IT'S OVER: MTN & CBN Resolve $8.1 Billion Dispute
So, it’s safe to say MTN Nigeria has gotten off the hook with regulators in Nigeria.
The dispute that Africa’s largest carrier was involved in with the Central Bank of Nigeria, CBN over an illegal repatriation of $8.1 billion profits has been resolved.
MTN has agreed to make a $53 million payment to resolve the dispute.
“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,” MTN said in a statement on Monday.
However, the central bank has found that a 2008 private placement remittance worth around $1 billion was based on certificates that did not have final approval.
As such, MTN said it had been instructed by CBN to implement “a notional” reversal of that transaction by making a $52.6 million payment.
“MTN Nigeria and the CBN have agreed that they will resolve the matter on the basis that MTN Nigeria will pay the notional reversal amount without admission of liability,” MTN said in the statement.
The CBN confirmed the outline of the agreement with MTN, without mentioning the $53 million payment. The agreement would lead to an “amicable disposal of the pending legal suit between the parties and final resolution of the matter,” it said in a statement.
MTN and the CBN had earlier filed a claim and counter-claim in a court over the dispute. The legal case has been adjourned several times as lawyers said talks were under way on a settlement.
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