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MTN shares up 2% as CBN signals reduced repatriation demand

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MTN shares up 2% as CBN signals reduced repatriation demand

MTN shares rose this morning (Monday) by 2.55 percent on the Johannesburg Stock Exchange (JSE) after the Central Bank of Nigeria (CBN) said it may reduce the amount it directed the company to repatriate back to the country.

At 0837 GMT shares in MTN were up 2.03 percent to 85.50 rand, Reuters reports.

MTN and the CBN are in a clash over a sum of $8.1 billion it allegedly repatriated from Nigeria through illegal means.

In late August, the financial regulator directed the telecommunication company to refund the money, while it imposed a combined fine of N5.87 billion on four banks – Standard Chartered Plc, Citigroup Inc., Stanbic IBTC Plc and Diamond Bank Plc – that allegedly aided the process.

Read also: Nigeria to refine 50% of its crude by 2023 —Kachikwu

This prompted MTN to request for a court injunction restraining CBN from demanding the amount in order to buy itself time and fight the claim which wiped as much as 36 percent off its market value within two weeks.

“I don’t think it will be at $8.1 billion having provided documents,” CBN Governor, Godwin Emefiele, had said while speaking with reporters on Sunday in London.

According to him, “They will see they have been given a fair hearing. More information has been provided and I’m very optimistic that matters are going to be resolved amicably.”

 

 

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