MTN has challenged both the Central Bank of Nigeria (CBN) and the Attorney-General of the Federation (AGF) at a Federal High Court asking the court to restrain both from enforcing their orders that it should refund $8.1 billion and $2 billon to the Federal Government.
While the CBN had accused the company recently of illegally repatriating $8.8 billion through improper Certificates of Capital Importation (CCI), the AGF demanded the telecom operator’s payment of $2 billion in unpaid taxes over a 10-year period.
In a statement issued by the telecommunications company’s Corporate Relations Executive, Tobe Okigbo, the telco “continues to categorically and unequivocally deny all charges related to the CBN and AGF investigations into the company’s CCIs and unpaid taxes respectively”.
He recalled that the CBN had alleged improper dividend repatriations by MTN Nigeria and requested that $8.1 billion be returned “to the coffers of the CBN, whilst the AGF has alleged unpaid taxes on foreign payments and imports and that approximately $2.0 billion in relation to these taxes be paid to the Federal Government of Nigeria (and now directed that the payment of the $8.1 billion is dealt with through his office rather than as directed by the CBN).
MTN Nigeria has denied these allegations and claims.
Okigbo stated further: “Furthermore, four commercial banks were issued fines in respect of the administration of the CCI and irregular dividend repatriation and requested to return, in aggregate, the same $8.1 billion.
“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”, the telco’s spokesperson stated.
He restated the company’s commitment to Nigeria’s development, pointing out that the company has not committed any offences and will continue to defend its position vigorously.
This is even as he re-assured that the company will continue engaging with the relevant authorities, and further information will be provided as and when available
