We’ve Settled $8.1bn Repatriation Issue With MTN – Emefiele

The Central Bank of Nigeria (CBN) Governor Godwin Emefiele says
a final decision has been reached on the $8.1 billion MTN Nigeria
repatriation over which it was sanctioned in August.

Reacting to a question on the matter at the November 2018
Monetary Policy Committee (MPC) meeting held, yesterday, in Abuja,
the CBN governor still justified the CBN action on MTN and the four
sanctioned banks, saying that there was a rational for the
regulatory action.

The CBN had queried the process MTN used in repatriating $8.1bn
profits to South Africa, describing it as illegal and a flagrant
violation of Nigerian laws.

CBN thus ordered MTN and the four banks Standard Chartered Bank,
Stanbic IBTC Nigeria, Diamond Bank and Citibank Nigeria which
helped in the repatriation of the funds to return to the CBN
coffers the $8.1bn being the illegally repatriated amount.

The repatriation, according to the apex bank, happened over a
period of nine years.

Yesterday, the CBN said it took time to act on the matter
because it is better to be slow in taking decisions but once you
take them, they are portent and there is rational for the
decision.

There is rational for the decision we took. We expected certain
documents to be submitted; those documents have now been submitted.
We are in process of saying the matter has been resolved, Mr
Emefiele said.

He explained further that the CBN had meetings with the MTN
Group’s representative who came from South Africa over the
matter.

We have held meetings with the MTN Group and we are at the
verge, by this I mean, we are almost announcing the conclusion of
the matter. I’m very optimistic we have reached the end of the road
on this matter,he said.

He, however, noted that the sanctity of the CCIs being issued to
foreign investors remained sacrosanct. No other company or
individual is being investigated on CCIs.

This is an isolated matter. I must also say there are other
foreign investors in Nigeria, like Unilever, Nigeria Breweries etc
who have been carrying CCIs for the past 50 years. They have done
their business in the manner we are very happy about.

There are some issues with MTN but they are being resolved
equitably, amicably and to the benefit of all.

The CBN governor also warned banks against money laundering in
this electioneering time and also advised against lending to
politicians considering the high risk nature of such credits.

Meanwhile, rising from the MPC, all 11 members voted to hold all
key parameters again. Thus MPC voted to: Retain the MPR at 14 per
cent; retain the asymmetric corridor of +200/-500 basis points
around the MPR; retain the CRR at 22.5 per cent; and retain the
Liquidity Ratio at 30 percent.

The committee underscores that by holding its policy position
constant, it has confidence in the various policies and
administrative measures deployed by the bank which have resulted in
the moderation in domestic price levels and stability in the
foreign exchange rate, it said.

Thus, a hold position is an expression of confidence in the
policy regime, given the gradual improvements in both output growth
and price stability. On this premise, the downside risk to growth
and upside risks to inflation appears contained.

Meanwhile, Lukman Otunuga, a FXTM Research Analyst, has said
there should be no surprise that the Central Bank of Nigeria (CBN)
left the benchmark interest rate unchanged at 14% in November.

He said: The combination of oil price uncertainty, falling
reserves, lingering inflationary pressures, an appreciating dollar
and other external risks have forced the CBN to maintain the status
quo on monetary policy.

Although a rate cut during the first quarter of 2019 remains a
possibility, some key prerequisites must be achieved.

He noted that inflationary pressures need to moderate further
while economic growth must display further signs of recovery.

According to Otunuga, although the nation remains on a quest to
diversify from oil reliance, a fair chunk of government revenue is
still realised from oil sales.

With oil trading at depressed levels, its impacts are likely to
be felt on the economy and naira exchange. If the economic
conditions brighten before the presidential elections next year,
the CBN still has a chance to cut rates in a bid to simulate
growth.

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