CBN, MTNN Reach Amicable Resolutions on $8.1B Forex remittances
by Oru Leonard
The Central Bank of Nigeria (CBN) and the MTN Nigeria Communications Limited (MTNN), has finally resolved Issues Relating to Foreign Exchange Remittances By MTN Nigeria Communications Limited
Earlier in August 2018, the CBN in August 2018 directed MTN Communications Limited (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 Certificates of Capital Importation (CCIs) irregularly issued to MTNN.
A release by the CBN’s Director of Corporate Communications, Mr. Isaac Okoroafor, states that “Following the keen interest shown by various stakeholders sequel to the regulatory action, the CBN committed to engage further with MTNN with a view to achieving an equitable resolution.
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.”
However, the Mr Okorafor said that some proceeds from the preference shares in MTNNs private placement remittances of 2008 were irregular having been based on CCIs that were issued without the final approval of CBN.
He also said that 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.
Following the current resolution by the CBN and MTNN, the execution of the terms of the agreement will now lead to amicable disposal of the pending legal suit between the parties and final resolution of the matter.
The CBN has assured foreign investors that the integrity of the CCIs issued by authorized dealers remain sacrosanct. Potential investors are encouraged to take advantage of the enormous investment opportunities that abound within Nigeria.
