By By Chinedu James
MTN Nigeria is in court with the Central Bank of Nigeria (CBN) and the office of the Attorney General of the Federation (AGF) over accusations of unpaid taxes and dividend repatriations totaling $8.1billion.
The telecom giant is disputing the claims against it by Nigerian authorities. An official statement by the telco said it was seeking protection within the confines of the Nigeria law, restraining the CBN and the AGF from further actions while it continues to dialogue with relevant authorities.
The embattled telco has the support of the industry umbrella body for telecoms companies. The Association of Telecommunications Companies of Nigeria (ATCON) is arguing that the CBN lacks powers and jurisdiction to impose any such obligations on the telco. ATCON said MTN still remains an operator under the regulatory oversight of the Nigerian Communications Commission (NCC).
“All the issues are both contestable and are not so transparent to mere cursory attention. The stakeholders need to dialogue and address it outside of a possible legal quagmire. Besides, the timing and claims would impact more negatively on the country,” said ATCON’s president Mr. Oulsola Teniola to IT Edge News.
MTN is asking to dialogue with Nigerian authorities and has offered to provide further information when approached. Its statement reads:
“As previously disclosed the CBN has alleged improper dividend repatriations by MTN Nigeria Communications Limited (MTN Nigeria) and requested that $8.1 billion be returned “to the coffers of the CBN” whilst the AGF has alleged unpaid taxes on foreign payments and imports and that approximately $2.0 billion in relation to these taxes be paid to the Federal Government of Nigeria (and now directed that the payment of the $8.1 billion is dealt with through his office rather than as directed by the CBN).
“MTN Nigeria has denied these allegations and claims. Furthermore, four commercial banks were issued fines in respect of the administration of the CCI and irregular dividend repatriation matter and requested to return, in aggregate, the same $8.1 billion.
“In order to protect MTN Nigeria’s assets and shareholder rights within the confines of Nigerian law, we have applied today in the Federal High Court of Nigeria for injunctive relief restraining the CBN and the AGF from taking further action in respect of their orders, while we continue to engage with the relevant authorities on these matters.
“We remain resolute that MTN Nigeria has not committed any offences and will continue to vigorously defend its position.
“We will provide further information as and when available. Shareholders are accordingly advised to continue to exercise caution when dealing in the Company’s securities until a further announcement is made.”
