MTN Shares Dip Over Tax Dispute

• MTN Shares Dip Over Tax Dispute

MTN shares declined by almost 7 percent on Tuesday after the Federal Government of Nigeria, through a Lagos high court, insisted Africa’s largest mobile operator evaded taxes.

TA Gazali, a government lawyer, pleaded with the court to throw out MTN’s attempt to stop it from paying backdated taxes.

MTN Nigeria’s lawyer, Wole Olanipekun, during court proceedings argued that Nigeria’s attorney-general, who imposed the penalty on the telecommunications giant had no right to do so.

The telecoms company has denied any wrongdoing and insisted it paid the right taxes over the years.

MTN Group shares, however, dipped by 6.8 percent immediately the report was published by Bloomberg, before paring losses to 2.1 per cent.

The company’s shares have fallen by 17 per cent since it was fast fined in 2018 by the Central Bank of Nigeria for illegal fund repatriation.

The company was fined $8.1 billion and two weeks later it was asked to pay back $2.1 billion in back taxes.

MTN Nigeria has since settled the illegal fund repatriation issue and paid $53 million.