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Tag: MTN

  • $10.1b cash demand: MTN takes CBN, AGF to court

    Mobile giant MTN Nigeria has taken its battle of integrity to the court.

    It has urged the Federal High Court to restrain the Central Bank of Nigeria (CBN) and the Attorney-General of the Federation (AGF) from enforcing their orders that the telco should refund $8.1 billion and $2 billon to the Federal Government.

    The CBN accused the company of illegally repatriating $8.8 billion through improper Certificates of Capital Importation (CCI). The AGF is  seeking the payment of $2 billion in unpaid taxes over a 10-year period.

    Four local lenders, found wanting in the deal were fined. The fines have since been deducted by the CBN from their accounts.

    The firm has repeatedly rejected both allegations.

    Group Chief Executive Officer (CEO) Rob Shutter is sure  of an amicable settlement of the issues.

    Responding to a question on the crisis on the sideline of the ongoing International Telecoms Union (ITU) Conference at the International Convention Centre (ICC) in Durban, South Africa, Shutter said: “In all its 22 countries of operation, Nigeria is the telco’s largest market.

    The challenges of the past two weeks, he said, will be addressed.”

    The court processes notwithstanding, the telco will  continue to engage with the authorities on these matters.

    In a statement, MTN Corporate Relations Executive Tobe Okigbo said the telco “continues to categorically and unequivocally deny all charges related to the CBN and AGF investigations into the company’s CCIs and unpaid taxes respectively”.

    He said as previously disclosed, the CBN has alleged improper dividend repatriations by 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 and requested to return, in aggregate, the same $8.1 billion.

    “The allegations being made involve issues that appear to be complex and so are easily misunderstood and misinterpreted. They are made even more confusing when the relevant authorities send conflicting messages and instructions and act in a way that appears un-coordinated and at cross purposes.

    “The simple reality is that MTN Nigeria has never repatriated dividends on the CCIs referenced by the CBN and that MTN is fully compliant with Nigerian tax law.

    “With situations like this, it is vital for both the government, regulators and the company to have absolute clarity on the nature of both the allegations being made and the processes that are being followed.

    “In the absence of this clarity, our only option is to seek judicial intervention and to ask the courts to act as adjudicator. This has been done today.”

    Okigbo restated MTN’s commitment to Nigeria, pointing out that the company has not committed any offences and will continue to defend its position vigorously.

    “The company will continue engaging with the relevant authorities, and further information will be provided as and when available”, Okigbo assured.

     

  • ATCON faults CBN over $8.1b refund order to MTN

    The Association of Telecoms Companies of Nigeria (ATCON) has faulted  the order to refund $8.1billion handed to MTN Nigeria by the Central Bank of Nigeria (CBN), saying the apex bank has no power to do so.

    Its President, Oulsola Teniola, in an email report, said the cash in question belongs to MTN in the first place, wondering what the CBN wants to achieve by its order.

    The CBN has accused MTN of untidy business transactions involving alleged repatriation of $8.1billion which it ordered the carrier to refund, while the Office of the Attorney General of the Federation has also issued demand notice of $2billion unpaid taxes over a 10-year period to the telco.

    Four local lenders alleged to have facilitated the repatriation were also sanctioned by the apex bank but MTN has strongly denied both allegations, adding that it had the clearance of the apex bank and a clean bill of record with the tax authorities.

    Teniola said the industry does not understand what the CBN intends to achieve by the directive to an operator on which it has no regulatory oversight.

    He said: “It is very important to note that the figure referred to has almost been fully paid by MTN and that the $8.1billion doesn’t belong to CBN but belongs to MTN. So, on this basis, it is hard to understand  what CBN seeks (to achieve) by its demands on MTN that it doesn’t have regulatory oversight over.”

    On how the logjam could be resolved, he said dialogue and transparency would do the magic.

    “Clarity, transparency and continued dialogue among  CBN, the banks and MTN to amicably resolve this matter in the interest of the wider stakeholder community, especially, potential investors closely watching developments on this issue.

    “At the moment, processing of CCIs (Certificate of Capital Importation) is shrouded in confusion in what should be a relatively straight forward process in between the banks and CBN their regulator.

