The Central Bank of Nigeria (CBN) has asked MTN Nigeria to pay $52.6million in settlement of the dispute over the certificates of capital importation without final regulatory approval.
The CBN in a release on Monday said the agreement was reached after several engagements with the telecoms giant in Lagos bringing to
The apex bank stated that following the keen interest shown by various stakeholders sequel to the regulatory action, it committed to
CBN spokesperson Isaac Okoroafor said: “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.”
However, the CBN identified that the proceeds from the preference shares in MTNN’s private placement remittances of 2008 were irregular having been based on 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 statement further read.
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 authorised dealers remain sacrosanct.
A statement on MTN’s website confirmed the resolution reached with the CBN.
