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MTN, CBN finally reach settlement in $8.1bn capital importation dispute

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MTN sustains credit rating amidst corporate governance breaches

The Central Bank of Nigeria (CBN) and MTN Nigeria have finally reached a settlement on the issue of the $8.1 billion claimed to have been illegally repatriated from the country.

In a statement released on Monday, the telecommunications company said it does not have to refund the $8.1 billion in question.

The apex bank had sanctioned four banks for aiding MTN in taking out $8.1 billion with irregular certificates of capital importation.

“MTN Nigeria has held various engagements in order to find an equitable resolution to the matter. In particular, a series of meetings were held in Lagos with CBN officials during November 2018. At these meetings MTN Nigeria provided additional material documentation which satisfactorily clarified its remittances,” the statement read.

Read also: Foreign Portfolio Investors withdraw N94.4bn in Q3

“The CBN upon review of the additional documentation concluded that MTN Nigeria is no longer required to reverse the historical dividend payments made to MTN Nigeria shareholders.

“However, the CBN maintains that the proceeds from the preference shares in MTN Nigeria’s private placement remittances of 2008 of circa USD$ 1 billion were irregular having been based on CCIs that only had an approval-in-principle, but not final regulatory approval of CBN.

“The CBN instructed MTN Nigeria to implement a notional reversal of the 2008 private placement of shares in MTN Nigeria at a net cost of circa N19.2 billion – equivalent to US$52.6m (the notional reversal amount).

“This is on the basis that certain certificates of capital importation (CCIs) utilised in the private placement were not properly issued.”

In August, the apex bank had fined Citibank, Diamond Bank, Stanbic IBTC Nigeria and Standard Chartered Bank, a total of N5.8 billion for allegedly issuing irregular CCIs to the telco and it ordered the telco to refund the $8.1 billion to its coffers.

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