    According to him, there is no likelihood that MTN refund such huge cash because of its timing.

    He said: “A refund is very unlikely. The size of the demand and timing is unreasonable and not in the interest of the country. After all, the Naira equivalent will have to be returned to MTN Nigeria. It is then an interesting situation that this seeks to redress events that occurred when CBN had full oversight and approved the transactions. How do they intend to do that?”

    According to Teniola, the matter should be between the banks and the apex bank and not necessarily the banks’ customers (MTN).

    “This I believe is a matter that should be in between the banks and CBN and not the client of the banks. NCC may decide to intervene if events unfold that threaten the survival of MTN and the telecom industry that they regulate. For now, it is too early to see which way this will take,” he said, adding, however, that he is not in an official capacity or position to quantify or qualify the impact of the development to corporate brand of the telco.

    “I fully believe MTN will continue to engage with the relevant authorities to resolve this latest setback,” Teniola said.

    CBN, had in a letter to MTN, said its investigation revealed that the shareholders of the telco invested $402,590,261.03 in the company from 2001 to 2006, which was carried out through the inflow of foreign currency cash transfers and equipment importation, as evidenced by the CCIs issued by Standard Chartered Bank (SCB), Citi Bank (CB) and Diamond Bank (DB);  and the CCIs issued at the time of the investment by the above banks to MTN for $402,590,261.03 showed that $59,436,923.44 was invested as shareholders’ loan and $343,153,339.56 as equity.

    “However, a review of your organisation’s financial statements for the year ended December 31, 2007 revealed that $399,594,146.00 was recorded/invested as shareholders’ loan and $2,996,117 as equity investment, in accordance with the shareholder’s agreement but contrary to the CCIs issued by the banks

  • MTN sponsors Durbar festival

    The eid-el Kabir season we all look forward to yearly has come and gone but the recollections we had of the festivities is still fresh in our memories. The season means different things to different people across the country; for some, it means travelling to connect with family and friends in the spirit of “Ileya”. For the foodies, it is all about the Sallah yummy, while others are excited about the prospect of witnessing the Durbar festival.

    The rejuvenated edition of the Durbar festival in Ilorin, the Kwara State capital, was a whole lot of fun, excitement and full of energy as MTN Nigeria threw its weight behind the festival. The information communication and telecommunications giant, MTN Nigeria, decided to be a part of the new-look Durbar in the State of Harmony which was held on Wednesday the 22nd of August, 2018. Durbar, a century-old festival in most parts of northern Nigeria, is a celebration that involves prayers, parade by the Emir and his entourage as well as accompanying music.

    In Ilorin, the seat of the Emir, Abubakar Zulu Gambari, the Durbar was celebrated with the governor of the state, the Emir and other dignitaries in attendance. This year’s edition lived up to its billing as the Emir had constituted a committee to see to a rebranded Durbar that truly showcased the people’s heritage to the entire world. As a result of this, MTN Nigeria joined in the celebration as part of its effort to promote the rich cultural heritage found throughout the Nigerian landscape under a bigger initiative – Kulture Fest.

    Kulture Fest, an initiative of the ICT company, aims to support, enrich and showcase the diverse culture that is spread all over the country to the world. Under Kulture Fest, important festivals and traditions like the Ofala Nnewi, Argungu and the recently concluded Osun/Osogbo festivals have been aided. The Durbar is yet another festival that the company has brought under the Kulture Fest umbrella. The emirate city of Ilorin played host on Wednesday to culture-conscious Nigerians as well as observers from around the globe with more than 500 horses on display at the annual festival.

  • MTN faults CBN on conversion of loan to preference shares

    MOBILE giant MTN Nigeria yesterday faulted the Central Bank of Nigeria (CBN) over its insinuation that the conversion of a shareholder loan to preference shares has any relation with the repatriation of dividends. It insisted that the two are not connected, adding that it was trying to understand the apex bank’s position on the matter.

    The CBN had ordered the telco to refund $8.1billion it allegedly repatriated illegally and sanctioned four local lenders for their roles in the deal.

    Besides, the Office of the Attorney General of the Federation is asking MTN Nigeria to pay $2billion taxes allegedly owed over 10 years.

