CBN
CBN, MTN
CBN
CBN, MTN Resolve Foreign Exchange Remittances
Issue
The Central Bank of Nigeria (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.
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 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 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 authorized dealers remain sacrosanct. Potential investors
are encouraged to take advantage of the enormous investment
opportunities that abound within Nigeria.
Isaac Okorafor
Director, Corporate Communications