CBN And MTN Make Peace
By Iwedi Ojinmah 4 months ago
The Central Bank of Nigeria (CBN) and MTN Nigeria Communications have reached an agreement relating to the $8.1 billion foreign exchange remittances by the telecom giant.
This is according to an announcement by the Nigerian Parent Bank yesterday.
However, the CBN identified that the proceeds from the preference shares in MTNN’s private placement remittances of 2008 were irregular. They were based on Certificates 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 Related: MTN Now A Public Company .
“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 remains sacrosanct. Potential investors are encouraged to take advantage of the enormous investment opportunities that abound within Nigeria.”
All other terms of the settlement were kept confidential.