    MTN continues to strenuously deny the allegations being made by the CBN. MTN has also rejected  the findings of the Attorney General’s investigation, saying it had fully settled all amounts owed under the taxes in question.

    The firm said: “It is both regrettable and disconcerting that despite the historic engagements with the Nigerian authorities by MTN Nigeria, the Senate investigation into the CCI matter, and the multiple tax assessments done by the Nigerian tax authorities over many years that were satisfactorily concluded, that these matters are being reopened.”

    Speaking on the CBN allegations, its Corporate Relations Executive Tobe Okigbo said: “From the CBN’s own letter and subsequent statements, it is clear that there is no dispute that the capital captured in MTN’s books and for which CCIs  (Certificates of Capital Importation) were issued was imported into Nigeria, and this is acknowledged explicitly by the CBN. It is equally clear that Nigerian law provides for guaranteed unconditional transferability of funds through an authorised dealer in freely convertible currency relating to dividends or profits attributable to the investment, payments and in respect of loan servicing where a foreign loan has been obtained.

    ”All dividend repatriation done by MTN Nigeria to its shareholders was done on the basis of its equity capital and all the historic dividends were declared against valid equity CCIs and in fact no preference dividends were declared and no interest in respect of these preference shares was paid. This means that it is incorrect to suggest that the conversion of a shareholder loan to preference shares has any relation to the repatriation of dividends. The two are simply not connected and we are trying to understand this position that the Central Bank has taken.”

    Also reacting to  the Attorney General’s “demand notice” for historical tax obligations, Mr Okigbo said MTN conducted a detailed review of these claims, and provided evidence of tax remittance to the Attorney General’s office. “The Attorney General’s notice indicates that he is rejecting this evidence. We believe that all taxes due to the Nigerian government have been paid and these allegations have not been raised by any of the revenue generating agencies that MTN engages with regularly, and from whom MTN has received numerous awards for compliance,” Okigbo said, adding that MTN Nigeria will continue to engage with the relevant authorities on all these matters remained resolute that the telco has not committed any offences and will therefore, vigorously defend its position.

    A statement from the telco explained that MTN Group and the original shareholders injected $402, 625,419 into MTN Nigeria between 2001 and 2006 in the form of loans and equity. These initial inflows were the basis for the issuance of various legacy CCIs obtained from Authorised Dealers in accordance with regulations. The inflow of capital has been confirmed by the CBN.

    The CCI process is essentially in place both for the protection of investors as well as to provide the CBN with documentary evidence for monitoring capital inflows and outflows. Although over time the CCIs have been re-issued, consolidated and re-constituted to reflect the changing MTN capital and shareholding structure, the amount of  $402, 625,419 has remained the same.

    “One aspect of the changing capital structure was the conversion of shareholder loans to preference shares. It is important to note that all the historic dividends were declared against valid equity CCIs and in fact no preference dividends were declared and no interest in respect of these preference shares was paid.

    “The Attorney General notified MTN that his office made a high-level calculation that MTN Nigeria should have paid approximately $2,0 billion in taxes relating to the importation of foreign equipment and payments to foreign suppliers over the last 10 years and he requested MTN Nigeria to do a self-assessment of the taxes in this regard that have been actually paid.

    “In August 2018 MTN submitted comprehensive documentation to the office of the AG. MTN Nigeria has also completed an initial assessment of the full period which indicates that total payments made to the tax authorities in regard to these foreign imports and payments in aggregate are $700 million. There are valid reasons for the differences between the actual payments and the AG high-level assessment.

    “We were notified by the office of the AG last week that they have not accepted the documentation presented and they have given notice of an intention to recover the $2.0bn from MTN Nigeria. Based on the detailed review performed, MTN Nigeria believes it has fully settled all amounts owing under the taxes in question,” MTN said.

     

  • MTN loses 881,586 subscribers in one month

    Nigeria’s largest telecoms operator, MTN lost 881,586 subscribers between June and July, the latest industry statistics released by the Nigerian Communications Commission (NCC), has shown.

