Nigeria hints at resolution to MTN dispute

MTN Group and its bankers have provided more documents that may reduce Nigeria’s US$8.1-billion claim on the South African wireless carrier, which could be resolved soon, Central Bank of Nigeria governor Godwin Emefiele said on Sunday.

The central bank alleged in late August that MTN and four banks — Standard Chartered, Citigroup, Stanbic IBTC and Diamond Bank — illegally repatriated money from Nigeria and that the company should return $8.1-billion. The local regulator also fined the four banks a combined $16-million.

Speaking to reporters in London, Emefiele said he expected that the new information would help cut the size of the claim and that the matter would be resolved “amicably”.

“I don’t think it will be at $8.1-billion having provided documents,” Emefiele said, adding his staff are studying the documents and he hoped to make a decision on the matter in a “couple of weeks”.

MTN sought an injunction in early September to buy itself time and fight the claim in its biggest market, which wiped as much as 36% off its market value within two weeks.

The central bank has asked the federal high court in Lagos to deny MTN’s request and said the company should pay an annualised 15% interest on the dividends until the matter is ruled upon, and then 10% until the whole sum is paid, according to legal documents filed by the regulator.

‘Fair hearing’

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

Emefiele said the clash with MTN had taken a “global dimension” that it didn’t need to and that he was keen to demonstrate to international investors how open the Nigerian market is, calling the MTN matter “isolated’’ and no reason “for anyone to lose any sleep”.

“This is not a matter that should have blown so openly,’’ he said. “Nigeria is a country that happens to be very, very open.’’  — Reported by Simon Kennedy, (c) 2018 Bloomberg LP