CBN, MTN resolve $8.1bn repatriation impasse
The prolong tussle between MTN Nigeria and the Central Bank of Nigeria, over the $8.1billion foreign exchange remittances order has finally been put to rest as both parties recently reached an agreement.
CBN in a press release said it reached an amicable resolution of issues relating to foreign exchange remittances by MTN Nigeria Communications Limited.
Recall that the apex bank had in August directed MTN Nigeria Communications Limited, MTNN, to reverse repatriations valued at $8.1billion done on its behalf by four commercial banks between 2007 and 2015 on the basis of Certificates of Capital Importation, CCIs, issued to MTNN.
However, the CBN said following the keen interest shown by various stakeholders sequel to the regulatory action, it was committed to engage further with MTNN for an equitable resolution.
The statement signed by CBN’s Director of Corporate Communications, Isaac Okoroafor said, “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.”
Okoroafor said 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 Central Bank assured foreign investors that “the integrity of the CCIs issued by authorized dealers remains sacrosanct. Potential investors are encouraged to take advantage of the enormous investment opportunities that abound within Nigeria.”