    The total number of active lines however decreased by 999,891

    The Central Bank of Nigeria (CBN) had ordered MTN to refund $8.1 billion it allegedly repatriated through illegal means while the Office of the Attorney General of the Federation had also issued demand notice to recover $2billion unpaid taxes. The telco denied both allegations.

    Globacom’s subscribers increased by 214,646 while Airtel’s subscribers increased by 149,880. 9mobile, which is on the verge of being sold, also witnessed a decrease of 246,221.

    The regulator said the active mobile lines at the end of July decreased to 161.42 million from the 162.30 million in June.

    Also, the mobile code division multiple access (CDMA) for active mobile lines in July was 125,444 as against 217,566 in June, a decrease of 92,122.

    The report said the number of fixed wired/wireless for active mobile lines in July was 140,582 compared to June, which had 140,627 lines, indicating a decrease of 45 lines.

    According to NCC, the number of voice-over-internet protocol (VOIP) was 101,131 in July compared with 97,941 recorded in June, recording an increase of 3,190.

    Teledensity, which is the number of telephone connections for every 100 individuals living within an area and it varies widely across the country, reduced by 0.69 in July to 115.57 as against 116.26 in June.

    NCC also said the number of connected lines in July stood at 238.21 million as against 239.33 million in June, a decrease of 1.12 million.

    The Code Division Multiple Access (CDMA) connected lines for the month was 246,126 as against 3.58 million in June, a decrease of 3.33 million, the subscribers’ data revealed.

    The report also showed that the number of fixed wired/wireless for connected lines in July was 350,998 compared to June that had 350,644, an increase of 354 lines.

    It also showed that the number of Voice of Internet Protocol (VOIP) for connected lines in July was 667,763 as against 642,734 in June rising by 25,029 lines.

  • Internet users in Nigeria hit 103.6 million in July – NCC

    Internet users in Nigeria increased marginally to 103.6 million in July, the Nigerian Communications Commission (NCC)  has said.

    The NCC disclosed this on Wednesday in its Monthly Internet Subscribers Data for July posted on its website.

    According to the data, Airtel, MTN and Globacom gained more internet subscribers during the month under review while 9mobile was the biggest loser.

    The data also showed that overall internet users increased to 103,671,778 in July from 102,805,122 in June, showing an increase of 866,656.

    Read Also: NCC: sale of 9mobile ‘ll be completed soon

    The breakdown also revealed that Globacom gained the most with 574,821 new internet users, increasing its subscription in July to 27,146,075, up from 26,571,254  in June.

    It further showed that 9mobile lost 218,086 internet users in July, decreasing its subscription to 10,367,260, as against June when it recorded 10,585,346.

    NCC indicated that MTN also gained 134,171  new users in the month under review, increasing its subscription to 39,071,670, in July as against 38,937,473  in June

    It said that Airtel gained 375,754  new internet users in July, totalling  27,086,773 as against 26,711,049 in June.

     

    NAN

  • MTN kicks as govt demands for $2b ‘unpaid’ taxes

    MTN Nigeria has been asked to pay $2billion for import duties, Value Added Tax (VAT) and withholding taxes on foreign imports/payments.

    But the telco has rejected the demand, which is from the Office of the Attorney-General of the Federation.

    In a statement, the company said it had been lauded by the various tax authorities for its faithfulness on tax remittance to the Federal Government.

    It has, however, notified its stakeholders about the new demand from the Federal Government.

    The statement, which was endorsed by its Corporate Relations Executive, Tobe Okigbo, said: “MTN equally strenuously rejected the findings of the Attorney General’s investigation and believes it has fully settled all amounts owing under the taxes in question.”

    “Following the receipt of the letter from the CBN on foreign exchange repatriation, MTN Nigeria has provided an update on the company’s position on the issue. The company has also notified the market and all stakeholders that it has received a notice from the Attorney General of Nigeria that he intends to recover up to $ 2 billion of tax relating to, inter alia, import duties, VAT and withholding taxes on foreign imports/payments.

    “It is both regrettable and disconcerting that despite the historic engagements with the Nigerian authorities by MTN Nigeria, the Senate investigation into the CCI (Certificate of Capital Importations) matter, and the multiple tax assessments done by the Nigerian tax authorities over many years that were satisfactorily concluded, that these matters are being reopened.

