MTN Places Caution on Shares Over $10.1b Nigerian Claims

• MTN Places Caution on Shares Over $10.1b Nigerian Claims

MTN Group yesterday advised investors to exercise caution in dealings on its shares as the telecommunication group faces uncertainties over a $10.1 billion controversy involving its Nigerian subsidiary-MTN Nigeria Communications Limited (MTN Nigeria).

In a statutory cautionary notice issued to investors yesterday, MTN Group-the parent company of MTN Nigeria, stated that while it continues to engage the Nigerian government on the request from MTN Nigeria to refund $8.1 billion in alleged inappropriate capital repatriation and another $2 billion tax claim, shareholders should trade cautiously on the shares of the company.

“Shareholders are accordingly advised to continue to exercise caution when dealing in the company’s securities until a further announcement is made,” MTN stated.

The Central Bank of Nigeria (CBN) had indicted MTN Nigeria over inappropriate Certificates of Capital Importation (CCI) and dividend repatriation, demanding a refund of the historic dividends between 2007 and 2015, which amounted to $8.1 billion.

The Attorney General of the Federation, which has been investigating corporate tax compliance, had also indicted MTN Nigeria for underpayment of taxes, demanding payment of $2.0 billion in allegedly unpaid taxes on importation of foreign equipment and payments to foreign suppliers over the last 10 years.

MTN has denied all the allegations, insisting that it complied fully with the provisions of the law in the issuance of the CCI and the tax payments.

“MTN Nigeria will continue to engage with the relevant authorities on all these matters and we remain resolute that MTN Nigeria has not committed any offences and will vigorously defend its position. We will provide further information as and when available,” MTN stated.