Fine: MTN Files Restraining Order Against Malami, CBN

The management of MTN Nigeria has sued the Central Bank of Nigeria (CBN) and the Attorney-General of the Federation, Abubakar Malami.

In a suit filed in Lagos on Monday, the telecommunication giant is seeking a restraining order against CBN and the AGF to protect its assets and shareholder rights.

In a letter written to MTN by Nigeria’s Attorney General of the Federation, Abubakar Malami, last week, the Federal Government asked the telco to pay the sum of $2 billion in tax arears.

The arrears, according to the government, covers import duties, VAT and withholding taxes on foreign imports/payments.

Malami said his office made a “high-level calculation” that MTN should have paid approximately $2 billion in taxes relating to the importation of foreign equipment and payments to foreign suppliers since 2008.

The CBN, on its part, ordered MTN to pay $8.13 billion for ‘illegally repatriating’ the said sum to South Africa.

The apex bank also fined four banks – Diamond Bank, Stanbic IBTC, Citi Bank and Standard Chartered Bank – involved in the process.

But MTN, in a statement said it “categorically and unequivocally” deny all charges related to investigations by the CBN and AGF into the company’s CCIs and unpaid taxes respectively.

The company said it would continue to engage with the relevant authorities as regards the development.

“The allegations being made involve issues that appear to be complex and so are easily misunderstood and misinterpreted. They are made even more confusing when the relevant authorities send conflicting messages and instructions and act in a way that appears un-coordinated and at cross purposes.

“The simple reality is that MTN Nigeria has never repatriated dividends on the CCIs referenced by the CBN and that MTN is fully compliant with Nigerian tax law.

“With situations like this, it is vital for both the government, regulators and the company to have absolute clarity on the nature of both the allegations being made and the processes that are being followed. In the absence of this clarity, our only option is to seek judicial intervention and to ask the courts to act as adjudicator. This has been done today,” Tobe Okigbo, MTN Nigeria corporate relations executive, said.