    ”From the CBN’s own letter and subsequent statements, it is clear that there is no dispute that the capital captured in MTN’s books and for which CCIs were issued was imported into Nigeria, and this is acknowledged explicitly by the CBN. It is equally clear that Nigerian law provides for guaranteed unconditional transferability of funds through an authorised dealer in freely convertible currency relating to dividends or profits attributable to the investment, payments and in respect of loan servicing where a foreign loan has been obtained.

    “All dividend repatriation done by MTN Nigeria to its shareholders was done on the basis of its equity capital and all the historic dividends were declared against valid equity CCIs and in fact no preference dividends were declared and no interest in respect of these preference shares was paid. This means that it is incorrect to suggest that the conversion of a shareholder loan to preference shares has any relation to the repatriation of dividends. The two are simply not connected and we are trying to understand this position that the Central Bank has taken.”

    Reacting to the Attorney-General’s “demand notice” for historical tax obligations, Mr Okigbo said: “MTN has conducted a detailed review of these claims, and provided evidence of tax remittance to the Attorney General’s office. The Attorney General’s notice indicates that he is rejecting this evidence. We believe that all taxes due to the Nigerian government have been paid and these allegations have not been raised by any of the revenue generating agencies that MTN engages with regularly, and from whom MTN has received numerous awards for compliance.”

    He, however, said the telco will continue to engage with the authorities on all these matters and “we remain resolute that MTN Nigeria has not committed any offences and will vigorously defend its position”.

    Giving further update on the CBN letter on foreign exchange, the telco said the MTN Group and the original shareholders injected $402, 625,419 into MTN Nigeria between 2001 and 2006 in the form of loans and equity. These initial inflows were the basis for the issuance of various legacy CCIs obtained from Authorised Dealers in accordance with regulations. The inflow of capital has been confirmed by the CBN.

    “We were notified by the office of the AG last week that they have not accepted the documentation presented and they have given notice of an intention to recover the $2.0billion from MTN Nigeria. Based on the detailed review performed MTN Nigeria believes it has fully settled all amounts owing under the taxes in question,” the telco said.

  • CBN ‘probed MTN, banks for 30 months’

    The Central Bank of Nigeria (CBN) decided to punish MTN Nigeria and four banks for forex infractions after a painstaking investigation spanning 30 months, CBN Governor Godwin Emefiele has said.

    Emefiele, who spoke in China, said he wanted to clear the air because the matter and the offences committed by the entities concerned were very weighty and had attracted global attention.

    He said the total amount to be repatriated by the banks and MTN stands at $8.14billion, adding that when the payment is received, the CBN would credit the company with the naira equivalent at the exchange rate at which the transactions were consummated.

    The CBN governor said “It is important to stress that the CBN examiners had been investigating three charges of infractions against the four banks and MTN, particularly the manner of funding the equity investment into MTN and the subsequent capital repatriation that resulted thereafter.”

    Emefiele told Busiess Day, as quoted by online medium, The Will, that “the investigation was in two parts, the first allegation started about two and a half years ago, when examiners began to investigate;

    The method of payment for shares by local shareholders in MTN International, which is the sole owner of MTN Nigeria.

    Whether the banks breached the extant regulations requiring banks to issue CCIs within 24 hours of receipt of funds inflowed into Nigeria.

    On the 1st charge regarding investment by local shareholders, the CBN examiners discovered that the local investors, purchased forex from the Nigerian foreign exchange market, repatriated the funds and these funds formed part of the total funds inflowed by MTN totaling $402m between 2001 and 2003. By the extant regulation, only funds inflowed into Nigeria qualify for the issuance of CCI. However, examiners observed that the extant forex regulations at the time of investment allowed Nigerians to purchase shares with foreign currency. So, whereas you would say that the investment of the local shareholders should be voided because the funds came from within Nigeria and were round tripped, you can also say that it is allowed because Nigerians were allowed to invest in foreign currency assets. So we reasoned that since this transaction happened over 10 years ago and the company was doing well, we should grant them a waiver.

