguard report