Nigerian govt slams another $2bn sanction on MTN

Barely two weeks after the Central Bank of Nigeria (CBN) directed MTN Nigeria Communications Limited to refund $8 billion over alleged illegal repatriation of shareholders’ dividends, the Federal Government has ordered the company to repay $2 billion in tax arrears.

The Auditor-General of the Federation, Abubakar Malami, wrote to MTN Nigeria on Tuesday demanding for the amount, saying his office made a “high-level calculation” which showed that MTN should have paid about $2 billion in taxes.

The taxes, according to the AGF, were relating to the importation of foreign equipment and payments to foreign suppliers since 2008, adding that the arrears cover import duties, VAT and withholding taxes on foreign imports/payments.

But MTN Nigeria in its reaction said, “Based on the detailed review performed, MTN Nigeria believes it has fully settled all amounts owing under the taxes in question.”

Read also: South Africa’s economy enters recession

In 2015, the Nigerian Communications Commission (NCC) had slammed the telecommunication company with a $5.2 billion (N1 trillion) fine for violating SIM card registration regulations directing telcos to deactivate unregistered lines.

The fine was imposed on MTN for not disconnecting about 5.1 million improperly registered lines in its network within the stipulated deadline.

Although, NCC had threatened not to reduce the fine, it however slashed it to $1.65 billion (N330 million) after several appeals and negotiations including diplomatic intervention by the South African government.

 

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