    On the Second offence regarding the CCIs, the regulation provides that banks must issue CCIs for inflowed funds within 24 hours. The examiners reported that the banks failed to issue some of the CCIs within 24 hours; which is sanctionable. Again the CBN decided to overlook this offence given that these transactions took place over 10 years ago.

    It was based on these facts that the CBN wrote the letter dated February 22, 2017 granting MTN the permission to continue paying dividends on the CCIs. So when our Directors were summoned by the Senate to provide the CBN perspective, they told the Senate that the CBN had pardoned the offences and based on this, the Senate towed the same line with the CBN and cleared MTN and the banks of the issues.

    Now the third offence, which is actually the crux of the matter in dispute now relates to the unauthorized conversion of a loan of $399 million to preference shares by the MTN and the banks and thereafter repatriated the sum of $8.1 billion without CBN final approval.

    The facts from the last examination which commenced in March 2018 is that, at the inception of the company, the shareholders inflowed the sum of $402million and reported that $343million was equity and $59 million as loan. The examiners later discovered that in its 2007 audited accounts MTN’s auditors reported that the investment of $402million was stated as $2.99million in equity and $399m as loan, a statement that is in conflict with their earlier disclosure and on the basis of which CCIs had long been issued to the company. Soon after, the company, through its bankers approached the CBN for the conversion of the loan of $399million to Preference shares. The CBN thereafter gave an Approval in Principle subject to fulfilling certain conditions. Notwithstanding, the Company and the bank went ahead and concluded the conversion to Preference shares without CBN’s final approval and based on this, repatriated the sum of $8.1billion outside the country.

    The CBN felt this was too grievous and that this couldn’t be ignored. When the Committee of Governors was informed about this breach, it sounded unbelievable. In order to give the MTN and the banks a fair hearing, a meeting comprising the CBN Committee of Governors, the over 20 Examiners, the MTN officials and the banks was held on May 25,2018. At this meeting, we gave the company the opportunity to defend itself over the breach but unfortunately, it couldn’t. In fact the bank that concluded the conversion, apologized; stating that it was an unintended error. The COG was alarmed that a bank could ignore CBN’s directive requiring final approval before such a huge transaction could be consummated. The COG further directed MTN and the banks to meet with the examiners to provide any evidence within one week that could convince the examiners to change their position. Indeed, the deadline for the submission of documents and evidence was extended to over 12 weeks. Despite granting these extensions, the examiners position never changed, as the Company and the banks had no new evidence to provide. Based on this, the examiners concluded their reports and made their recommendations which was subsequently adopted by the COG.

    However, as it stands, letters of sanctions have been sent to all parties. This explanation has become necessary so as to clear certain misconceptions currently circulating in the public domain.

    The banks hit by capital importation breach allegations yesterday continued to defend their integrity.

    The lenders are also claiming that the transactions in question were approved by the apex bank, which fined them N5.8 billion.

    The CBN directed Standard Chartered Bank, Stanbic IBTC Bank, Citi Bank and Diamond Bank to pay N5.8 billion fines and refund alongside MTN $8.1 billion said to have been repatriated illegally. The banks have begun engaging the CBN to state their sides of the story.

    The banks allegedly issued irregular Certificates of Capital Importation (CCI) on behalf of some offshore investors of MTN Nigeria Communications Limited. Standard Chartered Bank was fined N2.4 billion, Stanbic IBTC N1.8 billion, Citibank Nigeria N1.2 billion and Diamond Bank N250 million. MTN was directed to refund $8.134 billion to the CBN’s coffers.

    The apex bank said its investigation was triggered by “allegations of remittance of foreign exchange with irregular CCI between 2007 and 2015, in “flagrant violation of extant laws and regulations of Nigeria, including the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1995 of the Federal Republic of Nigeria and the Foreign Exchange Manual, 2006”.

    The banks are insisting that the apex bank vetted and approved the transactions. Sources within CBN who are familiar with the development confirmed that the banks and MTN have been engaging key CBN officials to see that the issue is revisited.

    “What is important is that the CBN has sent a clear signal to all parties that it cannot be business as usual anymore,” an official said. He added that “even though we are not averse to reviewing the cases, I cannot assure you that the CBN is in any position to review these fines which are the end-result of painstaking investigations.”

    MTN has argued that it adhered to all extant laws in the payment of dividends to its shareholders between 2007 and 2015.

    It was gathered that in its official response to CBN, Stanbic IBTC described the conclusions reached by the regulator as based on ‘factually incorrect premises’. According to sources privy to the engagements, Stanbic IBTC reminded the CBN of the outcome of its findings on the issue, following a special examination conducted in March. The finding reportedly cleared the bank of any wrongdoing as its actions were in line with extant rules and regulations.

  • MTN Donates Ultra-modern Ferry Terminal to Lagos State

    Lagos has been described as the home of aquatic splendor and as part of efforts to harness the potentials of water transportation, MTN Nigeria has donated a world class ferry terminal to the state government at a colourful ceremony in Falomo, Ikoyi on August 30, 2018.

    The new Five Cowrie Creek Terminal was built at the site of a former refuse dump near the lagoon, close to MTN’s headquarters. After seven years of work, the jetty will now serve as the headquarters of the Lagos State Waterways Authority (LASWA), and includes a berthing area for up to 20 boats, ticketing/waiting areas, a restaurant and a rooftop section with a lovely view of Ikoyi and Victoria Island.

    In addition to the terminal, a multi-level carpark (with the capacity to house 800 cars) was also commissioned by the State Governor. This carpark was also built and operated by MTN Nigeria for the Lagos State Development and Property Corporation (LSDPC), under a Public Private Partnership (PPP) arrangement.

    Both facilities were commissioned by the State Attorney-General, Adeniji Kazeem (who represented Governor Akinwunmi Ambode) in the presence of excited LASWA staff, state government officials and some traditional rulers.

    The MTN delegation to the event was led by the Chief Operating Officer of MTN Nigeria, Mazen Mroue; the Chief Enterprise Business Officer, Lynda Saint Nwafor and the Customer Services Executive, Ugonwa Nwoye among others.

    In his speech, the governor said the completion of the new Terminal project was a demonstration of the state government’s resolve to ensure the development of the water transport sector in the state.

    He praised MTN for its investment, support and commitment to ensuring that both projects were delivered, while calling on corporate organisations to partner with the state government in its efforts to improve public infrastructure.

  • The CBN/MTN Fine Issue – Facts v.s Fiction

    The Central Bank of Nigeria announced on Wednesday, 28th August, 2018, that it is imposing sanctions on four (4) banks for facilitating the ‘illegal’ repatriation of capital from Nigeria on behalf of MTN Nigeria and its shareholders.

    This surreptitiously followed the publication of an ‘exclusive’ in Sahara Reporters alleging that  Central Bank Governor, Godwin Emefiele, was reluctant to fine unspecified individuals and corporate bodies other entities for unlawful conduct in respect of repatriation of dividends to offshore shareholders of MTN Communications Nigeria Limited.

    This follows in the heels of a N330 billion fine that was imposed on the Information and Communications Technology (ICT) company by Nigeria’s telecommunication regulator, Nigerian Communications Commission (NCC) in October, 2015.

    The hefty fine has since resulted in a very significant fall in MTN Nigeria’s share price and the timing of the fining, coupled with continuously rising red flags has developed intense speculation as to the veracity of the allegations that have been made.

    This has brought to the fore certain issues that require answers:

    The DSS and National Assembly investigations’ were completed  in 2016 and 2017, what has spurred on the CBN to act at this moment? If the Central Bank of Nigeria  has approved the accounts of these (Standard Chartered, Stanbic, Citibank and Diamond) banks for the last ten years and continued to approve the repatriation of funds by MTN, then could it have knowingly approved transactions it believed to be fraudulent?

    When  did the CBN determine that MTN and the banks were culpable of such ‘illegal conducts’ and what has caused the CBN to allow MTN to repatriate funds since 2015?

    Why do the these infractions cover only the period 2007 to 2015? What conditions changed in 2015? Does this allude to the fact that all MTN dividend and capital repatriation payments since 2015 will be deemed illegitimate or fraudulent? If so, how will that be possible, with the same CCIs issued?

    These niggling questions need to be answered as soon as possible as investor confidence in Nigeria is quickly depleting as a result of the recent actions of NCBN.